Relaxo Footwears Ltd. share price target

Relaxo Footwears Ltd.'s (Relaxo) Q1FY26 result was below our estimates on key parameters. The company had yet another quarter of weak performance as sales volume declined. We believe there is no major uptick in demand environment post muted performance in Q4FY25 as well. The management's prudent cost cutting has been detrimental in operating margin improvement in Q1FY26. We believe Relaxo's earnings may remain under pressure in near term as sales volume may remain muted. However, the management is taking strategic steps such as the Retailer Parivar App, broadening the ecommerce...

With an 8% upside from the CMP, we maintain our HOLD rating on the stock.

Relaxo Footwears’ (RLXF) 1QFY26 results reflect persistent volume pressure amid restructuring of distribution, muted demand and heightened competition.

Relaxo Footwears (RLXF) reported another weak quarter with EBITDA declining 7% YoY (6% miss) as volume (-10% YoY) was impacted by overall muted demand and restructuring of its distribution model.

We maintain our HOLD rating on the stock.

Relaxo Footwears (RLXF) reported another weak quarter with revenue declining 6% YoY due to a 15% YoY dip in volume.

With a 5% downside from the CMP, we maintain our HOLD rating on the stock.

Relaxo Footwears’ (RLXF) revenue declined 5% YoY as the 6% YoY ASP increase was offset by a 10% YoY volume decline on subdued demand and higher competition from lower-priced unorganized players.

We downgrade the stock to HOLD.

We maintain our BUY rating on the stock as we roll over our estimates to Mar-26 and maintain our TP of Rs 950 share.

Relaxo Footwears posted a decline in revenue/PAT by 2%/3% YoY (9%/21%
miss) in 4QFY24 due to weak momentum in closed footwear and BIS
implementation. However, 810bp improvement in GM translated into 70bp
EBITDAM improvement.

Recommendation With a 12% upside potential from the CMP, we maintain our BUY rating on the stock.

We maintain our BUY rating on the stock as we roll over our estimates to Sep'25, based on which we have increased our TP to Rs 1,020/share from the earlier TP of Rs 1,050/share

With an 11% upside potential from the CMP, we maintain our BUY rating on the stock