Footwear stocks Liberty Shoes, Khadim, RedTape rally up to 15%; here's why

Share prices of footwear companies today

 

Shares of footwear companies soared up to 15 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes after Metro Brands, one of India’s leading footwear retailers reported a healthy earnings for the quarter ended December 2025 (Q3FY26).

 

Share price of Liberty Shoes surged 15 per cent to ₹269.20 in intra-day trade. In the past two trading days, the stock has bounced back 28 per cent from its 52-week low of ₹210.05 touched on Tuesday, January 27, 2026.

 

Share price of RedTape (₹123.40) and Superhouse (₹160.40) surged 12 per cent each, while Khadim India (₹182.90) and Metro Brands (₹1,171.50) rallied 10 per cent each, followed by Relaxo Footwears (4 per cent at ₹379.65) and Bata India (2 per cent at ₹864.05). In comparison, the BSE Sensex was up 0.5 per cent at 82,251 at 10:41 AM.

 

 

Analysts expect the earnings to improve over the medium term amid anticipation of a gradual improvement in demand and continuous innovation and marketing spend. 

India-European Union trade deal

India-European Union (EU) trade deal will substantially benefit labour intensive sectors including footwear with no tariff on export of products to EU27 countries.

 

Indian footwear sector has 3 per cent share in EU’s footwear imports. With tariff reduction to zero from earlier 17 per cent will provide opportunities for domestic footwear players to compete with countries such as Vietnam and China. ICICI Securities said they might see Indian footwear companies installing global standard capacities to explore export opportunities. Key beneficiaries would be Relaxo Footwear, Campus Activewear and Bata India.

 

Metro Brands posts 15 per cent revenue growth in Q3FY26

 

Metro Brands reported 15 per cent revenue growth in Q3FY26, driven by strong festive and wedding season demand, supported by a reduction in GST on footwear priced below ₹2,500.

 

Metro Brands retails footwear under its own brands of Metro, Mochi, Walkway, MetroActiv, Da Vinchi and J. Fontini, as well as certain third‐party brands such as Crocs, Fitflop, Fila, Clarks, Skechers, Puma and Adidas which complement its in‐house brands.

 

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 18 per cent year-on-year (YoY) to ₹260 crore as EBITDA margin expanded ~60 bps YoY to 32.7 per cent led by ~50 bps YoY expansion in gross margin to 59.1 per cent and ~70bps YoY lower other expense, offset by 50bps higher employee expense. However, adjusted profit after tax grew slower at 9 per cent YoY to ₹130 crore due to 22 per cent/23 per cent higher YoY depreciation/interest expense and 31 per cent lower other income. 

 

Import restrictions due to BIS regulations lead to supply chain disruptions for the company’s global brand portfolio, especially in the Sports & Athleisure footwear segment (primarily Footlocker). Though, global brands have started receiving some BIS approvals for their manufacturing units across foreign geographies; further delays are expected in stabilization of the supply chain ecosystem from earlier committed Q4FY26 to Q2 FY27 now, analysts at JM Financial Institutional Securities said.  Meanwhile, analysts at ICICI Securities said, Metro’s Q3 performance reflects a steadier operating environment, with festive-led demand translating into margin accretive growth rather than a promotional upside. EBITDA margins sustained at ~33%, highlighting improving quality of execution, supported by premium mix, disciplined cost control and steady omni-channel scaling. Newer growth engines such as Clarks and Metro Activ are adding optionality, while the core business continues to anchor earnings delivery.  With GST-related uncertainty easing and BIS disruptions expected to normalise gradually, Metro appears better positioned to deliver more predictable, execution-led earnings growth, reinforcing confidence in medium-term visibility, said ICICI Securities. The brokerage firm maintains a 'ADD' rating on the stock with a  revised target price of ₹1,200 (vs. ₹1,250).  ALSO READ | Q3 Results Today 

GST cut on footwear

 

Earlier in January 2022, GST on footwear below ₹1,000/pair was increased from 5 per cent to 12 per cent impacting demand. In September 2025, GST on footwear upto ₹2,500/pair was reduced to 5 per cent. 

 

Footwear companies have passed on the GST rate cut on existing inventory and increased prices marginally on new inventory. Management expects recovery in demand during festive and wedding season coupled amid reduction in GST rate. Moreover, improvement in margins is expected from Q3FY26 onwards with part withdrawal of discounts and marginal increase in prices post reduction in GST rate.