Bata India has reported a 7.5% turnover growth for the quarter ending September 2026, reaching ₹8.6 million. The company highlighted a focus on making stores consumer-led, introducing new products, and expanding its store network through franchisees and e-commerce. Adjusted profit before tax saw a significant rise of over 31% year-on-year, with an operating cash profit increase of over 9%.
Bata India Announces Q2 FY27 Financial Highlights
Bata India Limited has reported a turnover of ₹8.6 million for the quarter ending September 2026, marking a 7.5% growth over the previous year. This performance continues a positive trajectory for the fourth consecutive quarter. The company attributes this growth to increased Average Selling Price (ASP) and a rise in store footfalls, despite market headwinds.
Strategic Focus and Performance Drivers
The company’s strategy for growth is centered around three key areas: making stores more consumer-led to drive like-for-like growth, introducing new and value-driven products, and expanding its retail presence through franchisees, e-commerce, and youth-focused offerings. Bata India observed double-digit growth in franchisee and I&D channels, with e-commerce also growing at a healthy pace. The advertising spend increased by over 4% half-yearly, enhancing reach and website engagement. Inventory management remains a focus, with stock turns exceeding 2.6 and freshness over 90%.
Profitability and Outlook
Operationally, efforts including the ZBM and Customer First projects continue to contribute to margins. The adjusted profit before tax saw a substantial increase of over 31% compared to the same quarter last year. The adjusted operating cash profit grew by over 9% year-on-year. Looking ahead, Bata India is committed to becoming more relevant to younger consumers, focusing on premiumization and addressing the sneakerization trend. The company aims to double its turnover by 2030, targeting mid-single-digit to double-digit growth rates over the next four years.
Brand Relevance and Future Initiatives
Management acknowledges the challenge of connecting with the younger generation and plans to leverage new product lines, including those in the sneaker category, to boost volume and ASP. The company is also investing in community building and rightsizing marketing spend for better ROI. Initiatives such as focusing on Bata and Hush Puppies brands are expected to drive growth. The company is also selectively looking at COCO store opportunities, aiming for double-digit new store openings.
Gross Margin and Retail Expansion
Gross margin improvement is attributed to premiumization and efficient inventory management, although a cautious approach remains due to commodity and currency volatility. The company has seen a 70-80 basis point improvement in gross margin, with slight dilution due to channel mix changes. Bata India is optimistic about continuing gross margin improvement by focusing on channel mix and profitability. Expansion plans include both franchisee and opportunistic COCO store openings, with a focus on commercially viable locations and renovations.
Source: BSE
