Redtape Limited (REDTAPE) AI Stock Analysis

• Market Cap: ₹62.99B
• Dividend Yield: 0.6%
• Average Volume (3M): 93.48K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.78
• Revenue Growth: 7.29%
• EPS Growth: 14.72%
• Country: IN
• Employees: 867
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Retail
• EPS (TTM): 1.89
• Shares Outstanding: 552,807,600
• 10 Day Avg. Volume: 49,169
• 30 Day Avg. Volume: 93,481
• PEG Ratio: -13.73
• Price to Book (P/B): 10.22
• Price to Sales (P/S): 3.99
• P/FCF Ratio: -45.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹141.00 ▲(18.04% Upside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is primarily supported by strong income-statement performance (growth and operational margins), but it is held back by cash flow weakness and increasing leverage risk. Technicals are mixed with a softer longer-term trend, and valuation is less compelling due to the higher P/E and low dividend yield.

Positive Factors

Revenue Growth Trend

Consistent double-digit revenue growth and a reported year-over-year increase indicate durable demand and expanding market penetration. Over 2-6 months this supports scale benefits, better fixed-cost absorption and provides a foundation for sustainable top-line-driven margin resilience.

Margin Sustainability

Stable gross margins and robust net/EBIT(DA) margins signal structural operating efficiency and pricing power in Specialty Retail. These margin characteristics support cash generation potential (when cash flows normalize) and offer a durable buffer against modest cost inflation over the medium term.

Asset & Equity Growth

Rising assets and equity reflect reinvestment and capital formation, enabling expansion of store footprint or inventory investment. A growing capital base supports longer-term revenue growth and operational scale, improving strategic flexibility if leverage is managed prudently.

Negative Factors

Negative Operating Cash Flow

A recent switch to negative operating cash flow indicates working-capital strain or weaker cash conversion of earnings. Persisting negative OCF threatens liquidity, forces reliance on external financing, and can limit the company's ability to fund operations and strategic initiatives sustainably.

Negative Free Cash Flow (High Capex)

Sustained high capital expenditures causing negative free cash flow point to capital intensity or aggressive expansion. If capex remains elevated, the business may struggle to self-fund growth, increasing refinancing needs and reducing financial flexibility over the medium term.

Rising Leverage

An increasing debt-to-equity ratio raises financial risk by heightening interest and refinancing exposure. Elevated leverage can compress discretionary spending, constrain investment choices, and make the company more vulnerable to demand shocks or rising rates over the next several months.

Redtape Limited Business Overview & Revenue Model

Company Description

Redtape Limited manufactures and sells footwear and clothing for men, women, and kids in India and internationally. It offers footwear, such as sandals, slippers, casuals, shoes, sports shoes, boots, sliders, and flip flops; topwear, including T-shirts, shirts, sweaters, sweatshirts/hoodies, and jackets; jeans and trousers; jeggings and pants; sportswear comprising active T-shirts, shorts, and trackpants/joggers; and briefs and trunks. The company provides tops/tunics, jackets, and kurtas; tights/leggings; trackpants/joggers; and caps, belts, socks, and wallets, as well as gift cards. It operates through retail stores and online channels. The company offers its products under the RedTape, RedTape Athleisure, Mode By RedTape, and Bond Street by RedTape brands. Redtape Limited was founded in 1996 and is based in Noida, India.

How the Company Makes Money

Redtape Limited generates revenue through multiple streams, primarily by offering subscription-based software services and consulting fees. Their key revenue model includes licensing fees for proprietary software solutions, which are designed to improve productivity and efficiency for businesses. Additionally, the company earns income from strategic partnerships with other tech firms, enabling them to bundle services and expand their market reach. Consulting services also contribute significantly to their earnings, as clients seek expert guidance on digital transformation initiatives. Overall, REDTAPE's diverse approach to revenue generation, combined with its focus on high-demand sectors, solidifies its financial sustainability.

Redtape Limited Financial Statement Overview

Summary

Income statement strength (revenue growth and solid operating margins) is tempered by weaker cash flow (negative operating cash flow and negative free cash flow due to high capex) and rising leverage risk on the balance sheet.

Income Statement

Redtape Limited shows a healthy revenue growth with a significant increase from 2024 to 2025. The gross profit margin has been consistent, although a slight dip is seen in 2025. Net profit margin remains robust despite a slight decrease. EBIT and EBITDA margins indicate strong operational performance, though there's a need to control costs to maintain these margins.

Balance Sheet

The company's balance sheet reflects a significant increase in total assets and equity over the years, indicating growth. However, the debt-to-equity ratio has increased, which could be a risk if leverage continues to rise. The equity ratio suggests a stable financial position, but maintaining this balance is crucial to avoid over-leverage.

Cash Flow

Cash flow analysis shows a negative trend in free cash flow, primarily due to high capital expenditures. Operating cash flow has turned negative in the latest period, posing a potential risk to liquidity. Improving cash flow management will be essential to support future growth and operational needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	21.27B	20.20B	18.43B	14.68B	3.03B
Gross Profit	8.53B	7.37B	8.94B	6.72B	1.35B
EBITDA	3.98B	3.67B	3.28B	2.48B	472.20M
Net Income	1.81B	1.70B	1.76B	1.42B	290.40M
Balance Sheet
Total Assets	22.91B	22.24B	15.88B	12.39B	63.20K
Cash, Cash Equivalents and Short-Term Investments	288.60M	145.70M	210.40M	261.80M	142.60M
Total Debt	9.29B	7.24B	4.80B	2.60B	285.00M
Total Liabilities	14.33B	14.35B	9.40B	7.62B	5.00K
Stockholders Equity	8.57B	7.89B	6.48B	4.77B	3.36B
Cash Flow
Free Cash Flow	-1.68B	-1.79B	-351.40M	-189.00M	-1.48B
Operating Cash Flow	-1.24B	-76.10M	843.70M	1.27B	-36.80K
Investing Cash Flow	-592.60M	-1.07B	-1.16B	-1.27B	-1.48B
Financing Cash Flow	1.82B	1.20B	261.00M	124.30M	-132.30M

Redtape Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 119.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:REDTAPE, the sentiment is Negative. The current price of 119.45 is below the 20-day moving average (MA) of 123.07, below the 50-day MA of 122.48, and below the 200-day MA of 130.44, indicating a bearish trend. The MACD of -2.37 indicates Positive momentum. The RSI at 39.33 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:REDTAPE.

Redtape Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMPUS	72 Outperform	₹73.30B	31.42	―	0.39%	9.42%	27.12%
PGIL	66 Neutral	₹69.92B	34.81	―	0.77%	24.93%	20.57%
MANORAMA	64 Neutral	₹79.27B	27.59	―	0.04%	89.51%	188.01%
TTKPRESTIG	64 Neutral	₹79.40B	64.27	―	0.97%	4.48%	-49.18%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
REDTAPE	61 Neutral	₹62.99B	16.39	―	0.60%	7.29%	14.72%
GALAXYSURF	60 Neutral	₹65.63B	30.80	―	1.07%	22.63%	-8.57%

Redtape Limited Corporate Events

Redtape Confirms SEBI LODR Compliance for December Quarter

Redtape Limited has notified the stock exchanges that it remains in compliance with Regulations 6(1) and 7(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the quarter ended 31 December 2025. The company confirmed the appointment of a qualified company secretary, Akhilendra Bahadur Singh, as compliance officer and the engagement of KFin Technologies Limited as its registrar and share transfer agent, underscoring adherence to corporate governance and investor servicing norms that are critical for maintaining its listing status and protecting shareholder interests.

Redtape Limited Closes Trading Window Ahead of December Quarter Results

Redtape Limited has notified the stock exchanges that it is closing its trading window for company securities for all designated persons, including promoters, directors, key managerial personnel, designated employees and connected persons, from 1 January 2026 until 48 hours after the announcement of its unaudited financial results for the quarter and nine months ended 31 December 2025. This move, undertaken in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, underscores Redtape’s effort to prevent insider trading, signals that earnings disclosure is approaching, and provides clarity to market participants on when insiders are restricted from trading ahead of a key financial reporting event.

Redtape to Close Trading Window Ahead of December Quarter Results

Redtape Limited has announced that its trading window for dealing in the company’s shares will be closed for designated persons, including promoters, directors, key managerial personnel, designated employees and connected persons, from 1 January 2026 until 48 hours after the release of its unaudited financial results for the quarter and nine months ended 31 December 2025. The move follows regulatory requirements on prevention of insider trading and signals that the company is preparing to publish its next set of financials, with the board meeting date for approval of these results to be communicated later, temporarily restricting insider dealings to protect market integrity and safeguard minority investors ahead of the disclosure.