Relaxo Footwears Dividend ₹3.50 (FY26) — Yield, Record Date, History

Relaxo Footwears Limited is India's largest footwear manufacturer by volume, with a capacity of roughly 10.5 lakh pairs per day across plants in Haryana, Rajasthan and Uttarakhand. It operates in the mass and value segment through four well-known brands – Relaxo, Sparx, Flite and Bahamas – selling via distributors, exclusive brand outlets, e-commerce and modern trade.

Incorporated in 1984 and listed on the NSE (RELAXO) and BSE (530517), the company carries ISIN INE131B01039 and a face value of ₹1. Despite category leadership, Relaxo sits in the mid-cap bracket with a market capitalisation near ₹7,268 crore as of early October 2026. Its value-segment positioning makes volumes sensitive to rural demand and raw-material (EVA, rubber) price swings.

Relaxo Footwears dividend per share (face value ₹1). The company has paid a dividend every year, and has lifted the payout from ₹2.50 to ₹3.50 over five years – even as earnings moved sideways.

Note: Figures are on the current ₹1 face value. Dividend percentages declared before the share sub-division (pre-FY18) were on a higher face value and are not directly comparable. Source: NSE/BSE corporate-action records.

The eye-catching figure in any Relaxo Footwears dividend headline is 350% – but that is simply ₹3.50 expressed against a ₹1 face value. For a shareholder buying at the market price of about ₹288.50, the cash return is a slim 1.21%, below a typical savings account.

The more telling point is direction. Relaxo has raised its dividend per share by 40% since FY21, yet FY26 net profit of ₹179 crore is still about 23% below its FY22 peak of ₹233 crore. The dividend is rising on flat earnings and a 62% three-year fall in the share price. For income seekers, that combination – a secure but small payout on a de-rating stock – is the real Relaxo story.

Management has guided for an operating EBITDA margin improvement of more than 100 basis points over FY26's 13.8% in the coming year, driven by product premiumisation and back-end efficiency. Q1 FY27 showed early traction: revenue rose 7.7% year-on-year to ₹705 crore with margins at 15.4%.

For the Relaxo Footwears dividend, the outlook is one of stability rather than surprise. The company is debt-free, cash-generative and holds roughly ₹460 crore in cash and investments, so the payout is easily funded. Whether the dividend grows meaningfully depends on an earnings recovery; on current profit levels, large step-ups would push the payout ratio higher. Any forward statement here is based only on disclosed guidance, not a prediction.

At its board meeting on 28 May 2026, the Board of Directors of Relaxo Footwears Limited recommended a final dividend of ₹3.50 per equity share (350% of the ₹1 face value) for the financial year ended 31 March 2026, subject to shareholder approval at the forthcoming Annual General Meeting.

The disclosure was made under Regulation 30 and Regulation 42 of the SEBI (LODR) Regulations, 2015. The Board also fixed the record date as 18 September 2026 to determine members entitled to the dividend. As a final dividend, payment follows AGM approval, within the statutory timeline. The AGM date was to be intimated separately. These are the only dividend facts disclosed by the company; all ratios below are computed from public financial data.

This is where the Relaxo Footwears dividend needs a reality check. The 350% figure is a face-value illusion: it describes the dividend relative to ₹1, not to what you pay for the share.

At 1.21%, Relaxo's yield sits among the lowest in its footwear peer group and well below large-cap PSU payers. The yield has crept up only because the share price has fallen, not because the dividend is generous. Market price sourced from Google Finance.

On consistency, Relaxo Footwears qualifies clearly as a Consistent Payer. It has distributed a dividend every year through the cycle, with no cuts and no suspensions, and has steadily raised the per-share amount from ₹2.50 (FY21) to ₹3.50 (FY26).

The nuance is quality over quantity. The 40% rise in dividend per share over five years has outpaced earnings, which actually fell over the same period. There have been no special dividends; every payout has been an ordinary final (or, in FY20, interim) dividend funded from operations. For income investors the record is dependable – but the growth in the payout reflects management policy rather than a surge in profit.

The operating-leverage picture explains the stagnation. Over FY22 to FY26, revenue barely moved – a 0.5% CAGR from ₹2,653 crore to ₹2,702 crore – while net profit fell at a -6.3% CAGR, from ₹233 crore to ₹179 crore.

FY26 was a margin-led recovery: PAT rose 5.3% on lower revenue as EBITDA margin improved to 13.8%. But profit remains below FY22 and FY24 levels – earnings have not grown in five years. Source: consolidated filings.

Cash is where Relaxo Footwears looks genuinely healthy. In FY26 it generated ₹348 crore of operating cash flow – nearly double its ₹179 crore reported profit – thanks to high depreciation (₹157 crore) and disciplined working capital.

After capex of about ₹137 crore, free cash flow was a comfortable ₹212 crore. Against the ~₹87 crore dividend outflow, free cash flow covers the payout 2.4 times and operating cash flow 4.0 times. The dividend is funded entirely from current cash generation – not from reserves, asset sales or borrowing. One caveat: free cash flow has been volatile, turning negative in heavy-capex years (FY22, FY24), so coverage can compress when the company invests. Source: consolidated cash-flow statement.

On our four-test scorecard, the Relaxo Footwears dividend screens as Sustainable:

All four tests pass comfortably, and the balance sheet is debt-free – so the question for Relaxo Footwears is not can it pay but is a 1.2% yield worth it. Sustainability is high; attractiveness as an income play is modest because the payout is small relative to the share price.

Among footwear peers, Relaxo Footwears offers a middling yield (~1.2%) but the weakest return on equity (8.1%) of the branded players. Metro Brands, Campus and Redtape all earn far higher ROE, while Bata matches Relaxo on returns. The dividend yields across the sector are uniformly low – none of these are classic income stocks. Source: peer screens, Aug–Sep 2026.

With promoters holding about 71.30% of Relaxo Footwears, the bulk of the dividend flows to the promoter group. Of the estimated ₹87 crore total outflow, roughly ₹62 crore accrues to promoters and about ₹25 crore to public and institutional shareholders.

This concentration is routine for a founder-led company and is not a red flag by itself – promoters and minority holders receive the same ₹3.50 per share. It is, however, worth noting in the capital-allocation debate: with the stock de-rated and ROE at ~8%, a high cash payout richly rewards a controlling family while minority holders have seen the share price fall. Promoter holding per the latest shareholding pattern.

Since FY2020-21, dividends are taxed in the hands of the investor at their applicable income-tax slab rate. The company deducts TDS at 10% under Section 194 only when total dividend paid to a resident exceeds ₹5,000 in a financial year (20% without a valid PAN).

Worked example – 1,000 Relaxo shares:

Illustrative only; tax depends on individual circumstances. This is not tax advice.

• Earnings stagnation: FY26 profit is ~23% below the FY22 peak and revenue has been flat for five years, limiting dividend-growth capacity.
• Low real yield: At ~1.2%, the payout offers little income cushion and trails many fixed-income alternatives.
• Valuation risk: A P/E near 40 on muted earnings leaves the stock vulnerable to further de-rating, which has already cut the price ~62% over three years.
• Raw-material & demand sensitivity: Value-segment volumes depend on rural demand and EVA/rubber input costs, pressuring margins.
• Competitive intensity: Peers such as Campus and Metro Brands earn far higher returns on equity, highlighting Relaxo's weaker capital efficiency.

• Volume & realisation recovery: Watch pairs sold and average realisation per pair for signs of a genuine demand turnaround.
• EBITDA margin trajectory: Track whether management's 100+ bps margin-expansion guidance for FY27 is delivered.
• Payout ratio trend: A payout climbing above 50% on flat earnings would signal income distribution over reinvestment.
• Capital allocation: With ~₹460 crore cash and a depressed price, watch for buybacks, capex plans or special dividends.
• Return ratios: Monitor ROE/ROCE for a move back toward historical mid-teens levels.

The Relaxo Footwears final dividend of ₹3.50 per share is a secure, well-covered payout from a debt-free, cash-rich market leader – funded 2.4 times over by free cash flow and backed by ₹460 crore of liquidity. On sustainability, there is little to worry about.

The honest caveat is the face-value illusion: a "350%" headline translates to a real yield of only 1.21%. The dividend has grown 40% in five years while profit has shrunk and the share price has fallen sharply. For a value-segment leader with ROE down to ~8%, the dividend is a reliable but minor part of the story – the bigger variables are the earnings recovery and how management deploys its cash. Positives, negatives, risks and monitoring points are laid out above for readers to weigh independently.