Redtape Limited (REDTAPE)
₹114.15 +1.18% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Redtape's revenue was ₹481 Cr (+3.7% year on year, -28.8% on the previous quarter), and net profit ₹44.5 Cr (+15.2% year on year); the operating margin was 17.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹481 | +3.7% | -28.8% |
| Operating profit | ₹83.5 | +8.5% | -24.7% |
| Net profit | ₹44.5 | +15.2% | -36.5% |
| EPS (₹) | 0.80 | +14.3% | -36.5% |
| Operating margin | 17.4% | — | — |
REDTAPE delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 51.05% of the REDTAPE shares traded on NSE were taken to delivery, against the stock's own 20-session average of 40.66%. That is close to its usual level. Volume was 0.1 times its average, well below normal.
Delivery in the last 5 sessions: 47.3% · 54.4% · 37.9% · 58.4% · 51.0%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Redtape Limited has announced the closure of its trading window starting October 01, 2026, in compliance with SEBI Insider Trading Regulations. The window will remain closed for designated persons until 48 hours after the declaration of the unaudited financial results for the quarter ending September 30, 2026. The date of the Board Meeting to consider and approve these Q2 results will be communicated in due course. This is a routine statutory intimation without operational or financial impact.
- Trading window closure begins October 01, 2026
- Applies to unaudited financial results for the quarter ending September 30, 2026
- Reopens 48 hours after the declaration of the financial results
- Date for the upcoming Board Meeting to be intimated in due course
Redtape Limited has responded to a clarification query issued by the National Stock Exchange regarding a significant increase in trading volume. The company confirmed that all required disclosures under SEBI LODR Regulations have been duly made and there is no pending or undisclosed material information. Management attributed the spurt in volume to prevailing market conditions and market-driven factors.
- NSE issued clarification letter NSE/CM/Surveillance/17554 dated September 15, 2026, regarding volume spurt
- Company issued official reply on September 16, 2026
- Management states no undisclosed information exists that could influence price or volume behaviour
Redtape Limited announced that shareholders at the 5th Annual General Meeting held on August 25, 2026, approved key leadership appointments. Mr. Shuja Mirza has been re-appointed as Managing Director for a 5-year term starting April 1, 2027. Additionally, shareholders approved the re-appointment and continuation of Mr. Rashid Ahmed Mirza as Executive Chairman even after attaining 70 years of age on January 26, 2027. These approvals maintain promoter leadership continuity across the Rs 6,674 Cr market cap retail footwear and apparel company.
- Re-appointment of Managing Director Mr. Shuja Mirza approved for a 5-year term effective April 01, 2027
- Continuation of Executive Chairman Mr. Rashid Ahmed Mirza approved past age 70 (attains age 70 on January 26, 2027)
- Resolutions passed at the 5th Annual General Meeting held on August 25, 2026
- Re-appointment of Mr. Rashid Ahmed Mirza as Director liable to retire by rotation
Redtape Limited has submitted the voting results and Scrutinizer's report for its 5th Annual General Meeting held on August 25, 2026. All six resolutions were approved by shareholders with the requisite majority, including the adoption of FY26 audited accounts and declaration of a final dividend of 100% (Rs 2 per share). Key management resolutions, including the re-appointment of Mr. Shuja Mirza as Managing Director and the continuation of Mr. Rashid Ahmed Mirza as Chairman and Whole-time Director, were also approved.
- Declared and approved final dividend of 100% (Rs 2 per share) for FY26 with 99.99% votes in favour
- Re-appointment of Managing Director Mr. Shuja Mirza approved with 96.70% majority
- Continuation of Mr. Rashid Ahmed Mirza as Chairman and Whole-time Director past age 70 approved with 95.20% votes
- Total of 76,867 shareholders were on record date (August 18, 2026), with 87.75% of total voting capital polled
Redtape Limited conducted its 5th Annual General Meeting on August 25, 2026, via video conferencing with 105 members in attendance. The meeting transacted business including the adoption of FY26 audited financial statements and special resolutions regarding key directorships. Scrutinizer voting results will be declared separately in due course. The statutory and secretarial audit reports were noted to have no qualifications or adverse remarks.
- 5th Annual General Meeting conducted on August 25, 2026, via video conferencing
- A total of 105 members attended the virtual AGM
- Agenda included adoption of FY26 financials and continuation/re-appointment of key managerial directors
- Statutory and secretarial audit reports contained zero qualifications or adverse remarks
Redtape reported a strong bottom-line performance for Q1 FY27, with PAT growing 19.4% YoY to ₹47 Cr, despite a modest 3.7% growth in standalone revenue to ₹480 Cr. The company achieved a high EBITDA margin of 20.4% by maintaining pricing discipline and avoiding excessive e-commerce discounting. Management has set an aggressive expansion target of 150 new stores for FY27, with 33 already opened in Q1. Additionally, the company acquired rights for the 'Sprandi' sportswear brand, with a launch scheduled for late September 2026.
- PAT grew 19.4% YoY to ₹47 Cr, marking the company's highest-ever Q1 profit in absolute terms.
- Standalone revenue increased 3.7% YoY to ₹480 Cr, despite a soft discretionary consumption environment.
- Targeting 150 new store openings in FY27, representing a ~29% expansion over the late 2025 base of 513 stores.
- EBITDA margin reached 20.4%, supported by a gross margin of 47.5% and reduced marketplace discounting.
- Footwear remains the primary revenue driver at 56% of Q1 turnover, followed by apparel at 39%.
Redtape Limited has disclosed the audio recording of its investor conference call held on August 11, 2026. The management discussed the unaudited financial results for the quarter ended June 30, 2026, and the company's strategic outlook. This follows the company's TTM performance of ₹2,419 Cr in revenue and ₹242 Cr in PAT. No unpublished price-sensitive information (UPSI) was shared during the session.
- Investor meet held on August 11, 2026, to discuss Q1 FY27 financial results
- Company maintains a TTM revenue of ₹2,419 Cr with an OPM of 16.9%
- Strategic focus remains on expanding from 513 exclusive stores toward a 600+ store footprint
- Management continues to monitor the 75% supply chain dependency on Bangladesh
- Targeting 10-15% growth by increasing penetration in Tier 2 and 3 cities
Redtape Limited reported a 19.4% YoY increase in PAT to ₹47 Cr for Q1 FY27, marking its highest-ever Q1 profit in absolute terms. While revenue growth was modest at 3.7% YoY (₹480 Cr), the company achieved significant operational efficiency with EBITDA margins expanding by 323 bps to 20.4%. The retail footprint has grown to 702 stores across 330 cities, with a strategic shift toward high-street locations (97% of stores). The company also integrated the 'Sprandi' brand to strengthen its sports footwear portfolio across 12 countries.
- PAT increased 19.4% YoY to ₹47 Cr, representing the highest-ever Q1 profit for the company.
- EBITDA margins expanded significantly by 323 basis points to reach 20.4% in Q1 FY27.
- Total retail network reached 702 stores across 330 cities, covering approximately 16.5 lakh sq. ft.
- Revenue for the quarter stood at ₹480 Cr, contributing roughly 19.8% of the TTM revenue.
- Acquired 'Sprandi' brand, expanding the company's reach into 12 countries including Bangladesh and Nepal.
Redtape reported a 3.7% YoY revenue growth to ₹480 Cr for Q1 FY27, with a notable 17% surge in offline retail sales offsetting a 26% decline in e-commerce revenue. Profitability improved significantly as PAT rose 19.4% to ₹47 Cr, supported by EBITDA margins expanding 323 bps to 20.4%. The company added 58,000 sq. ft. of retail space during the quarter and is preparing to launch the newly acquired 'Sprandi' brand in late September 2026. Management's strategy focused on margin protection over volume in e-commerce, leading to improved average selling prices.
- Standalone PAT grew 19.4% YoY to ₹47 Cr for the quarter ended June 30, 2026
- EBITDA margins expanded by 323 bps YoY to reach 20.4% due to operational efficiencies
- Offline retail revenue grew 17% YoY to ₹356 Cr, while e-commerce revenue fell 26% to ₹103 Cr
- Sales volume increased 4% YoY from 5.9 million to 6.1 million units
- Added 58,000 sq. ft. of retail footprint, bringing the total network to 702 stores
Redtape Limited reported a modest 3.6% YoY increase in consolidated revenue to ₹481.28 Cr for Q1 FY27. Net profit grew more strongly at 15.2% YoY to ₹44.48 Cr, reflecting improved operational efficiency despite a sequential (QoQ) decline in both top and bottom lines, which is typical for the post-festive retail season. The company continues to operate under an 'Emphasis of Matter' regarding an unresolved Income Tax search from September 2025. The quarter's revenue represents approximately 20% of the TTM revenue, indicating a steady start to the new fiscal year.
- Consolidated Revenue from Operations reached ₹481.28 Cr, up 3.6% from ₹464.31 Cr in Q1 FY26.
- Consolidated Net Profit increased to ₹44.48 Cr, a 15.2% growth compared to ₹38.60 Cr in the year-ago period.
- Earnings Per Share (EPS) improved to ₹0.80 from ₹0.70 YoY, though down from ₹1.26 in the preceding March quarter.
- Purchase of Stock-in-Trade remained the largest expense at ₹249.80 Cr, representing 51.9% of revenue.
- Income Tax search proceedings initiated in September 2025 remain pending with no material impact quantified yet.
Redtape Limited reported a consolidated revenue of ₹481.28 cr for Q1 FY27, a modest 3.7% increase compared to ₹464.31 cr in the same quarter last year. Consolidated net profit grew more robustly by 15.2% YoY to ₹44.48 cr, with EPS rising to ₹0.80 from ₹0.70. Sequentially, revenue and profit declined by 28.8% and 36.4% respectively, reflecting typical retail seasonality following the March quarter. The auditor highlighted an ongoing Income Tax search from September 2025, the final impact of which remains unascertainable.
- Consolidated Revenue from Operations grew 3.66% YoY to ₹481.28 cr.
- Consolidated Net Profit increased 15.23% YoY to ₹44.48 cr.
- Earnings Per Share (EPS) improved to ₹0.80 from ₹0.70 in Q1 FY26.
- Total Expenses for the quarter stood at ₹436.02 cr, compared to ₹458.68 cr in the year-ago period.
- Income Tax search proceedings initiated in September 2025 remain pending with no written communication on outcomes yet.
Redtape Limited reported a consolidated revenue of ₹481.28 Cr for the quarter ended June 30, 2026, representing a modest 3.6% YoY growth from ₹464.31 Cr. Net profit showed stronger growth, rising 15.2% YoY to ₹44.48 Cr, compared to ₹38.60 Cr in the year-ago period. The company maintained an EPS of ₹0.80 for the quarter, up from ₹0.70 YoY. A key overhang remains the unresolved Income Tax search proceedings initiated in September 2025, for which the final impact is currently unascertainable.
- Consolidated Revenue from Operations reached ₹481.28 Cr, a 3.6% increase over Q1 FY26.
- Consolidated Net Profit for the quarter stood at ₹44.48 Cr, up 15.2% from ₹38.60 Cr YoY.
- Basic and Diluted EPS improved to ₹0.80 from ₹0.70 in the corresponding quarter of the previous year.
- Total consolidated expenses were managed at ₹436.02 Cr against a total income of ₹496.42 Cr.
- Management confirmed that Income Tax search proceedings from September 2025 are still pending a final outcome.
Redtape Limited has scheduled a management interaction with institutional investors and analysts in Mumbai on August 12, 2026. The meeting is part of the Emkay Confluence Annual Flagship Conference and will involve both group and individual sessions. The company, which reported a TTM revenue of ₹2,419 Cr and an OPM of 16.9%, stated that discussions will be limited to publicly available information. Investors should note the company's current focus on expanding its retail footprint from 513 stores toward a 600+ target.
- Management meeting scheduled for August 12, 2026, between 10:00 am and 4:00 pm
- Participation in the Emkay Confluence Annual Flagship Conference at Grand Hyatt, Mumbai
- Company maintains a TTM revenue of ₹2,419 Cr and PAT of ₹242 Cr
- Strategic target to increase own-website online sales from 5% to 20%
- Current retail footprint of 513 exclusive stores with a pan-India expansion goal
Redtape Limited has scheduled its Q1 FY27 financial results announcement for August 10, 2026, followed by an earnings call on August 11, 2026. The company now operates 669 stores across 300 cities, a significant increase from the 513 stores reported in late 2025. Investors will likely focus on the management of the 75% supply chain dependency on Bangladesh and the progress of shifting online sales to the company's own website. With a TTM revenue of Rs 2,419 Cr and a P/E of 30.9, the market is pricing in steady growth despite geopolitical risks.
- Q1 FY27 financial results to be announced on August 10, 2026
- Earnings conference call scheduled for August 11, 2026, at 10:00 AM IST
- Retail footprint expanded to 669 stores across 300 cities in 20 states
- Maintains asset-light model with 75% of requirements sourced from vendor partners
- Management to discuss performance following a TTM PAT of Rs 242 Cr
Redtape Limited has scheduled its 5th Annual General Meeting (AGM) for August 25, 2026, to approve a final dividend of Rs 2 per share (100% of face value) for FY 2025-26. The company is seeking shareholder approval for the re-appointment of Mr. Shuja Mirza as Managing Director for a 5-year term starting April 2027, with a remuneration cap of Rs 12 crore per annum. This remuneration represents approximately 4.97% of the FY26 Net Profit of Rs 241.6 crore. The board also proposes the continuation of Mr. Rashid Ahmed Mirza as Chairman beyond the age of 70, ensuring leadership continuity.
- Proposed final dividend of Rs 2 per share (100%) for the financial year 2025-26
- Managing Director remuneration capped at Rs 12 crore per annum plus Rs 24 lakh medical allowance
- AGM scheduled for August 25, 2026, with a voting cut-off date of August 18, 2026
- FY26 annual revenue reported at Rs 2,419.31 crore with a net profit of Rs 241.6 crore
- Proposed re-appointment of MD for a 5-year tenure from April 1, 2027, to March 31, 2032
Financial Performance
Revenue Growth by Segment
Overall revenue grew 9.7% in FY25 to INR 2,022 Cr from INR 1,843 Cr in FY24. Growth is driven by both footwear (26-year vintage) and garments (15-year vintage). Standalone revenue for H1 FY26 reached INR 975.41 Cr, a 12.97% increase from INR 863.40 Cr in H1 FY25.
Geographic Revenue Split
The company has a pan-India presence with around 600 retail stores across 328 cities in 23 states. Most sales are domestic with negligible exports. Revenue is increasingly coming from Tier 2 and 3 cities as the company expands beyond its strong metro and Tier 1 base.
Profitability Margins
Gross margins improved to 48.59% in FY25 from 47.66% in FY24. Reported PAT margin was 8.4% in FY25 (INR 170 Cr) compared to 9.6% in FY24 (INR 176 Cr). Standalone PAT for H1 FY26 was INR 66.14 Cr, up 18.72% YoY, with a PAT margin of 6.78%.
EBITDA Margin
EBITDA margin stood at 17.1% in FY25 (INR 345.7 Cr) compared to 17.6% in FY24. For H1 FY26, standalone EBITDA margin improved to 17.28% from 16.02% in H1 FY25, reflecting better cost efficiency and retail traction.
Capital Expenditure
The company maintains a moderate capex profile. While specific annual totals aren't aggregated, cash accruals above INR 250 Cr per annum are expected to comfortably cover ongoing store expansions and moderate manufacturing maintenance.
Credit Rating & Borrowing
CRISIL maintains a 'Positive/Stable' outlook. Adjusted interest coverage was 6.4 times in FY25, down from 8.9 times in FY24 due to higher debt. Standalone borrowings as of Sept 2025 included INR 20.45 Cr long-term and INR 577.32 Cr short-term debt.
Operational Drivers
Raw Materials
Finished footwear and garments are the primary cost drivers. Approximately 75% of products are sourced via contract manufacturing, while 25% are manufactured in-house using leather and textile components.
Import Sources
75% of products are imported through contract manufacturing from Bangladesh, Myanmar, and Nepal. The remaining 25% is produced in Unnao, Uttar Pradesh, India.
Key Suppliers
Not disclosed by specific name, but the company utilizes a network of contract manufacturers in Bangladesh and domestic vendors in India. Most suppliers are now BIS certified.
Capacity Expansion
The company operates one manufacturing unit in Unnao, UP, producing ~25% of requirements. Expansion is primarily retail-focused, growing from 513 exclusive stores in late 2025 toward a 600+ store pan-India footprint.
Raw Material Costs
Gross profit of INR 983.51 Cr on INR 2,018.46 Cr revenue in FY25 implies COGS (including raw materials and outsourced manufacturing) of ~51.4% of revenue.
Manufacturing Efficiency
The company follows a 'capital-light' model by collaborating with vendor partners for 75% of its needs, enabling rapid turnaround from design to market and cost optimization.
Logistics & Distribution
Distribution is handled through a mix of ~70% Exclusive Brand Outlets (EBOs) and ~30% Shop-in-Shop/Multi-brand outlets, with online channels contributing over 30% of total sales.
Strategic Growth
Expected Growth Rate
10-15%
Growth Strategy
Growth will be achieved by increasing penetration in Tier 2 and 3 cities, optimizing store formats for profitability, and shifting online sales from third-party marketplaces to the company's own website (targeting an increase from 5% to 20% of online share).
Products & Services
Footwear, ready-made garments, and accessories for men, women, and children.
Brand Portfolio
REDTAPE, MODE (Redtape London), and BOND STREET (Redtape London).
New Products/Services
Expansion of the 'Lifestyle Portfolio' to include more garment varieties and accessories to complement the core footwear business.
Market Expansion
Targeting deeper penetration in 328 cities across India, specifically focusing on emerging markets in Tier 2 and 3 locations.
Market Share & Ranking
Prominent player in the domestic retail footwear segment with a 26-year brand vintage; specific market share % not disclosed.
Strategic Alliances
Collaborates with major e-commerce platforms (contributing 30% of sales) and utilizes shop-in-shop arrangements for 30% of its physical retail footprint.
External Factors
Industry Trends
The industry is shifting toward organized retail and e-commerce (30% of REDTAPE sales). New BIS regulations (Aug 2024) favor organized players like REDTAPE whose suppliers are already certified, creating a barrier for unorganized competitors.
Competitive Landscape
Faces intense competition from international brands and a highly fragmented unorganized sector which holds a large market share in India.
Competitive Moat
Strong brand recall and a 26-year vintage provide a competitive edge. The 'capital-light' sourcing model and high e-commerce penetration (30%) are sustainable advantages against traditional brick-and-mortar retailers.
Macro Economic Sensitivity
Highly sensitive to domestic consumer spending and urban/semi-urban discretionary income trends.
Consumer Behavior
Increasing demand from GenZ and a shift toward online shopping; the company is responding by targeting 20% of online sales through its own D2C website.
Geopolitical Risks
Significant exposure to Bangladesh's political environment; unrest there directly impacts the primary manufacturing hub for 75% of the company's products.
Regulatory & Governance
Industry Regulations
Bureau of Indian Standards (BIS) norms for footwear imports became effective August 1, 2024. REDTAPE has a competitive advantage as most of its international suppliers are already BIS certified.
Environmental Compliance
The company has initiated sustainability initiatives as part of its brand positioning, though specific ESG costs are not disclosed.
Taxation Policy Impact
Effective tax rate is standard corporate rate; standalone current tax liabilities were INR 3.8 Cr in Sept 2024, reduced to nil in the Sept 2025 balance sheet snapshot.
Legal Contingencies
Not disclosed in the provided documents; management reports no adverse findings in Internal Financial Control System checks by Grant Thornton.
Risk Analysis
Key Uncertainties
Liquidation of high inventory (INR 1,221 Cr) without heavy discounting is a key uncertainty that could impact margins by 2-3%.
Geographic Concentration Risk
100% of revenue is concentrated in the Indian domestic market, making it vulnerable to local economic downturns.
Third Party Dependencies
75% dependency on third-party contract manufacturers in foreign territories (Bangladesh/Myanmar) for product supply.
Technology Obsolescence Risk
Risk of falling behind in e-commerce technology; mitigated by the strategy to grow the in-house website sales to 20% of the online mix.
Credit & Counterparty Risk
Moderate risk; 30% of sales through e-commerce platforms and SIS/MBOs involve receivables from platform operators and large retailers.
