Why Is Relaxo Footwears Share Price Falling? Key Reasons & Share Price Target

Mon Apr 06 2026

Relaxo Footwears share price has fallen approximately 50-52% from its 52-week high of Rs 526 to a recent 52-week low of Rs 251.60. At current levels near Rs 262-275, the stock has wiped out years of investor gains. Four consecutive trading sessions of decline shed 5.72% at one point, and the stock hit a fresh 52-week low of Rs 351.05 in late January 2026 before continuing to slide.

The Relaxo Footwears share price falling is driven by a combination of weak Q3 FY26 financials, CFO resignation in March 2026, persistent volume decline, and market leadership changes — a new co-CEO structure was appointed from April 2026, creating transition risk.

India’s largest footwear manufacturer by volume — maker of Flite slippers, Sparx sports shoes, and Bahamas sandals — is navigating its toughest market cycle in a decade. This article explains every key reason behind the decline and what analysts expect for the 2026 share price target.

About Relaxo Footwears

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Relaxo Footwears Limited was established in 1976 by Ramesh Kumar Dua and is headquartered in New Delhi. The company is India’s largest manufacturer of non-leather footwear, primarily focused on the mass and mid-market segments. Its product range includes rubber and EVA slippers, sandals, sports shoes, canvas shoes, and school shoes under brands including Flite, Sparx, Schoolmate, Bahamas, and Hawaii.

The company distributes through over 30,000 retail outlets across more than 1,700 cities and towns. At the current CMP near Rs 262, the market cap is approximately Rs 6,615-6,790 crore. The 52-week range is Rs 251.60 (low) to Rs 526 (high). Promoter holding stands at 71.27%, stable. The P/E ratio is approximately 59x on trailing earnings — still elevated given the earnings decline, which is part of the valuation concern.

Why is Relaxo Footwears share price falling? Key Reasons

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1. Q3 FY26 Net Profit Falls 19.6% — Margins Hit by Labour Costs

Relaxo Footwears reported Q3 FY26 net profit of Rs 26.54 crore, down 19.6% YoY from Rs 33.01 crore in Q3 FY25. Revenue barely grew, up just 0.17% to Rs 668.03 crore from Rs 666.90 crore. EBITDA declined 16.8% to Rs 69 crore from Rs 83 crore, with EBITDA margin falling to 10.4%.

The primary margin culprit was higher sales promotion spending and a one-time cost of Rs 5.7 crore related to the new Labour Code implementation. Employee benefit expenses rose 14.83% YoY to Rs 110.24 crore, driven by the new labour regulations. These cost pressures came at a time when revenue growth was stagnant — a toxic combination for margins.

2. CFO Prince Jain Resigns in March 2026

CFO Prince Jain resigned from Relaxo Footwears effective March 11, 2026. The company did not disclose specific reasons, stating only that Jain was “seeking external opportunities.” A CFO departure — particularly one unexplained during a period of weak earnings performance — sends a negative signal to investors about internal governance and strategic direction.

The appointment of Amit Roy as the new CFO, effective April 1, 2026, with 30+ years of experience in finance, taxation, and corporate strategy, provides some comfort. However, transition periods in CFO roles create temporary uncertainty about financial reporting and strategic continuity.

3. Management Leadership Change — Co-CEO Structure from April 2026

Relaxo Footwears appointed Gaurav Kumaar Dua and Ritesh Dua as Co-CEOs effective April 1, 2026 — re-designating the existing promoter family leadership into a formal dual-CEO structure. While this is a promoter family succession planning move, markets are cautious about leadership transitions in family-run companies. The simultaneous CFO resignation and Co-CEO restructuring creates a perception of leadership uncertainty at a critical business juncture.

4. Volume Decline Across General Trade Channel

Relaxo Footwears’ general trade channel — which constitutes the bulk of its distribution through local kirana-adjacent footwear stores, haats, and regional wholesalers — witnessed stagnant or declining volumes in FY26. The company’s management acknowledged that general trade witnessed positive momentum in Q3, but the organised retail (EBO stores), e-commerce, and large-format retail performed better.

This channel mix shift is significant. Relaxo’s core competitive advantage is its mass-market penetration through general trade. If general trade volumes stagnate while organised channels grow, the company’s cost structure and distribution model needs recalibration — a multi-year process.

5. Raw Material Cost Pressures — EVA and Rubber Prices

Relaxo’s primary raw materials are EVA (ethylene-vinyl acetate) compound and rubber, both petrochemical derivatives whose prices track crude oil. The cost of materials consumed in Q3 FY26 was Rs 229.54 crore (up 1.08% YoY), which appears modest but has been at elevated levels over the prior 12-18 months.

With crude oil now above $100 due to the West Asia conflict, raw material cost pressure for Relaxo could intensify in Q4 FY26 and Q1 FY27. The company historically passes on raw material inflation with a 2-3 quarter lag, but in a competitive market where unbranded players pressure pricing, full pass-through is not always possible.

6. Competition From Unbranded and Regional Players

Post-COVID, unorganised footwear manufacturers — particularly small regional players in Gujarat, Tamil Nadu, and Uttar Pradesh — recovered aggressively with lower price points. Relaxo’s Flite and Hawaii brands compete directly with these players in the sub-Rs 300 segment. Market share erosion at the entry-level has forced Relaxo to increase promotions (contributing to higher sales promotion costs in Q3 FY26) to defend volume.

Campus Activewear, which has given 37.5% return over three years but still outperformed Relaxo’s -56% over the same period, reflects how competitive the affordable footwear space has become.

Relaxo Footwears Latest News That Impacted the Stock

January 30, 2026: Q3 FY26 results declared — net profit Rs 26.54 crore (down 19.6% YoY), revenue flat at Rs 668 crore. EBITDA margin falls to 10.4%. Stock falls 2.14% on results day.
January 30, 2026: Stock briefly jumps 6.11% to Rs 393.15 after results, as some analysts see the miss as cyclical. Recovery short-lived.
Q2 FY26: Net profit declined 1.55% YoY to Rs 36.16 crore. Revenue fell 7.48% YoY to Rs 628.54 crore. Consecutive quarters of decline.
March 11, 2026: CFO Prince Jain resigns effective immediately. Stock falls 1.82% to Rs 299.05 on the news.
March 26, 2026: Company re-designates Gaurav Kumaar Dua and Ritesh Dua as Co-CEOs effective April 1, 2026.
March 26, 2026: Amit Roy appointed as new CFO effective April 1, 2026. The trading window closed from April 1 pending Q4 FY26 results.

Financial Performance Analysis

Relaxo Footwears’ quarterly trend shows a consistent earnings deterioration that the market is pricing in:

Key Metric	Q3 FY26 (Dec 2025)	Q3 FY25 (Dec 2024)	YoY Change
Revenue from Operations	Rs 668 Cr	Rs 667 Cr	+0.2% (flat)
Net Profit	Rs 26.54 Cr	Rs 33.01 Cr	-19.6% YoY
EBITDA	Rs 69 Cr	Rs 83 Cr	-16.8% YoY
EBITDA Margin	10.4%	12.5%	-210 bps
Employee Costs	Rs 110.24 Cr	Rs 95.99 Cr	+14.8%
Annual Revenue (FY25)	Rs 2,816.57 Cr	Rs 2,942.92 Cr (FY24)	-4.3% YoY

The annual revenue decline of 4.3% in FY25 vs FY24 is particularly concerning for a company in a growing consumer category. Track Relaxo Footwears’ live financial performance on Univest Screener.

Technical Signals: What the Charts Are Saying

Relaxo Footwears is in a sustained downtrend, trading well below all key moving averages. The stock has set four consecutive lower lows through early 2026, shedding 5.72% over a four-day streak at one point. MarketsMOJO rated the stock Strong Sell in January 2026, revised to Hold in February 2026 as oversold conditions emerged.

The 52-week range is Rs 251.60 (low) to Rs 526 (high). Key support is at Rs 250-260 (near the current 52-week low zone). Resistance is at Rs 300-320, where prior bounces have failed. A sustained move above Rs 330 with volume would signal a trend change. Download the Univest iOS App or Univest Android App to track Relaxo Footwear live.

Market Sentiment & Institutional Positioning

Promoter holding is stable at 71.27% — a strong signal of founder confidence. However, institutional interest has been declining. The high P/E ratio of approximately 39-59x (depending on the earnings base used) remains a concern at a time when profits are falling.

MarketsMOJO’s downgrade to Sell in January 2026, followed by a revision to Hold in February as valuations compressed, reflects how rapidly sentiment shifted. The dividend yield at approximately 1.1% at current prices offers some income support. The Q4 FY26 results will be critical — any sign of volume recovery and margin stabilisation could trigger a sharp technical bounce from oversold levels.

Future Outlook: Can Relaxo Footwears Recover?

Relaxo Footwears’ long-term business remains fundamentally sound. India’s footwear market is structurally growing as urbanisation increases, rural incomes rise, and first-time footwear buyers enter the organised market. Relaxo’s mass market presence — 30,000+ outlets, strong brand recognition, and low-price-point products — positions it well for rural demand recovery.

If the new Co-CEO structure stabilises leadership and the new CFO drives operational efficiency, coupled with raw material cost moderation and general trade channel recovery, earnings could recover meaningfully from FY27. The Sparx brand’s push into sports footwear and the Schoolmate brand’s back-to-school demand offer incremental growth vectors.

The contrarian view: Relaxo’s structural challenge is real. The unbranded segment’s resurgence, EVA price volatility, and distribution gaps in quick commerce and modern trade require capital-intensive solutions. A company that has declined revenues YoY for multiple years needs more than cyclical recovery — it needs strategic repositioning. The 59x P/E on declining earnings makes it difficult to argue for a margin of safety even at Rs 260-270.

Relaxo Footwears Share Price Target

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Short-Term Target (3-6 Months)

Support at Rs 250-260 (52-week low zone). A bounce to Rs 300-320 is possible from oversold levels. Bear case if Q4 FY26 disappoints: Rs 230-240.

12-Month Analyst Target

Given the consistent earnings pressure, analyst targets have been revised downward. Conservative estimate: Rs 320-380 for 12 months based on a recovery in volumes and margin stabilisation. Verify current analyst targets from NSE research reports.

Long-Term Target (2027-2028)

If Relaxo Footwears returns to revenue growth of 8-10% CAGR and EBITDA margins recover to 13-15%, the stock could re-rate toward Rs 400-500 by FY28. This requires raw material cost moderation, general trade recovery, and successful Sparx premiumisation. Track live on the Explore Univest Screener.

Conclusion

Relaxo Footwears share price is falling because of a combination of Q3 FY26 profit decline of 20%, CFO resignation in March 2026, leadership restructuring to a co-CEO model, stagnant revenue growth, raw material cost pressure, and an elevated valuation despite declining earnings. The 52-week low of Rs 251.60 is a critical support level. 12-month analyst targets suggest Rs 320-380 in a recovery scenario. *This article is for informational purposes only. Please conduct your own research and consult a SEBI-registered financial advisor before making any investment decisions.*

FAQs

Q1. Why is Relaxo Footwears share price falling in 2026?

Relaxo Footwears share price is falling due to Q3 FY26 net profit declining 19.6% to Rs 26.54 crore, revenue growth being flat at Rs 668 crore, EBITDA margin falling to 10.4%, CFO Prince Jain’s resignation in March 2026, and leadership restructuring to a co-CEO model from April 2026. Raw material cost pressure from EVA and rubber, competition from unbranded players, and weak general trade volumes are additional contributing factors.

Q2. What is Relaxo Footwear’s share price target for 2026?

Analyst targets for Relaxo Footwears have been revised downward following the Q3 FY26 results and management changes. Conservative 12-month target is Rs 320-380, depending on Q4 FY26 volume recovery and margin stabilisation. The 52-week low of Rs 251.60 is the near-term downside risk. Long-term recovery toward Rs 400-500 is projected for FY28 in a bullish scenario with rural demand revival.

Q3. Is Relaxo Footwears India’s largest footwear company?

Relaxo Footwears is India’s largest manufacturer of non-leather footwear by volume, specialising in rubber and EVA-based products. It is not the largest footwear company by revenue (Bata India and Metro Brands have higher revenues), but it leads in unit volume, particularly in the mass-market slipper and sandal categories through the Flite, Hawaii, and Bahamas brands.

Q4. What happened to Relaxo Footwear’s CFO?

Prince Jain resigned as CFO and Key Managerial Personnel of Relaxo Footwears effective March 11, 2026. The company did not disclose specific reasons, stating only that Jain was seeking external opportunities. The stock fell 1.82% on the day of the announcement. Amit Roy was appointed as the new CFO with 30+ years of experience, effective April 1, 2026.

Q5. What brands does Relaxo Footwears own?

Relaxo Footwears owns the Flite brand (mass-market rubber slippers), Sparx (sports and casual footwear, mid-premium segment), Schoolmate (school shoes), Bahamas (sandals), and Hawaii (economy segment slippers). Flite and Hawaii together dominate Relaxo’s volume, while Sparx represents the company’s push into branded sports footwear, competing with Campus Activewear and local sports shoe brands.

Q6. What is Relaxo Footwear’s promoter holding?

Relaxo Footwears’ promoter family (Dua family) holds 71.27% of the company, which has been stable — no change in the September 2025 and December 2025 quarters. The high and stable promoter holding is a signal of founder confidence in the long-term business, even as near-term earnings face headwinds. The Dua family has run the company for over four decades.

Q7. What raw materials does Relaxo Footwears use?

Relaxo Footwears primarily uses EVA (ethylene-vinyl acetate) compound and rubber as raw materials — both are petrochemical derivatives that track crude oil prices. Packing materials and synthetic fabrics are also used. Cost of materials consumed in Q3 FY26 was Rs 229.54 crore, slightly higher YoY. With crude oil above $100, raw material costs are expected to rise in Q4 FY26 and Q1 FY27.

Q8. Does Relaxo Footwears pay dividends?

Yes, Relaxo Footwears declared a dividend of Rs 3 per share in May 2025 for FY25, translating to a dividend yield of approximately 1.1% at current prices near Rs 262-275. The company has been a consistent dividend payer, though the yield is modest. At 59x P/E on declining earnings, the dividend yield does not provide substantial income support on its own.