LIBERTSHOE - Liberty Shoes

📊 NSE: LIBERTSHOE 🏢 Leather / Leather Products 📅 Last Updated: 12/14/2025 9:15

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment, 'Footwear', which recorded a revenue of INR 675.48 Cr in FY25, representing a 6% growth compared to INR 635.77 Cr in FY24. For H1 FY26, revenue stood at INR 347.02 Cr, a 5.89% increase from INR 327.72 Cr in H1 FY25.

Geographic Revenue Split

Geographically diversified revenue stream with operations across India; however, specific percentage splits per region are not disclosed in available documents.

Profitability Margins

Operating Profit Margin improved slightly to 7.42% in FY25 from 7.30% in FY24. Net Profit Margin (excluding exceptional items) was 2.40% in FY25 compared to 2.48% in FY24. Return on Net Worth stood at 7.50% in FY25.

EBITDA Margin

PBILDT margin was 9.40% in H1 FY25 compared to 9.90% in H1 FY24. In FY23, the margin was 9.44%, an improvement of 38 bps from 9.06% in FY22, driven by better absorption of fixed overheads.

Capital Expenditure

Not explicitly disclosed as a total figure, but the company reported depreciation and amortisation expenses of INR 32.78 Cr for FY25, indicating significant existing asset base and ongoing maintenance/expansion.

Credit Rating & Borrowing

The company maintains a comfortable capital structure with an overall gearing of 0.71x as of March 31, 2024, improved from 0.81x in 2023. Working capital utilization was INR 68.13 Cr in FY24. Interest coverage ratio was 5.11x in FY23.

⚙️ Operational Drivers

Raw Materials

Leather, rubber, and synthetic chemicals are primary raw materials. The company is highly susceptible to volatility in these prices, which directly impacts the PBILDT margin.

Capacity Expansion

Current capacity is not specified in units, but the company is focusing on 'LEAP7X' in the athleisure segment to drive future volume growth.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; margins are sensitive to price fluctuations. Procurement strategies involve managing leather operations through a dedicated director, Mr. Adish Kumar Gupta.

Manufacturing Efficiency

Manufacturing is overseen by Mr. Shammi Bansal; efficiency is driven by better product mix and introduction of premium brands like LEAP7X to improve overhead absorption.

Logistics & Distribution

The company utilizes a wide distribution network and geographically diversified revenue streams to mitigate regional demand fluctuations.

📈 Strategic Growth

Expected Growth Rate

6-10%

Growth Strategy

Growth is targeted through product innovation, retail and digital expansion, and operational excellence. The company is specifically focusing on the premium athleisure segment with the 'LEAP7X' brand to improve margins and scale.

Products & Services

Footwear including leather shoes, sports shoes, and athleisure products.

Brand Portfolio

Liberty, LEAP7X.

New Products/Services

Introduction of the 'LEAP7X' brand in the athleisure segment is expected to contribute to a better product mix and higher profit margins.

Market Expansion

Strategic focus on retail and digital expansion to reach a broader consumer base.

Strategic Alliances

Exclusive long-term business arrangements with group firms Liberty Group Marketing Division (LGMD), Liberty Enterprises (LE), and Liberty Footwear Co. (LFC).

🌍 External Factors

Industry Trends

The footwear industry is highly fragmented and competitive. Trends show a shift toward athleisure and premiumization, which the company is addressing through new brand launches.

Competitive Landscape

Highly fragmented and competitive footwear market with significant pressure from both organized and unorganized players.

Competitive Moat

Moat is built on a long-standing brand legacy (Liberty) and a wide distribution network. Sustainability depends on the continued exclusive use of IPR from group entities.

Macro Economic Sensitivity

Sensitive to raw material price volatility and general consumer spending trends in the footwear industry.

Consumer Behavior

Increasing demand for athleisure and branded footwear is driving the company's strategic shift toward the LEAP7X brand.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 108 (Operating Segments) and SEBI (Prohibition of Insider Trading) Regulations, 2015.

Legal Contingencies

The company has a contingent liability of INR 23.69 Cr as of March 31, 2025, involving legal cases and other matters, up from INR 21.43 Cr in the previous year.

⚠️ Risk Analysis

Key Uncertainties

Potential termination of contracts with group entities for IPR use; volatility in raw material prices impacting margins by more than 300 bps (rating sensitivity).