REDTAPE (REDTAPE) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue reached ₹480 Cr, up 3.7% year-over-year, marking the best Q1 since listing, despite early softness from macro headwinds and cautious consumer spending.

• EBITDA margin expanded to 20.4%, and PAT margin to 9.5%, reflecting operational efficiency and disciplined cost management.

• Gross margin improved to 47.5%, up 213 bps YoY, driven by disciplined channel management and improved selling mix.

• E-commerce contributed 22% of revenue, with a conscious reduction in discounting to protect margins and brand.

• Strategic acquisition of Sprandi brand rights for India and neighboring countries, with launch planned by September.

Financial highlights

• Standalone revenue for Q1 FY27 was ₹480 Cr, up 3.7% YoY from ₹460 Cr; gross profit rose to ₹228 Cr, gross margin at 47.5%.

• EBITDA increased to ₹101 Cr, margin at 20.4% (up 323 bps YoY); PAT reached ₹47 Cr, margin at 9.5%.

• EPS for Q1 FY27 was ₹0.85.

• Online revenue share declined from 30% to 22% due to disciplined discounting, while retail grew to ₹356 Cr.

• Export revenue for Q1 FY27 was around ₹2.5 Cr.

Outlook and guidance

• Target to open 150+ new stores in FY27, with 33 already opened in Q1.

• Expectation to maintain growth trajectory and stable EBITDA margins around 20%.

• E-commerce contribution expected to return to 30% of revenue over the year.

• No price increases planned despite inflation and wage pressures; focus remains on efficiency.

• Focus remains on disciplined growth, operating efficiency, and aligning e-commerce with profitability.