Redtape Limited is a prominent Indian company operating as a fashion and lifestyle brand. Its operations are divided into two primary segments: the Shoe Division and the Garments and Accessories (Gar & Acc) Division. The company offers a comprehensive and diversified product line, ranging from footwear to a wide array of casual and semi-formal apparel. This includes items such as shirts, t-shirts, ethnic wear, trousers, denims, sweaters, jackets, belts, socks, wallets, and handkerchiefs. Redtape proudly owns a portfolio of established brands, including RedTape, Mode by RedTape Jeans, and Bond Street by RedTape.
With a brand recall spanning over 26 years, Redtape emerged as the first Indian footwear brand in 1996 to establish a significant presence in global markets, notably the UK. The company strategically expanded into men's clothing and accessories in 2006. Today, it adeptly caters to the fashion needs of women and children as well, offering clothing and accessory categories for these demographics. The brand has successfully positioned itself as a complete family fashion destination, delivering international styles and world-class quality across a multitude of product categories suitable for all age groups.
Redtape boasts a significant global operational footprint, with its products available in approximately 37 countries. These include key markets such as India, the United Kingdom, the United States, Australia, Turkey, the United Arab Emirates (UAE), France, Germany, West Asia, and South Africa, among others.
In India, Redtape is recognized as a trusted leading Fashion & Lifestyle brand, supported by an extensive network of over 435 opulent stores spread across the PAN India region. The company employs a robust distribution strategy, making its products accessible to customers through both its physical retail stores and a strong online presence, ensuring multiple touchpoints for engagement.
The company's product offerings are marketed under distinct brands: RedTape, RedTape Athleisure, Mode By RedTape, and Bond Street by RedTape. This multi-brand strategy is instrumental in allowing Redtape to cater to diverse customer segments and price points within the competitive fashion and lifestyle market.
Redtape Limited was officially incorporated on December 8, 2021, as a wholly-owned subsidiary of Mirza International Limited. The company's current structure is a result of a Composite Scheme of Arrangement involving RTS Fashions Private Limited, Mirza International Limited, and Redtape Limited, along with their respective shareholders and creditors.
This scheme facilitated two key transformations:
a) The amalgamation of RTS Fashions Private Limited with Mirza International Limited.
b) The de-merger of the Branded Business/Redtape Business of Mirza International Limited into Redtape Limited on a going concern basis.
The Scheme was duly sanctioned, and the Branded Business/Redtape Business of Mirza International Ltd was demerged into Redtape Limited effective from February 25, 2023. Following the implementation of this Scheme of Arrangement, Equity Shares of Redtape Limited were allotted in a 1:1 ratio to all shareholders of Mirza International Limited. Consequently, the Equity Shares of Redtape Limited commenced trading on the stock exchanges on August 11, 2023.
As of the latest available data (July 2025), Redtape Limited reports a market capitalization of ₹7,765 crore, indicating a decrease of 23.4% over the past year. The company's revenue stands at ₹2,020 crore, with a profit of ₹170 crore. The stock is currently trading at 9.84 times its book value, and the promoter holding is robust at 71.8%.
Financial Year Ended March 31, 2025 (FY25):
- Revenue: Showed a healthy growth of 9.3%, reaching ₹2,02,018 lakh in FY25.
- Net Profit: Remained relatively stable, experiencing a slight decrease from ₹17,624 lakh in FY24 to ₹17,024 lakh in FY25.
- Dividend: The Board has proposed a final dividend of ₹0.25 per share for FY25, which, when added to the interim dividend of ₹2.00 already paid, totals ₹2.25 per share for FY25.
Quarter 3 FY25 (Quarter Ended December 2024):
- Total Income: Achieved ₹669.58 crores, marking a substantial quarter-over-quarter (QoQ) increase of 59.7% from ₹419.16 crores in Q2FY25. Year-over-year (YoY), total income grew by 7.8% from ₹621.21 crores in Q3FY24.
- Profit Before Tax (PBT): Stood at ₹98.97 crores, reflecting a significant QoQ surge of 183.4% from ₹34.92 crores in Q2FY25 and a YoY increase of 20.7% from ₹82.00 crores in Q3FY24.
- Earnings Per Share (EPS): For Q3FY25, Redtape Ltd's EPS was reported at 5.3.
Challenges in Q1 FY25:
The first quarter of FY25 presented some challenges, with profit before tax and profit after tax declining by 30.6% and 30.5% respectively in the quarter ending June 2024. The company's PBT fell to ₹39.20 crore, and PAT declined to ₹30.64 crore during this period.
Inventory levels saw a notable increase, rising to ₹1,22,080 lakh as of March 2025 from ₹76,417 lakh in March 2024. This substantial escalation in inventory indicates the company's strategic preparation for anticipated future sales growth and expansion initiatives, though it also represents a significant investment in working capital.
- Current Price: ₹137.00
- High / Low: ₹245 / 116
- Stock P/E: 44.3
- Book Value: ₹14.3
- Dividend Yield: 0.36%
- ROCE (Return on Capital Employed): 21.5%
- ROE (Return on Equity): 23.7%
- Face Value: ₹2.00
The company has demonstrated strong return metrics, with healthy ROE and ROCE figures underscoring efficient capital utilization, even amidst current valuation considerations.
Stock Performance:
Over the past 6 months, the Redtape share price has seen a decrease of 39.04%, and in the last one year, it has declined by 31.45%. This trend reflects broader market sentiment and prevailing sectoral challenges within the fashion and lifestyle segment.
Stock Listing:
Redtape's stock is listed on both the NSE and BSE, with the BSE code being 543957 and the NSE symbol REDTAPE. The company is classified as a small-cap entity and is a constituent of various key indices, including the BSE SmallCap, BSE Consumer Discretionary, and Nifty Microcap 250.
Investment Outlook:
Redtape represents a well-established fashion and lifestyle brand with a strong market presence across multiple geographies and a diverse range of product categories. While recent financial performance has shown mixed trends, with revenue growth being partially offset by margin pressures, the company's robust brand equity, extensive retail network, and diversified product portfolio are strong foundations. These attributes position Redtape favorably for long-term growth within India's expanding fashion retail market.
