REDTAPE
Micro CapRedtape Limited
Consumer
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.
Investable fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
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 31 Mar 2026
Excellent · 90/100Rev +34% YoY · PAT +71% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹676 Cr | +33.6% | -14.1% |
| EBITDA | ₹111 Cr | +146.7% | -24.5% |
| Operating margin | 16.0% | +700 bps | -300 bps |
| PAT | ₹70 Cr | +70.7% | -33.3% |
| PAT margin | 10.4% | +226 bps | -298 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
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.
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
53NeutralSMA20 +8.2% / mo
Technical chart
REDTAPEdaily · 6M+6.2%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 50. Wait for confirmation.
- SMA20 rising (~5.6% over last month) — short-term momentum positive.
- RSI(14) at 50 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 16% off 52W high · 24% 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, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy 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 60.8%.
- Quality contributes 15/20 to the score.
Main drags
- Cash flow is weaker at 2/10; verify the latest quarterly trend.
- Valuation is weaker at 15/30; verify the latest quarterly trend.
- Growth is weaker at 16/25; 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
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 57th percentile of the scored universe and 56th percentile within Consumer. Main check: cash conversion is weak at 43/100.
Healthy Trust Lite: Promoter holding is 71.8%. Key concern: Only 0 years of positive FCF.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 56th pctile, median 67 · Micro: 40th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed 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.
- ▸ROCE is 21.7%.
- ▸7/8 recent quarters had positive YoY revenue growth.
Trust risks
- ▸Only 0 years of positive FCF.
- ▸Debt/equity is 1.08.
- ▸ROCE trend is -7.6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 30.80
- P/B
- 7.24
- EV/EBITDA
- 18.71
- Market Cap
- 7420.00Cr
Profitability
- ROE
- 26.60%
- ROCE
- 24.10%
- ROA
- 10.45%
- Dividend Y
- 1.49%
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
- 5.10×
- Altman Z
- 5.73
- Book Value
- 18.50
Cash Flow
- FCF Yield
- 1.21%
- FCF Positive Y
- 1/5
- OCF
- 174.00 Cr
- EPS TTM
- 4.35
Shareholding
- Promoter Hold
- 71.83%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 52%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.