Redtape Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Redtape Ltd filed with BSE on 02 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
RedTape reported Q4 FY26 revenue of INR674 crores with a gross margin of 43.4% and EBITDA margin of 19.4%, and standalone PAT of INR71 crores. For the full year, revenue grew 19.6% to INR2,415 crores, EBITDA margin expanded from 17.5% to 19%, and standalone PAT rose 32.4% to INR244 crores. Management discussed segment performance across footwear, apparel and accessories, store network expansion, inventory days, and plans to add 200 to 250 stores in the coming year.
Numbers mentioned
Revenue: INR674 crores (Q4 FY26)
p. 5
“On the specific numbers, Q4 revenue is reported at INR674 crores, a gross margin is 43.4%, EBITDA is 19.4% versus 19% standalone in Q4 FY25, and a standalone PAT of INR71 crores.”
Arvind Verma, page 5 of the filed PDF · View the filing
Full year revenue: INR2,415 crores (FY26)
p. 5
“Moving to the full year, revenue came at INR2,415 crores, a growth of 19.6% over FY25.”
Arvind Verma, page 5 of the filed PDF · View the filing
EBITDA margin: 19% (FY26)
p. 5
“Our EBITDA margins expanded from 17.5% in FY25 to 19% in FY26, and this was on the back of operating leverage and cost efficiency measures.”
Arvind Verma, page 5 of the filed PDF · View the filing
Standalone PAT: INR244 crores (FY26)
p. 5
“For the full year, standalone PAT came in at INR244 crores, up from 32.4% over FY25.”
Arvind Verma, page 5 of the filed PDF · View the filing
Same-store sales growth (SSSG): 17.8% (Q4 FY26)
p. 4
“Our SSSG, which is the same-store sales growth was 17.8% in Q4.”
Arvind Verma, page 4 of the filed PDF · View the filing
Footwear revenue contribution: 63% of FY26 revenue (FY26)
p. 4
“Footwear contributed 63% of FY26 revenue.”
Arvind Verma, page 4 of the filed PDF · View the filing
Apparel revenue contribution: 34% of FY26 revenue (FY26)
p. 4
“Our apparel has contributed to 34% of FY26 revenue, reflecting both strong consumer uptake and the benefit of new range launches.”
Arvind Verma, page 4 of the filed PDF · View the filing
Accessories revenue: INR75 crores (FY26)
p. 4
“Accessories gave us a revenue of INR75 crores throughout the year, small in absolute terms today, but growing the fastest and carrying the highest margin profile.”
Arvind Verma, page 4 of the filed PDF · View the filing
Footwear revenue: INR1,535 crores (FY26)
p. 4
“Footwear has achieved a number of INR1,535 crores.”
Arvind Verma, page 4 of the filed PDF · View the filing
Apparel revenue: INR805 crores (FY26)
p. 4
“Apparel contributed INR805 crores.”
Arvind Verma, page 4 of the filed PDF · View the filing
Exclusive showrooms: 223 showrooms across 161 cities (FY26 year-end)
p. 5
“On our network, we ended the year with 223 exclusive showrooms across 161 cities.”
Arvind Verma, page 5 of the filed PDF · View the filing
Final dividend: INR2 per equity share (FY26)
p. 5
“We are pleased to announce that the Board has recommended a final INR2 per equity share on the face value of INR2.”
Arvind Verma, page 5 of the filed PDF · View the filing
Other income: INR133 crores (FY26)
p. 10
“We see INR133 crores this year, other income, INR133 crores.”
Piyush S, page 10 of the filed PDF · View the filing
Operating cash flow: INR175 crores (FY26)
p. 10
“We are actually having the INR175 crores operating cash flow.”
Vivek Agnihotri, page 10 of the filed PDF · View the filing
Debt reduction: INR200 crores (September to March)
p. 10
“Sir, hi. If you can see, debt outstanding has considerably gone down by INR200 crores, if you can see, from the September to March now.”
Vivek Agnihotri, page 10 of the filed PDF · View the filing
Total stores: 550+ stores (current)
p. 18
“As we speak, we have crossed 550 stores as we speak.”
Arvind Verma, page 18 of the filed PDF · View the filing
Pre-Ind AS EBITDA margin: 16.4%
p. 16
“It's around 16.4%.”
Vivek Agnihotri, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Inventory days — 120-150 days
stated as an aspiration by Arvind Verma
p. 7
“Anywhere between 120 days to 150 days.”
Arvind Verma, page 7 of the filed PDF · View the filing
EBITDA margin — 16% to 19%
stated firmly by Arvind Verma
p. 12
“Yes. So, the EBITDA margin has gone up, and we are taking a very safe route of saying it should always be in the 16% to 19% range, because there are various swing factors.”
Arvind Verma, page 12 of the filed PDF · View the filing
Store additions — 200 to 250 stores · this year
stated firmly by Arvind Verma
p. 17
“We are planning to add almost 200 to 250 stores.”
Arvind Verma, page 17 of the filed PDF · View the filing
Retail revenue share — 65% to 70%
stated as an aspiration by Arvind Verma
p. 15
“But still, we would always want 65% to 70% of our business to come from retail.”
Arvind Verma, page 15 of the filed PDF · View the filing
COCO/FOFO store mix — 25% to 35% COCO, rest FOFO
stated as an aspiration by Arvind Verma
p. 17
“We'll try and keep the same ratio. It should be anywhere between 25% to 35% of COCO and rest should be FOFO.”
Arvind Verma, page 17 of the filed PDF · View the filing
Price increases — no MRP increase · three to six months
stated conditionally by Arvind Verma
p. 18
“Having said that, in the near future of three to six months, we don’t see any price increase.”
Arvind Verma, page 18 of the filed PDF · View the filing
Warehouse expansion — two more warehouses
stated firmly by Arvind Verma
p. 9
“We have seven warehouses across India, and we plan to open two more.”
Arvind Verma, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said inventory build-up supported rapid offline and warehouse expansion, and days are now declining toward a 120-150 day target.
Answered by Arvind Verma
Asked by Sameer Gupta: Why is inventory days so high compared to peers, and are there plans to reduce it?
p. 7
“The build-up to the inventory was to further help us expand very fast in the offline arena.”
Arvind Verma, page 7 of the filed PDF · View the filing
Management explained that e-commerce partners changed rebate accounting, adjusting rebates against topline rather than other income, which reduced reported gross margin without affecting PBT.
Answered by Arvind Verma
Asked by Manasvi Shah: Why have gross margins compressed while EBITDA margins improved?
p. 7
“So, the gross margin, you can see the shrinkage came because of the top-line, and not basically because anything we had done differently this year.”
Arvind Verma, page 7 of the filed PDF · View the filing
Management said margins have historically hovered in a 16-19% range and current levels reflect improved operational efficiency.
Answered by Vivek Agnihotri
Asked by Manasvi Shah: How should investors think about medium-term EBITDA margins versus FY23/24 levels?
p. 8
“So, EBITDA margins always hovers around 16% to 18%, 19%.”
Vivek Agnihotri, page 8 of the filed PDF · View the filing
Management said the company is transitioning from a family-run business to professional management.
Answered by Arvind Verma
Asked by Kanishk Gupta: Why are family members Mr. Rashid and Hussain not on the call?
p. 9
“Ultimately, we are moving from a family-run business to a professionally managed organization.”
Arvind Verma, page 9 of the filed PDF · View the filing
Management explained it primarily consists of rebates and discounts received from e-commerce platforms.
Answered by Vivek Agnihotri
Asked by Piyush S: What does the INR133 crore other income consist of?
p. 10
“Basically, the other income, if you can see, the basic component of that is the discount, rebate and discount, which you get from the e-commerce platforms.”
Vivek Agnihotri, page 10 of the filed PDF · View the filing
Management said it should be viewed as a new normal rather than a peak, expecting further improvement with scale and efficiency gains.
Answered by Arvind Verma
Asked by Subhanu Bangal: Should the current 19% EBITDA margin be seen as a peak?
p. 12
“So, no, it’s not a big margin. You can say it’s a new normal. It’s not a peak.”
Arvind Verma, page 12 of the filed PDF · View the filing
Management said 25-27% of stores are COCO with the rest FOFO, but noted that billing for all stores runs through RedTape.
Answered by Arvind Verma
Asked by Shreyans J: What is the split between COCO and FOFO stores?
p. 15
“With respect to COCO and FOFO, 25% to 27% of our stores are COCO, and the rest are running on the FOFO model.”
Arvind Verma, page 15 of the filed PDF · View the filing
Management said they are covered for the next six months via advance purchase orders and will evaluate pricing decisions after that period.
Answered by Arvind Verma
Asked by Deepak Pruthy: What is the outlook on raw material prices and possible volatility?
p. 18
“Any volatility in prices will only come to us postSeptember, and we will then evaluate and take the best decision according to that time.”
Arvind Verma, page 18 of the filed PDF · View the filing
Risks flagged
Consumer hesitation around GST transition and mixed first half demand
p. 3
“When the year started, the environment was not without its uncertainties of input costs, a mixed first half, some consumer hesitation around the GST transition, to name a few.”
Arvind Verma, page 3 of the filed PDF · View the filing
Pressure on raw material prices
p. 8
“So, not really as of now, although there is some pressure in the market, but we don’t see it,”
Arvind Verma, page 8 of the filed PDF · View the filing
Difficult demand environment in footwear industry over past 1-1.5 years
p. 18
“The first half of the last year was really tough for everybody.”
Arvind Verma, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.