Bata India Q2 profit slumps 73% on higher costs; festive recovery underway

Footwear major Bata India Ltd

 on Monday reported a 73.26% year-on-year decline in consolidated net profit to ₹13.9 crore for the quarter ended September 30, 2025, hurt by lower revenue and rising expenses amid the transition to the new GST 2.0 regime. The company had posted a profit of ₹51.98 crore in the same period last year.

According to a regulatory filing, consolidated revenue from operations fell 4.3% to ₹801.33 crore during the July–September quarter, compared with ₹837.14 crore a year ago. The decline was mainly due to deferred purchases by channel partners and customers following the GST rate rationalisation, and temporary disruption at one of its largest warehouses in July 2025, the company said in a press release.

EBIDTA stood at ₹166.4 crore, down from ₹191.8 crore a year earlier, as gross margins came under pressure from higher markdowns for pre-festive inventory clearance and increased marketing spends. The quarter’s performance also included a one-time exceptional expenditure of around ₹8.3 crore toward a voluntary retirement scheme (VRS) at one factory, in line with Bata’s long-term strategy to enhance efficiency in its supply chain.

Bata said demand began to improve toward the end of the quarter, with festive sales showing early signs of recovery. Premium brands like Hush Puppies and Power delivered strong growth, while Ballerina and Easy Slide styles led category expansion, reflecting consumers’ growing preference for fashionable yet comfortable footwear.

Managing Director and CEO Gunjan Shah said the company passed on GST benefits to customers ahead of official announcements to revive demand. Bata also added 30 new franchise stores during the quarter as part of its expansion into smaller towns and semi-urban markets.

With nearly 2,000 stores and a refreshed product portfolio, the company remains cautiously optimistic about demand recovery in the second half of the fiscal year, supported by festive momentum and cost-efficiency measures.