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LIBERTSHOE - Liberty Shoes

📊 NSE: LIBERTSHOE 🏢 Leather / Leather Products 📅 Last Updated: 12/14/2025 9:15

📢 Recent Corporate Announcements

Liberty Shoes Q3 Revenue Up 13% to ₹180.9 Cr, Net Profit Drops 75% YoY to ₹0.59 Cr

🔴 NEGATIVE ⭐ 7/10

EARNINGS 📅 13 Feb 2026, 01:50 PM

Liberty Shoes reported a 13% year-on-year growth in revenue from operations, reaching ₹180.92 crore for the quarter ended December 31, 2025. Despite the top-line growth, net profit plummeted by 75% to ₹0.59 crore compared to ₹2.37 crore in the previous year's corresponding quarter. Profitability was significantly impacted by rising employee benefit expenses, which included a ₹1.41 crore one-time impact from new Labour Code adjustments, and higher finance costs. For the nine-month period, net profit stood at ₹5.89 crore, down from ₹7.95 crore a year ago.

Revenue from operations grew 13% YoY to ₹18,092.11 Lakh in Q3 FY26.
Net profit for the quarter fell sharply to ₹59.12 Lakh from ₹237.10 Lakh in Q3 FY25.
Employee benefit expenses increased to ₹3,664.52 Lakh, including a ₹141 Lakh impact from the new Labour Codes.
Nine-month revenue reached ₹52,794.58 Lakh, while nine-month net profit declined 26% YoY to ₹589.19 Lakh.
Credit ratings were reaffirmed at CARE BBB+ (Stable) for long-term and CARE A2 for short-term facilities.

💡 Investors should exercise caution as the company is struggling with margin compression despite healthy revenue growth. The sharp decline in bottom-line performance suggests that rising operational and regulatory costs are currently outpacing sales gains.

Liberty Shoes Files Quarterly Share Dematerialization Certificate for Q3 FY26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 22 Jan 2026, 04:40 PM

Liberty Shoes Limited has submitted its compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The filing confirms that securities received for dematerialization were processed, and physical certificates were mutilated and cancelled within the prescribed timelines. This routine administrative filing ensures the company's share registry is accurately maintained with the depositories. The certificate was issued by the company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited.

Compliance certificate submitted for the quarter ended December 31, 2025.
Confirmation that dematerialized securities are listed on the stock exchanges where earlier shares are listed.
Physical certificates were mutilated and cancelled after due verification by the depository participant.
Registrar and Share Transfer Agent (RTA) MUFG Intime India Private Limited provided the confirmation.

💡 No action is required as this is a standard regulatory filing. Investors should monitor upcoming quarterly financial results for material performance updates.

Liberty Shoes Announces Trading Window Closure from January 1, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 31 Dec 2025, 12:32 PM

Liberty Shoes Limited has officially announced the closure of its trading window for all designated persons and their immediate relatives starting January 1, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's Q3 financial results. The window will remain closed until 48 hours after the declaration of the unaudited financial results for the quarter and nine months ending December 31, 2025. This is a standard regulatory procedure to prevent insider trading before sensitive financial information is made public.

Trading window closure effective from January 1, 2026.
Closure relates to the unaudited financial results for the quarter and nine months ended December 31, 2025.
Restriction applies to Directors, Promoters, Designated Employees, and Connected Persons.
The window will reopen 48 hours after the official announcement of the financial results.

💡 No action is required as this is a routine regulatory compliance filing. Investors should await the announcement of the Q3 results to assess the company's financial performance.

Liberty Shoes Receives Reaffirmation of CARE BBB+ (Stable) and CARE A2 Credit Ratings

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 20 Dec 2025, 12:37 PM

CARE Ratings Limited has reaffirmed the credit ratings for Liberty Shoes Limited's banking facilities, indicating a steady financial profile. The long-term bank facilities have been assigned a CARE BBB+ rating with a 'Stable' outlook, while short-term facilities are rated CARE A2. This affirmation suggests the company maintains sufficient financial flexibility and continues to access credit at competitive interest rates. The 'Stable' outlook reflects the agency's expectation of consistent performance in the footwear segment.

Long-term Bank Facilities rating reaffirmed at CARE BBB+ with a Stable outlook
Short-term Bank Facilities rating reaffirmed at CARE A2
Ratings affirmation based on the company's stable financial performance and liquidity position
Company continues to enjoy favorable and competitive interest rates on sanctioned credit limits
Reaffirmation supports the company's ongoing financial flexibility for operational requirements

💡 The reaffirmation of ratings is a positive sign of stability but not a major growth catalyst; investors should maintain their positions while monitoring quarterly margin improvements.

View All LIBERTSHOE Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment, 'Footwear', which recorded a revenue of INR 675.48 Cr in FY25, representing a 6% growth compared to INR 635.77 Cr in FY24. For H1 FY26, revenue stood at INR 347.02 Cr, a 5.89% increase from INR 327.72 Cr in H1 FY25.

Geographic Revenue Split

Geographically diversified revenue stream with operations across India; however, specific percentage splits per region are not disclosed in available documents.

Profitability Margins

Operating Profit Margin improved slightly to 7.42% in FY25 from 7.30% in FY24. Net Profit Margin (excluding exceptional items) was 2.40% in FY25 compared to 2.48% in FY24. Return on Net Worth stood at 7.50% in FY25.

EBITDA Margin

PBILDT margin was 9.40% in H1 FY25 compared to 9.90% in H1 FY24. In FY23, the margin was 9.44%, an improvement of 38 bps from 9.06% in FY22, driven by better absorption of fixed overheads.

Capital Expenditure

Not explicitly disclosed as a total figure, but the company reported depreciation and amortisation expenses of INR 32.78 Cr for FY25, indicating significant existing asset base and ongoing maintenance/expansion.

Credit Rating & Borrowing

The company maintains a comfortable capital structure with an overall gearing of 0.71x as of March 31, 2024, improved from 0.81x in 2023. Working capital utilization was INR 68.13 Cr in FY24. Interest coverage ratio was 5.11x in FY23.

⚙️ Operational Drivers

Raw Materials

Leather, rubber, and synthetic chemicals are primary raw materials. The company is highly susceptible to volatility in these prices, which directly impacts the PBILDT margin.

Capacity Expansion

Current capacity is not specified in units, but the company is focusing on 'LEAP7X' in the athleisure segment to drive future volume growth.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; margins are sensitive to price fluctuations. Procurement strategies involve managing leather operations through a dedicated director, Mr. Adish Kumar Gupta.

Manufacturing Efficiency

Manufacturing is overseen by Mr. Shammi Bansal; efficiency is driven by better product mix and introduction of premium brands like LEAP7X to improve overhead absorption.

Logistics & Distribution

The company utilizes a wide distribution network and geographically diversified revenue streams to mitigate regional demand fluctuations.

📈 Strategic Growth

Expected Growth Rate

6-10%

Growth Strategy

Growth is targeted through product innovation, retail and digital expansion, and operational excellence. The company is specifically focusing on the premium athleisure segment with the 'LEAP7X' brand to improve margins and scale.

Products & Services

Footwear including leather shoes, sports shoes, and athleisure products.

Brand Portfolio

Liberty, LEAP7X.

New Products/Services

Introduction of the 'LEAP7X' brand in the athleisure segment is expected to contribute to a better product mix and higher profit margins.

Market Expansion

Strategic focus on retail and digital expansion to reach a broader consumer base.

Strategic Alliances

Exclusive long-term business arrangements with group firms Liberty Group Marketing Division (LGMD), Liberty Enterprises (LE), and Liberty Footwear Co. (LFC).

🌍 External Factors

Industry Trends

The footwear industry is highly fragmented and competitive. Trends show a shift toward athleisure and premiumization, which the company is addressing through new brand launches.

Competitive Landscape

Highly fragmented and competitive footwear market with significant pressure from both organized and unorganized players.

Competitive Moat

Moat is built on a long-standing brand legacy (Liberty) and a wide distribution network. Sustainability depends on the continued exclusive use of IPR from group entities.

Macro Economic Sensitivity

Sensitive to raw material price volatility and general consumer spending trends in the footwear industry.

Consumer Behavior

Increasing demand for athleisure and branded footwear is driving the company's strategic shift toward the LEAP7X brand.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 108 (Operating Segments) and SEBI (Prohibition of Insider Trading) Regulations, 2015.

Legal Contingencies

The company has a contingent liability of INR 23.69 Cr as of March 31, 2025, involving legal cases and other matters, up from INR 21.43 Cr in the previous year.

⚠️ Risk Analysis

Key Uncertainties

Potential termination of contracts with group entities for IPR use; volatility in raw material prices impacting margins by more than 300 bps (rating sensitivity).