Redtape plans to double its store expansion pace in FY27
Management targets 200-250 new outlets for the coming year, alongside a rise in EBITDA margins to 19%.
— 1 earlier story on Redtape Ltd. →What's new
- Redtape is doubling its annual store expansion run rate to 200-250 new outlets.
- EBITDA margins climbed to 19% from 17.5%.
- Inventory days are targeted to drop from 170-175 to 120-150 in the near term.
Why this matters
The shift from 80-100 stores to over 200 signals an aggressive move to capture market share. If management sustains 19% margins while clearing out excess inventory, the company will prove its multi-brand strategy works.
What we're watching
- Whether the company maintains 19% margins during a rapid expansion phase.
- Evidence of inventory turnover hitting the 120-150 day target.
- Execution of the multi-brand strategy across the new store footprint.
The full read
Redtape is shifting gears. After reporting its FY26 results, management announced a plan to open 200-250 new stores in FY27, doubling the previous annual run rate of 80-100 outlets. This expansion comes alongside a rise in EBITDA margins to 19% from 17.5%. Executives insist this margin gain is structural. To support this growth, the company is also targeting a reduction in inventory days, aiming to bring the figure down from 170-175 to 120-150 in the near term. The strategy hinges on the company's ability to scale its multi-brand footprint without diluting the gains it has made in efficiency. The next test is whether the company can maintain these margins while managing the logistics of such a rapid store rollout.
Questions answered
- How many stores does Redtape plan to open in FY27?
- Management is targeting 200-250 new outlets, which is more than double the previous annual run rate of 80-100 stores.
- What is the current status of the company's margins?
- EBITDA margins reached 19%, up from 17.5%. Executives claim this improvement is structural.
- What are the company's plans for inventory management?
- Redtape intends to reduce inventory days from the current 170-175 range to 120-150 in the near term.
- What is the core strategy behind this expansion?
- The expansion is part of a broader multi-brand strategy. Management believes the current margin profile and inventory plans validate this approach.
Story so far
All notes on REDTAPE →- 26 May 2026 · 6:35 PM IST Redtape plans to double its store expansion pace in FY27
- today ICICI Prudential Mutual Fund lifts stake in Redtape to 7.06%