Bata India: Q2 revenue dips on GST transition, warehouse disruption

Bata India Limited reported Q2FY26 revenue from operations at INR 8,013 million, a decrease from INR 8,371 million in Q2FY25. This was primarily due to deferred purchases by channel partners and customers following GST rate rationalization and a temporary disruption in a major warehouse. The company’s EBIDTA for the quarter stood at INR 1,664 million, down from INR 1,918 million in Q2FY25, attributed to lower gross margins from inventory clearance and increased marketing investments. An exceptional expenditure of ~INR 83 million was incurred towards a Voluntary Retirement Scheme (VRS) in one factory as part of its long-term strategy.

Despite these challenges, Bata India noted positive signs of recovery in the festive season post-September 22. This included strong growth in premium brands like Hush Puppies and Power, and increased female customer engagement through its Victoria Ballerina campaign. The company also expanded its footprint by adding 30 Franchise Stores and continued initiatives in inventory management and merchandising, including scaling its Zero Base Merchandising Project to 200 stores.

For the half-year ended September 30, 2025, standalone profit before tax was INR 888.20 million, and consolidated profit before tax was INR 893.62 million. Total comprehensive income for the period was INR 126.55 million for standalone results and INR 127.91 million for consolidated results. The company maintains a cautious but optimistic outlook for recovery in the latter half of the year, emphasizing its strong market position, wide network, and focus on cost efficiencies.