NSE: REDTAPE · BSE: 543957 · ISIN INE0LXT01019
Redtape Limited stock analysis
Redtape Limited ranks #1477 in the TickerSutra evidence-ranked universe with a score of 53/100 and 85% data confidence. The latest captured fundamentals show ROCE of 24.5%, quarterly sales growth of 3.6% and quarterly profit growth of 15.2%.Monitor only
INVESTMENT EVIDENCE
What supports—and challenges—the thesis
Evidence in favour
- ROCE is 24.5%
- 18.1% three-year sales CAGR
- Institutional ownership is rising
- CWIP indicates an active capacity pipeline
- No promoter shares are reported as pledged
Risks and constraints
- Debt/equity is above 0.5×
- CFO/EBITDA is below 0.6×
Still unresolved: Related-party exposure · Broad media sentiment
FINANCIAL TRAJECTORY
Recent operating history
| Period | Revenue | Operating profit | Net profit | Operating margin |
|---|---|---|---|---|
| 2022 | ₹303cr | ₹47cr | ₹29cr | 16.0% |
| 2023 | ₹1,468cr | ₹244cr | ₹142cr | 17.0% |
| 2024 | ₹1,843cr | ₹319cr | ₹176cr | 17.0% |
| 2025 | ₹2,021cr | ₹220cr | ₹170cr | 11.0% |
| 2026 | ₹2,419cr | ₹353cr | ₹241cr | 15.0% |
| TTM | ₹2,436cr | ₹414cr | ₹246cr | 17.0% |
EXCHANGE EVENT TRIGGERS
Latest corporate disclosures
MANAGEMENT COMMENTARY
Signals from filed documents
Stronger inventory availability helps our stores and online channels stay prepared when consumer demand accelerates, especially during festive periods, wedding seasons and regional expansion phases. During the year, our inventory build-up was a readiness measure. It supported new store openings, tier 2 and tier 3 expansion, seasonal demand and base stock requirements for marketplace warehouses.
It is important to acknowledge that actual outcomes may differ significantly from those indicated in these statements. Several key factors could influence the Company’s operations, including the availability and pricing of raw materials, cyclical demand and pricing trends in its primary markets, changes in government regulations and tax regimes, economic developments both in India and in the countries where the Compa
Profitability improved meaningfully during the year with Standalone EBITDA stood at ` 483 crore (including other income of ` 133 crore). EBITDA margins expanded to 19.0% and improved cost controls allowed the business to turn higher sales into robust bottom-line growth, with net profit rising to ` 244 crore with an upstick of 32.4% year on year-on-year basis. Further, our adept management of operational excellence wi
Full cooperation extended to authorities; the process is described as ongoing and routine. Online Channel Margin Pressure E-commerce platforms have revised billing and commission structures, compressing gross margins on the online channel. Operating expense reductions on e-commerce (lower commissions) offset gross margin decline, maintaining EBITDA margins.
FY 2025-26 revenue grew by almost 20%, while EBITDA and PAT margins showed traction. Three-year revenue CAGR stood at 18.3%, reflecting the benefit of scale, store maturity and operating leverage. Gross margins have also remained broadly around the mid-40% range over recent years, supported by brand-led pricing, scale-led sourcing and disciplined stock management.
Summer merchandise is planned for 8–9 months of coverage, while autumn-winter inventory is maintained at 3 months. Geographic expansion into South, East, and West India further diversifies seasonal risk, as these markets are less sensitive to North India’s weather cycles, with online sales providing an additional buffer against localised demand fluctuations. BUSINESS OUTLOOK RedTape Limited enters the second half of
This model enables rapid turnaround from design to shelf - a critical competitive advantage given the company’s high-velocity product introduction strategy. Backward Integration Contract manufacturing partners are progressively undertaking backward integration - sourcing raw materials in-house rather than procuring externally. This reduces input costs and gives RedTape greater pricing stability and supply chain contr
Online business provides pan-India coverage and offsets regional seasonality effects. Taxation / Regulatory Compliance Income tax survey conducted across offices, warehouses, and stores in September 2025 created operational uncertainty. Management confirmed no penalties or adverse remarks resulting from the survey.
• Maintaining robust financial reporting processes supported by effective internal controls, independent oversight and high standards of integrity to ensure the accuracy, reliability and credibility of financial statements. • Fostering proactive and meaningful engagement with shareholders, institutional investors, analysts and other stakeholders through transparent communication and constructive dialogue on matters o
Details of the related party transactions are disclosed in the Financial Statements, which forms an integral part of this Annual Report. The policy on Related Party Transactions, as approved by the Board is available on the website of the Company at https://about.redtape.com/ assets/investor-pdf/code_of_conducts_and_policies/ Related-Party-Transaction-Policy.pdf 26. HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATION
These statements are based on assumptions and expectations of future events and are subject to risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied in such forward-looking statements due to several factors, including but not limited to: Demand and supply dynamics in domestic and international markets, Volatility in raw material costs and availabil
Untapped Potential in Tier II & III Cities Tier II and III cities are emerging as new consumption hubs, with urbanization deepening and demand for organized apparel expanding well beyond current metropolitan concentration. Dominance of the Unorganized Retail Sector Unorganized retail still accounts for an estimated 55% of apparel sales as of 2026, creating persistent pricing pressures for organized players and limiti
HOW TO READ THIS PAGE
Evidence, freshness and limitations
What does the TickerSutra score mean?
The score ranks captured evidence across financial quality, growth, moat and margins, regulatory catalysts, governance, institutional trend and valuation comfort. It is a research-prioritization tool—not a buy recommendation or price target.
Which sources support this page?
Financial history, ownership and pledge data, NSE and BSE filings, annual reports and available earnings-call transcripts are combined here. Use the source trail and original exchange document before relying on a decision-critical fact.
Why can an item be unresolved?
Unresolved means the current captured source window did not provide enough evidence for that check. It does not establish that a risk or relationship is absent.
Maintained by TickerSutra Research · Snapshot updated 29 Sept 2026 · Read the methodology · Read the disclaimer
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