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Motilal Oswal's research report on Relaxo Footwears
Relaxo Footwears’ (RLXF) 2QFY26 results reflect persistent volume pressure amid muted demand trends and transient impact from the GST implementation. However, margins remained resilient, with EBITDA margin stable YoY on the back of robust cost controls. Management indicated that the GST transition impact could continue till Dec’25, with distributors focusing on clearing old inventory. However, it remains hopeful of recovery from 4Q onward as GST rationalization improves the company’s price competitiveness (vs. unorganized players).
Outlook
Despite recent corrections, valuations remain rich at ~50x FY27 P

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