Financial Analysis Summary: REDTAPE LIMITED
For the Quarter Ended June 30, 2025 (Q1 FY26)

1. Auditor’s Note

• Standalone and Consolidated Results have been reviewed by Ashwani & Associates, Chartered Accountants.
• The review was conducted under SRE 2410 (Review of Interim Financial Information).
• No qualifications, concerns, or issues were raised by the auditors.
• The auditor’s report states:
  “Nothing has come to our attention that causes us to believe that the accompanying Statement... contains any material misstatement.”
• For consolidated results, some subsidiaries’ interim financials were not audited but are considered immaterial to the Group.
• Overall, the auditor’s notes are standard boilerplate with no qualifications.

2. Financial Performance

Notes:

• EPS for quarters is not annualised.
• Consolidated EPS for Q1 FY25 references Note 4 (likely related to share capital changes or adjustments).
• Margins can be approximated as:
  • Standalone Q1 FY26 Net Profit Margin ≈ 8.5% (3,931 / 46,306)
  • Consolidated Q1 FY26 Net Profit Margin ≈ 8.3% (3,860 / 46,431)
• Revenue and profit have declined QoQ (Q1 FY26 vs Q4 FY25) but improved YoY (Q1 FY26 vs Q1 FY25).

3. Detailed Notes / Management Commentary

• Business Model: The company operates primarily in retailing/trading of apparels and footwear.
• Segment Reporting: Only one reportable segment as per Ind AS 108.
• Accounting Standards: Results prepared as per Ind AS and comply with SEBI LODR Regulations.
• Subsidiaries: Consolidated results include subsidiaries in India and overseas (Bangladesh, Hong Kong, London, Quanzhou). Some subsidiaries’ interim results are unaudited but immaterial.
• No changes in accounting policies or material adjustments mentioned in the filing.
• No exceptional items reported for the quarter or year.
• Other Comprehensive Income: Includes remeasurement of defined benefit obligations and cash flow hedge reserve movements.
• Taxation: Includes current, deferred, and earlier years’ tax adjustments.
• No commentary on NPAs, slippages, or AUM as the company is in retail/trading, not financial services.

4. Segment Information

• The company reports only one operating segment: retailing/trading of apparels and footwear.
• No further breakdown by product, geography, or other dimensions provided.

5. Capex, Projects, and Corporate Activity

• No explicit disclosures on capital expenditure, ongoing/planned projects, impairments, write-downs, or provisions in the filing.
• No acquisitions, disposals, mergers, or restructuring efforts mentioned.
• The filing is limited to financial results and audit review reports.

6. Standalone vs Consolidated

Summary for Investment Analysis Team

• Financials show stable performance with slight QoQ decline but YoY growth in revenue and profits.
• Profit margins remain healthy (~8.3-8.5%) for both standalone and consolidated results.
• No auditor qualifications or concerns; results are reliable and compliant with accounting standards.
• No exceptional items or one-offs affecting profitability.
• Single business segment simplifies analysis; no diversification risks disclosed.
• No material corporate actions or capital expenditure updates disclosed in this filing.
• Subsidiaries contribute modestly; some unaudited interim results considered immaterial.
• EPS stable but low on absolute basis, reflecting the company’s scale and share capital structure.

Actionable Points:

• Monitor Q2 FY26 results for recovery or further trends in revenue and profitability.
• Watch for disclosures on capital expenditure or strategic initiatives in future filings.
• Consider stable margins and clean audit reports as positive indicators for operational efficiency and governance.
• No immediate red flags or risks identified from this filing.

End of Analysis