Bata India announced its Q2 results, which were impacted by the GST 2.0 transition. Revenue stood at Rs. 8,013 million, compared to Rs. 8,371 million in Q2FY25. The company experienced deferred purchases from channel partners and customers due to the GST rate rationalization. Despite these challenges, Bata ended the quarter with positive signs of recovery in the festive season and sees consumer momentum auguring well.
Q2 Financial Performance
Footwear major Bata India Limited announced its results for the quarter ended September 30, 2025. Revenue from operations for the quarter stood at Rs. 8,013 million, versus Rs. 8,371 million in Q2FY25, reflecting deferred purchases due to GST rate rationalization. A disruption in one of the largest warehouses in July 2025 also contributed to the impact. However, the quarter concluded positively, indicating recovery signs during the festive season.
Profitability and Strategic Initiatives
EBIDTA for the quarter reached Rs. 1,664 million compared to Rs. 1,918 million in Q2FY25, primarily due to lower gross margin stemming from higher markdown and marketing investments. The results also include a one-time exceptional expenditure of approximately Rs. 83 million towards VRS in one factory. This move aligns with the company’s long-term strategy to enhance capability, agility, and supply chain efficiency.
Operational Efficiencies and Retail Expansion
Inventory efficiencies, both in quantity and quality, have demonstrated significant progress. The Zero Base Merchandising Project has been expanded to 200 stores, yielding positive results in consumer experience and revenue per square foot. With a strong retail footprint approaching 2,000 stores, and a refreshed product portfolio, Bata is observing early festive trends indicating stable demand recovery.
Management Commentary
Gunjan Shah, MD and CEO of Bata India Limited, commented, “With the roll out of GST 2.0 and pre-festive buying enthusiasm, the demand has started to revive. While overall Quarter 2 did have muted demand adversely impacted by the GST 2.0 transition, we are seeing positive signs of recovery this festive season post 22nd Sept. We reported revenue of INR 8,013 Million with key highlights:
- Premium products showing robust growth in brands like Hush Puppies and Power.
- Our Victoria Ballerina campaign touched the right chords and attracted female customers, helping us gain additional 1% in the Sales mix.
- We also achieved highest weekly pairage contribution from our Power Easy Slide collection.
- We passed on the GST benefits to our customers much prior to the official announcements, to unclog the demand pipeline.
- We added 30 Franchise Stores in the quarter as we continue to expand in smaller towns / semi-urban markets.
We continue to accelerate on managing inventory, merchandising and decluttering initiatives. In line with our long-term strategy towards bringing best-in-class efficiency standards, we have undertaken another VRS in one of our manufacturing units.
We remain cautiously optimistic about recovery towards balance of this year, backed by our strong market positioning and wide network while maintaining strong focus on cost efficiencies.”
Source: BSE
