RedTape Limited website sales rise 712% as e-commerce falls

RedTape Limited recorded Rs 31.9 crore of sales on RedTape.com in the second quarter (Q2) of FY27, up 712% year on year, while reported e-commerce revenue declined 21% to Rs 146 crore after Big Billion Days shifted from September to October.

Why did RedTape’s e-commerce revenue fall in Q2 FY27?

RedTape’s reported e-commerce revenue declined because Big Billion Days moved from September in the prior year to October in the current year, shifting associated sales from Q2 FY27 into Q3 FY27. E-commerce revenue was Rs 146 crore in Q2 FY27, down from Rs 185 crore in Q2 FY26, while revenue from operations fell 3.5% to Rs 474 crore.

Management described Q2 FY27 as seasonally softer and said the revised promotional calendar affected the quarter’s revenue base. The e-commerce ecosystem includes marketplaces such as Flipkart, Myntra and Ajio, RedTape.com and quick-commerce platform Zepto, but the presentation does not disclose revenue for each route. The Rs 39 crore year-on-year e-commerce reduction therefore cannot be allocated between marketplaces, the website and quick commerce from the available data.

How fast did RedTape.com grow in Q2 FY27?

RedTape.com sales grew 712% year on year to a record Rs 31.9 crore in Q2 FY27. RedTape identifies the website as its own digital channel, separate from third-party marketplaces within the broader e-commerce ecosystem.

The direct-site increase occurred while aggregate e-commerce revenue fell to Rs 146 crore, showing different movements within the digital business during Q2 FY27. RedTape does not disclose the Q2 FY26 website-sales value, customer traffic, conversion rate, marketing expenditure, order volumes or website profitability. It also does not provide a marketplace-by-marketplace split of the Rs 146 crore channel total.

How did RedTape’s channel mix change in Q2 FY27?

RedTape’s e-commerce mix increased to about 31% of Q2 FY27 revenue from about 22% in Q1 FY27, returning broadly to its historical level of about 30%, according to management. Retail exclusive brand outlets (EBOs) accounted for 65% of Q2 FY27 revenue and other channels represented 4%.

The higher share versus Q1 FY27 did not represent year-on-year e-commerce growth in rupee terms. Retail revenue rose 15% to Rs 308 crore in Q2 FY27, while e-commerce declined 21% to Rs 146 crore and other-channel revenue fell 47% to Rs 20 crore.

In the first half (H1) of FY27, e-commerce revenue was Rs 250 crore, 23% below Rs 323 crore in H1 FY26. Retail increased 16% to Rs 664 crore over the same period, while other-channel revenue declined 29% to Rs 41 crore. Total H1 FY27 revenue was unchanged at Rs 955 crore, compared with H1 FY26.

What supported RedTape’s retail channel in Q2 FY27?

RedTape’s retail revenue increased by Rs 40 crore year on year to Rs 308 crore in Q2 FY27. The company added 49 EBOs and five shop-in-shops during the quarter, alongside gross additions of 86,000 square feet of store area.

RedTape operated 756 stores in 369 cities at the time of the presentation. The network comprised 299 exclusive mega showrooms, 305 exclusive showrooms, 137 shop-in-shops, 12 factory shops and three sports outlets. The company says approximately two-thirds of its store network is franchise-owned and franchise-operated, under which it retains inventory ownership and goods and services tax billing.

Footwear remained the largest product category, generating Rs 300.46 crore, or 63%, of Q2 FY27 revenue. Apparel generated Rs 150.09 crore, or 32%, while accessories contributed Rs 23.75 crore, or 5%. RedTape accounted for 95% of Q2 FY27 revenue, with Ozark at 3% and Mode plus Bond Street at 1%.

Did RedTape maintain profitability despite lower Q2 revenue?

RedTape increased profit after tax by 27.3% year on year to Rs 36 crore in Q2 FY27 despite the 3.5% decline in revenue from operations. Gross margin increased 752 basis points to 45.4%, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin expanded 204 basis points to 18.9%.

For H1 FY27, EBITDA rose 12.4% to Rs 190 crore and profit after tax increased 22.7% to Rs 83 crore. Gross margin was 46.5%, up 494 basis points, and EBITDA margin was 19.9%, up 220 basis points. RedTape states that EBITDA includes other income.

Conclusion

RedTape’s Q2 FY27 results show contrasting digital outcomes: RedTape.com reached Rs 31.9 crore after 712% year-on-year growth, while reported e-commerce revenue declined to Rs 146 crore from Rs 185 crore. Higher retail revenue of Rs 308 crore and a 752-basis-point gross-margin increase supported profit after tax of Rs 36 crore despite lower total revenue.

The next disclosed item to watch is Q3 FY27, which includes the October timing of Big Billion Days sales that moved out of Q2. Through FY27, management says RedTape plans to pursue operating efficiency, retail and digital execution, and e-commerce growth aligned with profitability, without disclosing a numeric target for website sales or e-commerce revenue.