Bata India Q2: GST changes, warehouse disruption hit revenue

Bata India Limited announced its Q2 FY26 financial results for the quarter and half year ended September 30, 2025. Revenue from operations for the quarter stood at INR 8,013 million, a decline from INR 8,371 million in Q2 FY25. This dip is attributed to deferred purchases by channel partners and customers following the announcement of GST rate rationalization, and a temporary business impact from a July 2025 warehouse disruption.

The company reported an EBIDTA of INR 1,664 million for the quarter, down from INR 1,918 million in Q2 FY25. This was primarily due to lower gross margins from higher markdowns for inventory clearance pre-festive and increased marketing investments. The Q2 results also include a one-time exceptional expenditure of INR 83 million towards a voluntary retirement scheme (VRS) in one factory, aligned with the company's long-term strategy to enhance supply chain efficiency.

Despite these challenges, Bata India observed positive recovery signs post-September 22, 2025, during the festive season. Initiatives like the Zero Base Merchandising Project, expanded to 200 stores, continued to show promising results. This was complemented by the addition of 30 new franchise stores in smaller towns.