Bata India Q3 profit rises 13% on premium brand demand, margin expansion

Bata India Ltd on Monday (February 9) reported its third-quarter results, posting a net profit of ₹66.1 crore, a year-on-year increase of 12.8%, compared with ₹58.6 crore in the corresponding quarter last year. Revenue for the quarter stood at ₹944.6 crore, up 2.8% year-on-year from ₹918.7 crore.

EBITDA for the quarter rose 6.5% year-on-year to ₹211.7 crore, compared with ₹198.7 crore in the same period last year. EBITDA margin improved to 22.4% from 21.6% on a year-on-year basis.

Profit before exceptional items and tax for the quarter grew 10% year-on-year to ₹96.8 crore, compared with ₹88.1 crore in Q3 FY25. Profit before tax rose 15% year-on-year to ₹88.9 crore, compared with ₹77.3 crore in Q3 FY25. The quarterly results include a one-time exceptional expenditure of ₹6.7 crore recognised under the new Labour Code.

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Bata India said premium products continued to record robust growth during the quarter, led by brands such as Hush Puppies and Power. The company also reported a steady quarter-on-quarter increase in fresh sales contribution. During the quarter, Bata India added 27 franchise stores, expanding its retail footprint.

The Zero Base Merchandising (ZBM) project was scaled to more than 400 stores, supporting improvements in consumer experience and revenue per square foot. The company said inventory efficiencies improved further in both quantity and quality. Gross inventory declined by about 11% during the quarter.

Gunjan Shah, MD and CEO - Bata India Limited, said, "The improvement in demand, post roll out of GST 2.0, continued during the quarter along with a few green shoots, leading to strong EBIDTA performance backed by sales and margin growth.

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All channels delivered growth during the quarter with solid gross margin management. Overall, our results this quarter demonstrate disciplined execution of the key strategic levers across channels."

Shares of Bata India Ltd ended at ₹882.50, up by ₹34.35, or 4.05%, on the BSE.