Bata India Q4 margins contract as VRS expense dents profit; revenue rises 5%

Bata India reported a sharp decline in fourth-quarter profit after booking a one-time voluntary retirement scheme (VRS) expense, while revenue growth remained modest amid pressure on margins.

Earlier this year, the board had approved the introduction of a VRS for eligible workers at its Bata Shatak manufacturing facility in Hosur, Tamil Nadu, as part of its workforce rationalisation efforts.

Net profit for Q4FY26 fell 95.2% year-on-year to ₹2.2 crore from ₹45.9 crore in the corresponding quarter last year.

Revenue from operations rose 5% to ₹827.6 crore compared with ₹788.2 crore a year earlier.

EBITDA declined 15.2% year-on-year to ₹150.7 crore from ₹177.8 crore, while EBITDA margin contracted sharply to 18.2% from 22.6%.

The company said the quarter included a ₹28 crore expense related to a voluntary retirement scheme, which weighed significantly on profitability.

The board recommended a dividend of ₹9 per equity share for FY26, subject to shareholder approval at the company’s 93rd Annual General Meeting scheduled for August 12, 2026.

The record date for dividend eligibility has been fixed as July 31, 2026, while dividend payments, if approved, will begin from August 27 onwards.

The latest earnings follow a stronger performance in the December quarter, when Bata India had reported a 12.8% rise in net profit to ₹66.1 crore on revenue of ₹944.6 crore.

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During Q3FY26, EBITDA had increased 6.5% year-on-year to ₹211.7 crore, with margins improving to 22.4%. The quarter had also included a one-time exceptional expenditure of ₹6.7 crore linked to the implementation of the new Labour Code.

Ahead of the earnings announcement, shares of Bata India closed 1.09% lower at ₹691.10 on the NSE.