Liberty Shoes Ltd Receives Credit Rating Reaffirmation from CARE Ratings

Liberty Shoes Ltd announced that CARE Ratings Limited has reaffirmed the credit ratings assigned to its banking facilities on December 19, 2025. The rating affirmation was communicated to stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

CARE Ratings Limited has maintained its assessment of the company's creditworthiness across different facility types:

Facility Type:	Rating
Short-term Bank Facilities:	CARE A2
Long-term Bank Facilities:	CARE BBB- with Stable Outlook

Financial Performance Recognition

The affirmation of these ratings reflects Liberty Shoes Ltd's stable financial performance, according to the company's announcement. This stability in credit assessment demonstrates the rating agency's confidence in the company's ability to meet its financial obligations across both short-term and long-term horizons.

The stable outlook on long-term facilities indicates CARE Ratings' expectation that the company's credit profile will remain consistent in the near term. This assessment provides stakeholders with insight into the company's financial health and operational stability.

Business Benefits

The reaffirmed credit ratings provide several operational advantages for Liberty Shoes Ltd:

Continued access to competitive and favorable interest rates on sanctioned credit limits
Enhanced liquidity position support
Improved financial flexibility for business operations
Maintained credibility with banking partners and financial institutions

The company emphasized that owing to this rating affirmation, it continues to enjoy competitive interest rates, which directly impacts its cost of capital and overall financial efficiency. This advantage in borrowing costs can contribute to improved profitability and operational flexibility.

Strategic Implications

Liberty Shoes Ltd believes the reaffirmed ratings will further strengthen its financial position by supporting liquidity and providing greater financial flexibility. The stable credit profile enables the company to maintain its banking relationships and access credit facilities at favorable terms, which is crucial for business continuity and growth initiatives.

The rating reaffirmation serves as an external validation of the company's financial management and operational performance, providing confidence to investors, lenders, and other stakeholders about the company's creditworthiness and financial stability.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.04%	+3.65%	-6.20%	-30.70%	-41.44%	+92.27%

Liberty Shoes has announced its financial results for the second quarter and half-year ended September 30, 2025, showcasing a significant improvement in profitability despite modest revenue growth.

Key Financial Highlights

Particulars (in ₹ crore)	Q2 FY2026	Q2 FY2025	YoY Change
Revenue	174.23	171.80	+1.41%
EBITDA	15.10	14.60	+3.42%
EBITDA Margin	8.69%	8.49%	+20 bps
Net Profit	2.00	0.92	+117.39%

Revenue and Profitability

Liberty Shoes reported a revenue of ₹174.23 crore for Q2 FY2026, marking a modest increase of 1.41% compared to ₹171.80 crore in the same quarter last year. Despite the marginal revenue growth, the company's bottom line saw a substantial improvement.

The net profit for the quarter stood at ₹2.00 crore, more than doubling from ₹0.92 crore in Q2 FY2025, representing a remarkable 117.39% year-on-year increase. This significant jump in profitability showcases the company's effective cost management and operational efficiency.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to ₹15.10 crore from ₹14.60 crore in the corresponding quarter, reflecting a 3.42% increase. The EBITDA margin improved by 20 basis points, reaching 8.69% compared to 8.49% in Q2 FY2025, indicating enhanced operational efficiency.

Half-Year Performance

For the half-year ended September 30, 2025, Liberty Shoes reported:

Particulars (in ₹ crore)	H1 FY2026	H1 FY2025	YoY Change
Revenue	347.02	327.72	+5.89%
Net Profit	5.30	5.58	-5.02%

The company's revenue for the first half of FY2026 grew by 5.89% to ₹347.02 crore, up from ₹327.72 crore in the same period last year. However, the net profit for H1 FY2026 slightly decreased to ₹5.30 crore from ₹5.58 crore in H1 FY2025.

Additional Financial Details

Liberty Shoes reported that its total assets increased to ₹510.65 crore as of September 30, 2025, from ₹496.63 crore as of March 31, 2025. The company's employee benefits expense rose to ₹71.83 crore for the half year, compared to ₹61.97 crore in the corresponding previous period.

The basic earnings per share for the half year stood at ₹3.11, down from ₹3.28 in the previous year.

Conclusion

Liberty Shoes' Q2 FY2026 results demonstrate the company's ability to enhance profitability through operational improvements, even with modest top-line growth. The substantial increase in net profit and the improvement in EBITDA margin are positive indicators for the company's financial health. However, the slight decrease in half-yearly net profit suggests that the company may face ongoing challenges in maintaining consistent profitability growth across longer periods.