Redtape Limited (REDTAPE)
Micro CapConsumer stocks · Micro cap · NSE
RedTape, demerged from Mirza International in 2023, is a branded lifestyle business in India. It operates four brands (RedTape, Mode, Bond Street, Ozark) across footwear, apparel, and accessories, with 669 stores in 300 cities and a significant e-commerce presence (30% revenue).
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 27/100margin compression · Rev +4% YoY · PAT +13% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹481 Cr | +3.7% | -28.9% |
| EBITDA | ₹84 Cr | +9.1% | -24.3% |
| Operating margin | 17.0% | +0 bps | +100 bps |
| PAT | ₹44 Cr | +12.8% | -37.1% |
| PAT margin | 9.2% | +74 bps | -121 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
RedTape reported strong FY26 revenue growth of 19.6% YoY to INR 2,415 Cr, with EBITDA margin expanding 151 bps to 19.0% and PAT margin up 113 bps to 9.6%. Q4FY26 revenue grew 33.8% YoY, despite a seasonal QoQ decline, showing strong exit momentum.
The company delivered robust FY26 performance with strong revenue growth and margin expansion, driven by broad-based channel and category performance. Management's focus on asset-light expansion, omnichannel reach, and category diversification supports continued growth, despite a Q4 gross margin dip due to accounting changes.
Revenue by Category (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Diversified Product Portfolio
Catering to diverse needs across footwear (formal, casual, sports) and apparel, ensuring market relevance and reducing reliance on any single category.
Innovative Designs & Technology
Utilizing cutting-edge materials and footwear technology (e.g., eTPU outsoles, Dial Lace-up Technology) to offer superior comfort and style.
Omni-Channel Reach
Penetration through a strategic mix of retail outlets (669 stores) and a strong e-commerce presence (~30% of revenue), ensuring maximum accessibility.
Brand Trust & Legacy
Access to millions of customers built upon a legacy of quality, style, and affordability, fostering deep customer loyalty and repeat purchases.
New Store Target
Company intends to open 200-250 new stores annually with store size of 500-1500 sq. ft., focusing on South and West India, and Tier-2/3 cities.
Marketplace Warehouse Expansion
One new marketplace warehouse operationalized in FY26; 300,000 sq. ft. added in existing Unnao, Kanpur warehouse.
Growing Aspirational Consumer Segment
RedTape is well-positioned to capitalize on India’s growing aspirational consumer segment, with families seeking trusted brands across categories.
Expanding Athletic & Athleisure Market
The company is poised to benefit from the expanding athletic and athleisure market in India.
Premiumisation Trend
Ongoing premiumisation trend in the Indian footwear and lifestyle industry is expected to drive sustainable, profitable growth.
Gross Margin Impact from Accounting Change
Q4FY26 Gross Margin was impacted by a decline of 321 bps YoY, owing to an accounting change for the e-commerce channel.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q4 is seasonally weaker than Q3, making YoY comparison crucial for assessing underlying performance. Full-year YoY provides a comprehensive view of annual growth and margin trends across all categories and channels.
Volume Growth
Q4FY26 volume growth of ~21% (2.8 Mn to 3.4 Mn units); FY26 volume growth of ~10% (11.5 Mn to 12.6 Mn units).
Average Selling Price (ASP) Growth
Q4FY26 ASP growth of 3% (INR 1,207 to INR 1,246); FY26 ASP growth of 8% (INR 1,102 to INR 1,190).
Gross Margin
Q4FY26 Gross Margin 43.4% (down 321 bps YoY); FY26 Gross Margin 43.1% (down 251 bps YoY). Q4 impact attributed to accounting change for e-commerce channel.
Same Store Sales Growth (SSSG)
Q4FY26 SSSG of 17.8%; FY26 SSSG of 11.9% (calculated for retail stores functional for full year, excluding new/closed stores, SIS, and venue sales).
Strong Consumer Confidence
Management states consumer confidence in branded footwear has never been stronger, with RedTape earning trust across touchpoints.
Asset-Light Operating Model
The asset-light model provides agility to expand without being burdened by capital, supporting profitable growth.
Operating Leverage Visibility
Management is increasingly seeing operating leverage from a network reaching scale, giving confidence for FY27.
Focus on Indian Consumer Needs
RedTape is focused on serving the Indian consumer's need for a trusted brand across footwear, apparel, and accessories under one roof.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| New Store Additions | 669 total stores in India; 41k sq. ft. gross addition in Q4FY26. | Progress towards the target of 200-250 new stores annually, particularly in South and West India, and Tier-2/3 cities. |
| Category Diversification | Launched eyewear and hard luggage as new accessories sub-categories. | Expansion into women's and kids' segments, and new product categories like backpacks, luggage, fragrances, and cosmetics. |
| E-commerce & Quick Commerce Growth | E-commerce contributes ~30% of revenue; #2 footwear brand on Flipkart & Myntra. | Continued growth and market share gains in e-commerce and quick commerce channels. |
| Ozark Brand Scaling | Ozark brand momentum improving in FY26; outdoor and adventure positioning resonating. | Scaling of the Ozark performance wear brand and its contribution to overall revenue mix. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
37BearishSMA20 -6.5% / mo · MACD −
Technical chart
REDTAPEdaily · 1Y · AUTO+0.7%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 41.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~6.9% over last month) — short-term momentum negative.
- RSI(14) at 41 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 26% off 52W high · 12% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 53 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 53 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 22.6%.
- Quality contributes 17/20 to the score.
Main drags
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Cash flow is weaker at 2/10; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 86th percentile of the scored universe and 90th percentile within Consumer. Main check: cash conversion is weak at 53/100.
High Trust Lite: Promoter holding is 71.8%. Key concern: Only 1 years of positive FCF.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 90th pctile, median 66 · Micro: 74th pctile, median 73
15 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 71.8%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.3%.
- ▸ROCE is 24.5%.
Trust risks
- ▸Only 1 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 27.00
- P/B
- 6.49
- EV/EBITDA
- 14.61
- Market Cap
- 6657.00Cr
Profitability
- ROE
- 26.60%
- ROCE
- 24.50%
- ROA
- 10.67%
- Dividend Y
- 1.66%
Growth (CAGR)
- Revenue 5Y
- 26.00%
- EPS 5Y
- 26.00%
- Revenue 3Y
- 18.00%
- EPS 3Y
- 19.00%
Balance Sheet
- Debt/Equity
- 0.70
- Interest Coverage
- 6.27×
- Altman Z
- 5.47
- Book Value
- 18.50
Cash Flow
- FCF Yield
- 1.34%
- FCF Positive Y
- 1/5
- OCF
- 174.00 Cr
- EPS TTM
- 4.45
Shareholding
- Promoter Hold
- 71.83%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 29%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.