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Earnings · Footwear · Micro cap

Liberty Shoes' Q4 profit jumps 8x, but full-year profit still fell 18%

A sharp Q4 recovery to ₹5.30 crore from ₹59 lakh couldn't offset a weaker first nine months. Full-year profit dropped to ₹11.19 crore as the auditor flagged a related-party arrangement.

1 earlier story on Liberty Shoes Ltd.
Mkt cap₹459 cr
P/E41.05×
ROE6.06%
Debt / eq.0.33
₹11.19 cr FY26 net profit, down from ₹13.56 cr a year prior.

What's new

  • Q4 net profit surged to ₹5.30 crore from just ₹59 lakh in Q3, a near 8x sequential jump.
  • Full-year net profit fell to ₹11.19 crore from ₹13.56 crore in FY25, even as annual revenue grew 9.6% to ₹739.99 crore.
  • Auditor flagged an 'emphasis of matter' on asset-usage deals with partnership firms linked to interested directors, expiring in 2028.

Why this matters

The Q4 swing is a clear positive after a weak first nine months. But the full-year profit decline on 9.6% revenue growth points to margin pressure earlier in the year. The auditor's note on related-party arrangements adds a governance overhang.

What we're watching

  • Whether the Q4 margin recovery holds into Q1 FY27.
  • Any shareholder or board response to the auditor's emphasis of matter.
  • Progress on the partnership-firm arrangements before their 2028 expiry.

The full read

Liberty Shoes ended its financial year on a stronger note than it started. Q4 net profit hit ₹5.30 crore, up nearly 8x from a dismal ₹59 lakh in Q3. Revenue for the quarter climbed to ₹212.05 crore from ₹180.92 crore. But the late recovery couldn't save the full year: net profit fell to ₹11.19 crore from ₹13.56 crore, even as annual revenue grew 9.6% to ₹739.99 crore. The auditor's emphasis of matter over asset-usage deals with partnership firms linked to interested directors, set to expire in 2028, introduces a governance question. The open question is whether the Q4 margin recovery is a one-quarter bounce or the start of a trend.

Questions answered

How much did Liberty Shoes' profit recover in Q4?
Net profit jumped to ₹5.30 crore in Q4 from just ₹59 lakh in the preceding December quarter. It's a near 8x sequential increase, but the first nine months of the year were weak enough to drag the full year down.
Why did full-year profit fall despite revenue growth?
Full-year net profit dropped to ₹11.19 crore from ₹13.56 crore even as revenue rose 9.6% to ₹739.99 crore. The numbers imply margin compression or higher costs during the first three quarters, which the strong Q4 couldn't fully offset.
What did the auditor flag?
The auditor's report included an 'emphasis of matter' regarding asset-usage arrangements with partnership firms that have directors interested in the company. These arrangements expire in March 2028, creating uncertainty about future asset access.
How does the Q4 result compare to the prior year?
The filing provides a full-year comparison but doesn't give a direct Q4 FY25 figure. The key data point is the 8x sequential profit jump from Q3's ₹59 lakh to Q4's ₹5.30 crore.
Mentioned: Q4 FY26 results · Auditor emphasis of matter · Partnership firms with interested directors
Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

Liberty Shoes Ltd.

Retail
₹443 cr
P/E 39.57×

Latest quarter · Mar 2026

Sales₹212 cr
Net profit₹5 cr
Op. margin+9.4%
EPS₹3.11

Strength & growth

Debt / equity0.88×
Current ratio1.26×
Sales CAGR+4.9%
EPS CAGR+0.8%
  1. 26 May 2026 · 3:12 PM IST Liberty Shoes' Q4 profit jumps 8x, but full-year profit still fell 18%
  2. 3d ago Liberty Shoes promoter sells 10,000 shares, a negligible stake change