Bata India Q2 FY26 Earnings Results

Bata India Ltd, a leading footwear manufacturer and retailer, operates through extensive retail and wholesale networks across India.

Financial Summary (Q2 FY26):

• Revenues declined 4.3% year on year to ₹801 crore from ₹837 crore.
• Total expenses increased marginally by 1.27% to ₹795 crore from ₹785 crore.
• Consolidated net profit
•  plummeted 73.08% to ₹14 crore from ₹52 crore.
• Earnings per share (EPS) decreased 73.27% to ₹1.08 from ₹4.04.

Key Highlights:

• The revenue drop was primarily driven by deferred purchases due to transitional GST reforms and a temporary disruption caused by warehouse issues.
• EBITDA fell 16.7% to ₹166 crore with margins contracting from 22.4% to 20.1%, reflecting weak gross margins.
• Premium brands like Ballerina and Easy Slide showed better performance amidst overall muted demand.
• Inventory levels improved in both quality and quantity, supported by the Zero Base Merchandising Project implemented across 200 stores.
• Management remains cautiously optimistic about recovery backed by digital growth, premiumisation, and improving festive demand post September 22.

Outlook:

With nearly 2,000 stores and a revamped product portfolio addressing daily and occasion wear, Bata India anticipates a gradual pickup in consumer momentum in the forthcoming quarters, despite near-term challenges.

This considerable profit fall underscores the impact of external headwinds on demand and margins but also highlights strategic initiatives fueling potential recovery.

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