Bata India Q2 Results: Net profit rises nearly 29% to ₹18 crore, revenue up 7.6%

Bata India

reported a 28.6% year-on-year (YoY) increase in net profit to ₹18 crore for the second quarter of FY27, compared with ₹14 crore in the corresponding quarter last year.

The footwear maker's revenue from operations rose 7.6% to ₹862 crore in Q2FY27 from ₹801 crore a year ago.

However, operating performance remained largely flat.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹144 crore, marginally lower than ₹145 crore in the year-ago quarter. EBITDA margin contracted to 16.7% from 18.1% in the corresponding period last year.

Shares of Bata India ended 1.9% higher at ₹649.80 on the NSE. The stock gained 6.4% over the past month but has declined 31.1% so far this year.

The company said one-off expenses during the quarter included a non-cash forex loss of ₹3 crore on licence fees due to continued currency depreciation and a one-time asset write-off of ₹3.9 crore. Other income was lower by ₹4.6 crore due to the distribution of surplus funds worth ₹321.3 crore as a special dividend during the quarter.

Commenting on the results, Managing Director and CEO Sanjay S Rao, who took charge on October 1, 2026, highlighted robust like-for-like (LFL) and average selling price (ASP) growth in retail, along with double-digit growth in the franchise and industrial and institutional (I&D) channels.

Rao said, “Gross margin improved marginally, and operating performance continued to strengthen.” He added that inventory had improved in both quantity and quality, with freshness at 92% and net stock 7% lower than on September 30, 2025.

Bata India now has over 2,000 stores, including franchise outlets, and more than 3,800 key retail outlets (KROs). Its Zero Base Merchandising initiative, implemented across 850 stores, has improved consumer experience and revenue per square foot.

Despite higher input costs and wage revisions, improved inventory freshness and prudent sourcing helped the company achieve its “highest full-price sales and lower markdowns”, Rao said.

The company remains focused on profitable growth through premiumisation, network expansion, sharper assortment, volume growth, consumer engagement, operational excellence and disciplined capital allocation. Rao added, “With festive business shifting to Q3, we expect the growth momentum to continue.”

Earlier in August, the company also reported an interim dividend of ₹25 per equity share, with a face value of ₹5 each, equivalent to 500%.