Redtape Q2 FY27 Revenue Takes A 3.5% Hit Amid Shifting Festive Demand But Profitability Holds Strong, Website Sales Surge A Massive 712% As EBITDA Margin Expands To 18.9% And H1 Profit Jumps 22.7%

Mumbai: Redtape Limited reported a 3.5 per cent year-on-year decline in standalone revenue to ₹474 crore for the second quarter ended September 30, 2026, as changes in the festive and promotional calendar affected sales.

Despite the revenue decline, the footwear and fashion retailer recorded higher operating earnings, improved margins and strong growth through its direct-to-consumer website.

Revenue Performance

Redtape's standalone revenue stood at ₹474 crore during Q2 FY27, compared with the corresponding quarter last year. The company attributed the decline to shifts in the timing of festive demand and promotional activities. However, operating profitability improved despite softer quarterly sales.

EBITDA Growth

Standalone earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8.2 per cent year-on-year to ₹89 crore. The EBITDA margin expanded by 204 basis points to 18.9 per cent. The improvement indicates stronger operating profitability during the July-September quarter.

Half-Year Results

For the first half of FY27, Redtape reported standalone revenue of ₹955 crore, broadly unchanged from the corresponding period last year. However, profit after tax (PAT) increased 22.7 per cent to ₹83 crore. The figures highlight improved profitability despite relatively flat half-yearly revenue.

Online Sales

Redtape's official website, Redtape.com, recorded a sharp 712 per cent year-on-year increase in sales. The online channel's contribution to the sales mix recovered to approximately 31 per cent during Q2 FY27. This compared with around 22 per cent in the preceding quarter.

Retail Expansion

The company continued expanding its physical retail presence during the September quarter. Redtape added 49 exclusive brand outlets and five shop-in-shops, strengthening its distribution network. Following these additions, its total store count reached 756 across 369 cities.

Business Outlook

Redtape's Q2 FY27 performance reflected contrasting trends, with lower quarterly revenue but stronger operating earnings. The expansion of online sales and physical stores remains central to its distribution strategy. Investors will monitor festive demand, retail productivity and profitability in subsequent quarters.

Disclaimer: This report is based on company exchange filings and is for informational purposes only. Investors should independently assess risks before investing.