Mirza International Q3 FY26 – ₹118 Cr Quarterly Revenue, -₹7.3 Cr PAT, Book Value > CMP, and a Leather Empire with Trust Issues

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1. At a Glance – Leather Jacket Pehenke Numbers Dekhte Hain

Mirza International is currently a ₹523 crore market cap company trading at around ₹37.8, which is below its book value of ₹41.7. That’s right — the market is valuing the company cheaper than its accounting self-esteem.

Latest quarterly numbers (Q3 FY26, Dec 2025) show:

• Revenue: ₹118.2 crore
• PAT: –₹7.31 crore (loss is back, folks)
• OPM: –1.1% (yes, minus)
• ROCE: ~1%
• ROE: –0.78%

Yet…

• Promoters hold a solid 73%, and they increased stake by 1.62%
• Debt is barely ₹22.8 crore (almost debt-free vibes)
• Stock trades at ~0.9x book value
• EV/EBITDA is a spicy 16.6x for a loss-making quarter

So what is this?
A luxury leather brand empire struggling to convert shoes into cash, or a value trap wearing Italian loafers?

Let’s dig in. 👇

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2. Introduction – Once Upon a Time in Kanpur

Mirza International was incorporated in 1979, back when leather exports meant actual hard work and not Instagram reels of factories.

The company built an integrated leather-to-shoe business, controlling everything from raw hides to finished footwear. Over decades, Mirza became known not just as a leather exporter, but as a brand creator, with Red Tape becoming its most recognisable label.

Fast forward to the last few years, and the story gets complicated:

• Growth slowed
• Margins shrank
• Cash flows became moody
• Corporate restructuring entered the chat

And finally — in 2023 — Mirza split its soul:

• REDTAPE Limited took away the branded domestic business
• Mirza International was left with exports, leather, and overseas play

Now the question is simple:
👉 Is Mirza International a leaner export-focused business… or a hollow shell post demerger?

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3. Business Model – WTF Do They Even Do?

Mirza operates across three verticals:

a) Tannery Division – The Leather Kitchen

This is where raw hides become finished leather.
Inputs include:

• Raw hides
• Wet blue
• Crust leather

Outputs:

• Finished leather used internally
• Exports to global buyers

This division is capital-intensive, inventory-heavy, and margin-sensitive to:

• Hide prices
• Environmental norms
• Global demand cycles

b) Shoe Division – Actual Shoes, Not Just Talk

This is the core value-addition business:

• Finished leather shoes
• Export-oriented
• OEM + branded exports

Installed capacity:

• ~6.4 million pairs annually
• FY22 utilisation was only ~66%

Idle capacity = opportunity
Idle capacity + weak demand = depression

c) Garments & Accessories – Side Hustle

This is largely trading, not manufacturing:

• Lower margins
• Working-capital hungry
• Adds topline, not pride

Segment revenue FY22:

• Footwear: ~60%
• Leather: ~7%
• Garments & accessories: ~33%

So yes — shoes pay the bills, leather supplies the kitchen, garments do the timepass.

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4. Financials Overview – Numbers Ka Post-Mortem

Quarterly Comparison Table (₹ crore)

Metric	Latest Qtr (Dec-25)	YoY Qtr (Dec-24)	Prev Qtr (Sep-25)	YoY %	QoQ %
Revenue	118.21	114.38	164.36	+3.3%	–28.1%
EBITDA	–1.30	3.13	12.67	NA	–110%
PAT	–7.31	–5.69	2.15	–28.5%	–440%
EPS (₹)	–0.53	–0.41	0.16	–29%	–431%

Commentary (auditor voice):

• Revenue didn’t collapse — margins did
• EBITDA went from +₹12.7 cr to –₹1.3 cr in one quarter
• Other income saved earlier quarters, not this one
• This is not volatility — this is execution risk

Would you trust a shoe company whose profits slip more than your foot on monsoon marble? 🤔

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5. Valuation Discussion – Fair Value Range Only

⚠️ Educational exercise only. No recommendations.

Method 1: P/E (Adjusted, Because Losses)

TTM EPS ≈ ₹0.60

Industry P/E (median peers): ~40x
Apply conservative 15–20x due to:

• Loss-making quarters
• Low ROCE
• Export cyclicality

➡️ Fair EPS Value Range:
₹9 to ₹12

Method 2: EV / EBITDA

• EV ≈ ₹534 crore
• Normalised EBITDA (historical): ~₹40–45 crore in better years

Apply 8–10x (discounted):
➡️ EV range: ₹320–450 crore
➡️ Equity value range: ₹25–35/share

Method 3: DCF (Simplified Sanity Check)

Assumptions:

• Flat revenue growth
• Margin recovery to 6–7%
• Conservative terminal growth

➡️ Implied value broadly aligns with ₹30–40 band

📌 Fair Value Range (Educational):

₹25 – ₹40 per share

This fair value range is for educational purposes only and is not investment advice.

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6. What’s Cooking