1. GST rate cut to 5% on sub-₹2,500 footwear - The GST rate on footwear priced below ₹2,500 was reduced from 12% to 5%, covering more than 98% of Relaxo's portfolio. This reverses the tax increase that management identifies as the main cause of prior revenue decline, and the company states it is "just a matter of time" to return to the old 10%+ growth trajectory.
2. Distribution transformation with DMS and Parivaar App - A shift from primary wholesale to secondary retail focus is underway, with the Relaxo Parivaar App now capturing 60% of secondary sales and 70,000+ retailers onboarded. Distributor count rose from 550 to 630 over the full year, and management expects volume improvement from H2 FY26 driven by this revamp.
3. 100 new EBOs in FY27 - The company plans to open 100 new Exclusive Brand Outlets in FY27, adding to the current 420, with \~30-40% targeted in H1 and the majority by December 2026. At ₹30-35 lakhs per outlet, the ₹30-35 cr programme is margin-accretive, with a redesigned format already trialled successfully for higher-value product sales.
4. Back-end cost efficiencies and 1%+ margin expansion - Management guided \~1% EBITDA margin improvement for FY27 over FY26's 13.8%, driven by plant-level cost reduction, value engineering, and automation. ROCE is expected to improve 2-3% over the coming period from these efficiencies and EBITDA gains.
5. E-commerce and quick commerce build-out - E-commerce contributes 10% of revenue, now operating on a Brand-As-Seller model with a segregated product line to avoid channel conflict, while quick commerce tie-ups with Blinkit and Zepto are showing good early sales. Ad spend is shifting from television to digital and performance marketing on Amazon and Flipkart, directly supporting online channel growth.
6. Export expansion with UK opportunity - Exports contribute 5% of revenue across \~37 countries, and the company is actively exploring UK export opportunities for EVA footwear and Sparx sports shoes following a trade deal. Surplus capacity is available to serve export orders, providing fixed-cost leverage on existing assets.
7. Group captive solar power project - An SPV (Clean Max MUOI Private Limited) was incorporated on 13 June 2026, with Relaxo investing up to ₹2.50 cr for a \~26% stake to supply renewable power to its Haryana manufacturing facilities. The investment is expected to complete by August 2026 and will lower energy costs at the company's largest production base.