Are Relaxo Footwears Ltd latest results good or bad?

The latest financial results for Relaxo Footwears Ltd indicate a challenging operational environment, characterized by persistent revenue declines and margin pressures. In the quarter ended December 2025, the company reported net sales of ₹666.90 crores, reflecting a marginal year-on-year growth of 0.17%. However, this slight uptick comes against a backdrop of a significant decline in standalone net profit, which decreased by 19.60% compared to the previous year, highlighting ongoing profitability challenges. The operating profit margin for the same period stood at 12.50%, which represents a contraction of 2.11% from the previous year. This decline in margins suggests that the company is facing difficulties in managing costs and passing on price increases in a competitive market. The operating profit (PBDIT) was reported at ₹69.39 crores, which also reflects a decrease of 16.79% year-on-year. Overall, the financial data underscores the mounting pressures on Relaxo Footwears, with the company experiencing a revision in its evaluation amidst these operational challenges. The combination of declining profitability metrics and a competitive landscape raises concerns about the sustainability of its current business model. The company’s ability to navigate these issues will be crucial for its future performance.