Relaxo Footwears cuts adex in FY25 due to low production and sales

Relaxo Footwears, which registered a nearly 17% decline in its profit in fiscal 2025 (Rs 170 crore), reduced its advertisement because of low production levels and sales. The company ad advertising spending stood at 3% of its revenue in fiscal 2025. In FY24, the company's PAT was Rs 200 crore.

Relaxo, which makes products under 10 brands including Flite, Sparx, Bahamas, and Schoolmate, witnessed an 8% drop in its profit to Rs 56 crore in the quarter ended on 31 March 2025.

The revenue from operations of Relaxo witnessed a 7% drop on a year-on-year basis in the Quarter 4 FY2025.

Relaxo clocked revenue from operations at Rs 695 crore in Q4 FY25 compared to Rs 747 crore in the same period in fiscal 2024.

In full fiscal 2025, Relaxo’s revenue from operations declined to Rs 2,790 crore from Rs 2,914 crore in FY24.

The EBITDA stood at Rs 382 crore in FY25 compared to Rs 407 crore in FY24.

Ramesh Kumar Dua, Chairman and Managing Director, said that the topline was impacted by muted demand in the mid-range footwear segment and internal restructuring of the distribution model.

However, showing optimism on the effect of the restructuring and other investments, Dua added that “profitably will happen in the coming years”.

“Looking ahead at FY26, our priority is to drive profitable growth. While the topline is expected to remain steady with a potential upward bias, our efforts will be directed toward EBITDA enhancement, led by operational efficiencies, digital initiatives, and a sharper product focus,” he added.