Liberty Shoes delivers highest-ever revenue in FY25, sets stage for executive incentives and shareholder vote

Liberty Shoes Limited has announced a record financial performance for the fourth quarter and full fiscal year ended 31 March 2025, underscoring the impact of its strategic product innovation, digital expansion, and operational optimisation. At a Board meeting held on 18 April 2025, the company outlined several key outcomes, including revenue milestones, committee reconstitution, and plans for a shareholder postal ballot to approve incentive payments to its executive directors.

The financial update, though provisional and unaudited, suggests Liberty Shoes has posted its highest-ever top-line figures, driven by strong sales momentum across all segments and a well-executed strategy to penetrate Tier 2 and Tier 3 markets. The company also reported significant improvement in earnings before interest, tax, depreciation, and amortisation (EBITDA), with healthy margins attributed to disciplined cost controls and inventory efficiency.

How Did Liberty Shoes Perform in FY2024–25?

According to the company’s press release, Liberty Shoes achieved increased revenue in both Q4 and the full FY25 period compared to the same periods in FY24. The brand cited strong growth across its retail, digital, and omni-channel platforms as key contributors. Operational improvements also boosted overall profitability, including stronger gross margins, return on capital employed (ROCE), and improved inventory turnover ratios.

Liberty’s Executive Director Anupam Bansal described FY25 as a “milestone year,” crediting consumer-centric innovation and disciplined financial execution for the company’s success. He emphasised Liberty’s continued focus on premium segments and digital transformation as central to its growth trajectory.

The year also saw Liberty launch new performance footwear lines with advanced technology and open 50 exclusive brand outlets in non-metro markets—an expansion aimed at long-term brand penetration in under-served regions.

What Governance Changes Were Announced?

In the same meeting, Liberty Shoes’ Board approved a reconstitution of the Nomination and Remuneration Committee following the death of Gautam Baid. Independent Director Piyush Dixit has been appointed to the committee with effect from 4 April 2025.

Additionally, the Board approved the payment of annual incentives to three Executive Directors—Shammi Bansal, Anupam Bansal, and Adish Gupta—for the financial year ended 31 March 2025. The incentives will be in addition to their existing remuneration and are subject to shareholder approval via postal ballot.

To facilitate this, Liberty Shoes will conduct a postal ballot process, appointing JVS & Associates as the scrutinizer for the vote. The cut-off date for determining eligible shareholders has been set as 18 April 2025, with remote e-voting enabled to ensure wider participation.

What Are the Broader Implications for Investors?

Liberty Shoes’ provisional financials and strategic expansions signal a strong outlook for the company as it continues to build on digital capabilities and expand its physical footprint. While audited financials are still pending, the reported growth in EBITDA and gross margins suggests operational resilience in a competitive retail market.

The use of postal ballots and a dedicated scrutinizer also highlights the company’s intent to align governance with SEBI’s regulatory framework, fostering transparency in executive remuneration and corporate actions. For shareholders, the proposed incentive payout and improved financial health reflect a potential for sustained value creation.

With increased emphasis on premium offerings, technology-driven products, and deeper market penetration, Liberty Shoes positions itself as a brand ready to scale, even in a price-sensitive and competitive footwear market.

How Is Liberty Shoes Stock Performing and What Is the Sentiment?

As of April 17, 2025, Liberty Shoes Limited (NSE: LIBERTSHOE) was trading at ₹339.85, representing a marginal 0.67% decline on the day. However, the stock has gained 7.89% over the past week and surged 18.11% over the past month. Despite this recovery, it remains about 40.34% below its 52-week high of ₹569.60, after rebounding significantly from a 52-week low of ₹276.00.

Valuation-wise, the stock is trading at a trailing twelve-month P/E ratio of 51.81, below the sector average of 74.84, suggesting relative undervaluation within its peer group. Its price-to-book (P/B) ratio stands at 2.76. The stock currently does not offer a dividend, indicating that profits are likely being reinvested to support growth initiatives.

Institutionally, foreign investors hold a minor 0.68% stake as of December 2024, with no reported domestic institutional or mutual fund holdings. This limited institutional exposure suggests that retail investors dominate the shareholding pattern.

For the quarter ended December 2024, Liberty Shoes reported net sales of ₹160.10 crore and a net profit of ₹2.37 crore, further supporting its improving fundamentals. With return on equity (ROE) improving to 5.9%, and enhanced working capital management, the financials reflect an upward trend.

Technically, the stock remains in an uptrend with near-term resistance at ₹355 and upside targets at ₹374 and ₹399. Support levels are observed at ₹311 and ₹276. Its beta of 1.50 indicates higher-than-average volatility, aligning with its recent market movements.

Buy, Sell, or Hold?

Given Liberty Shoes’ strong FY25 revenue update, improved operational metrics, and a recovering stock price trajectory, market sentiment appears positive. Analysts may consider the stock a hold for existing investors, with a buy-on-dip strategy for new entrants. Final investment decisions should await the company’s audited financials and additional forward-looking commentary during the results announcement.