Brandman Retail Ltd. IPO Analysis: IPO Details, Business Detail, Risks

This article on the upcoming IPO of Brandman Retail Limited, including details on the IPO price band, business model, financial performance, valuation, and risks, offers investors a closer look at its positioning in India’s growing footwear retail market.

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Before the Deep Dive: What’s Working — and What Isn’t

Now that you’ve seen the snapshot, let’s unpack the full story behind these numbers and understand the business in context.

Industry Overview 

India’s footwear industry, sized at USD 26–30 billion, is on a steady growth path with an expected 9–10% CAGR over the next few years, powered by rising discretionary spends and a clear shift from unorganised to branded players. Per capita footwear consumption in India remains far below global averages, which quietly signals a long runway as urbanisation and lifestyle upgrades kick in. The market is moving beyond utility-led buying to fashion, comfort, and occasion-based footwear, lifting average selling prices. 

On the policy side, PLI for footwear and leather, Make in India, GST-led formalisation, and infrastructure upgrades under PM Gati Shakti are strengthening domestic manufacturing and improving supply-chain efficiency. Add faster trend cycles, growing online discovery, and deeper Tier-2/3 penetration—and what this really means is that organised footwear retailers are structurally positioned to gain share in a still-underpenetrated but expanding market.

Brandman Retail was born out of a simple gap in the Indian footwear market—rising demand for branded, fashion-forward footwear, but limited access to organised, scalable retail platforms that could move fast with trends. As India’s footwear consumption began shifting from utility to lifestyle, the company positioned itself at the intersection of design, sourcing, and distribution. 

Business Model: 

1. Non-exclusive Brand Distribution

Brandman Retail distributes and retails premium international footwear brands under non-exclusive agreements, allowing portfolio flexibility and lower concentration risk. The company focuses on sourcing, inventory management, and retail execution rather than manufacturing, keeping the model asset-light.

2. Exclusive Brand Outlets (EBOs)

EBOs operate under specific brand arrangements and offer full control over store experience, pricing, and brand positioning. These outlets help build visibility and trust, especially important in premium footwear categories.

3. Multi-Brand Outlets (MBOs) – “Sneakrz”

Through its Sneakrz stores, Brandman offers multiple brands under one roof. This format drives higher footfalls, enables cross-selling, and improves inventory rotation while reducing dependence on a single brand.

4. Online Channels (Marketplaces + D2C)

The company sells through e-commerce marketplaces and its own website, enabling wider geographic reach, faster trend adoption, and access to customer data, while supporting omnichannel demand.

5. B2B Supply to Retailers

Brandman supplies footwear to third-party retailers, who sell through their own online and offline channels. This expands distribution without heavy capex and improves inventory throughput.

6. Omnichannel Retail Platform

Together, these channels form a channel-agnostic omnichannel model, allowing Brandman to scale efficiently across India’s fragmented footwear market while adapting to shifts between online and offline buying.

Products and services offered 

Brandman Retail offers a portfolio of premium and lifestyle footwear catering to casual, athleisure, and fashion-led demand in India. The company operates with multiple engagement structures across brands, allowing flexibility in sourcing, manufacturing, and retail execution.

For one brand, Brandman follows a third-party manufacturing model, where products are manufactured through external vendors as per brand specifications and quality standards. This enables better control over product availability, pricing, and margins while remaining asset-light and avoiding in-house manufacturing capex.

For other brands, the company operates under distribution and retail arrangements, where finished footwear is sourced from brand owners or authorised suppliers and sold through Brandman’s offline and online channels. These agreements vary by brand and may include exclusive brand outlets, multi-brand retail, marketplace sales, or B2B supply to third-party retailers.

(₹ lakhs)

Revenue concentration has reduced meaningfully over time, with Brand 1’s share declining from ~100% in FY23 to ~46% in 9M FY26, indicating increasing diversification across brands. This shift lowers single-brand dependency risk, though Brand 1 (company has not disclosed the name of the brand) continues to remain the largest revenue contributor.

Revenue Bifurcation by Geography 

(₹ lakhs)

Exports have scaled sharply, contributing ~49% of revenue in 9M FY26, driven primarily by shipments to Dubai, indicating early success in international market expansion. While domestic sales remain dominant on a full-year basis, the rising export mix improves geographic diversification but also introduces currency and execution risks going forward.

Domestic Wise revenue remains highly concentrated in Delhi, which continues to be the company’s largest market, contributing ~63.0% in FY25, ~79.3% in FY24, and ~68.2% in FY23, reflecting the company’s strong retail and distribution presence in the NCR region.

Beyond Delhi, Haryana and Uttar Pradesh emerge as key contributors, accounting for ~11.8% and ~6.0% of revenue respectively in FY25, indicating growing traction in adjacent northern markets. Other states such as Gujarat, Uttarakhand, Punjab, and Chandigarh contribute smaller but steady shares, pointing to gradual geographic diversification, though revenue concentration in a few northern states remains a structural feature of the business.

Revenue Bifurcation by Channel 

(₹ lakhs)

The revenue mix is shifting away from a B2B-heavy structure toward B2C and export-led channels, with Export B2B and B2C together contributing ~86% of revenue in 9M FY26. This transition improves scalability and brand visibility but also increases exposure to consumer demand volatility and international execution risk.

Revenue Bifurcation by Retail Stores 

Offline retail revenue is EBO-led, with exclusive brand outlets accounting for the bulk of store-level sales, reflecting stronger brand pull and higher throughput per store. The Company currently operates 11 EBOs and 3 MBOs out of a total of 14 stores under the trademark Sneakrz. These outlets provide access to customers across key markets. Going forward, the Company plans to expand its presence by opening additional EBOs and MBOs in tier-II cities to strengthen local reach and improve accessibility.

The company expanded its retail footprint from 8 stores in FY23 to 19 stores by 9M FY26, which supported a sharp increase in B2C revenue from ₹1,881 lakh in FY23 to ₹3,584 lakh in 9M FY26. However, this expansion has led to a decline in store productivity, with revenue per square foot moderating from ₹22,821 in FY23 to ₹12,129 in 9M FY26, indicating that newer stores are still in the ramp-up phase.

Despite higher revenues, units sold have remained largely flat, at 47,515 units in FY23 versus 52,721 units in 9M FY26, suggesting growth has been driven more by higher average transaction values (₹3,959 to ₹6,798) than volume expansion. Additionally, elevated inventory days at 298 days in 9M till Dec 2025, increase working capital intensity, while the sharp jump in EBITDA margin from 9.7% in FY24 to 23.0% in FY25 and 28.4% in 9M FY26 raises questions on sustainability as fixed costs and store-level economics normalise.

IPO Objectives 

The IPO objectives given by the company are:

• Funding Capital Expenditure for expansion of our New Retail Network by launching 15 Exclusive Brand Outlets (EBOs) and Multi-Brand Outlets (MBOs) 

• Working Capital Requirements for New EBOs and MBOs

• Working Capital Requirements for Existing EBOs and MBOs

Management + Promoters 

The company is promoted by Arun Malhotra, Kavya Malhotra, and Kashika Malhotra, who collectively oversee strategy, brand partnerships, and day-to-day operations. The management has demonstrated strong execution capability by scaling the retail footprint rapidly and diversifying revenue across channels and geographies. However, the sharp expansion, rising working capital intensity, and sudden margin improvement make capital allocation discipline and operational controls key monitorables as the business transitions from growth-led scaling to sustainability-led execution.

Peer Analysis 

It is important to note that the listed peers included in the DRHP are not directly comparable to Brandman Retail due to significant differences in scale and business models. While Brandman operates at a revenue scale of ~₹135 crore, peers such as Bata India (~₹3,489 crore) and Redtape (~₹2,021 crore) are 15–25x larger and largely follow owned-brand, manufacturing-led or deeply integrated retail models.

Brandman’s higher EBITDA margin (~23%) and ROE (~108.5%) are partly a function of its asset-light structure and smaller equity base, whereas peers operate with EBITDA margins of ~9–22% and ROE of ~7–24% on much larger capital employed. As a result, valuation and performance metrics should be interpreted cautiously, with greater emphasis on sustainability of margins and working capital discipline as Brandman scales.

Through LMVT Framework:

Leadership: The promoters have scaled the business quickly and improved profitability in a short span. The next phase will test governance, inventory control, and capital allocation discipline.

Moat: There is no visible moat; the business operates in a competitive, low–entry barrier footwear retail market. Performance remains execution-driven rather than structurally protected.

Valuation: At ~12.4x P/E, valuation looks reasonable versus peers, but is supported by margins and ROE off a small base. Sustainability of these metrics remains key.

Tailwinds: Footwear demand in India is growing at ~9–10% CAGR, driven by premiumisation and retail formalisation. These trends provide a supportive backdrop for organised players.

Bottom Line: Despite strong recent financials, the sharp spike in revenue and margins over the last year, coupled with no visible moat, flat unit volumes, and rising working capital intensity, raises sustainability concerns. Given these uncertainties and execution risks at a small base, the issue may be avoided until performance normalises and business consistency is better established.