Bata India Q1 results: Net profit shrinks 70.13% YoY to ₹52 crore; EBITDA margin expands

In the corresponding period a year earlier, it had clocked a net profit of ₹174 crore, the firm said in a regulatory filing.

The profit declined in the face of sluggish consumption momentum during the quarter, Bata stated.

The company's revenue from operations remained fairly stable, falling 0.29% to ₹942 crore during the quarter under review, compared to ₹945 crore in the first quarter of FY25.

At an operational level, Bata's EBITDA (earnings before interest, tax, depreciation, and amortisation) surged 7.7% YoY to ₹199 crore in Q1FY26, as against ₹185 crore in the year-ago period.

Its EBITDA margin expanded to 21.11% during the reporting quarter from 19.54% in Q1FY25.

Bata India said during the quarter ended June 30, 2024, and year ended March 31, 2025, the board of directors of the holding company approved the sale of a freehold industrial land to an unrelated party for a consideration of ₹156 crore.

The sale deed has been executed and the total consideration has also been received on the same date. There is a gain on sale of the aforesaid land (net of related expenses) of ₹133.95 crore, which has been disclosed as an exceptional item for the year-ago quarter, it added.

Commenting on the earnings, Gunjan Shah, MD and CEO of Bata India Limited, said: "The quarter witnessed headwinds accentuated by fluctuating weather patterns and geopolitical uncertainties. Amidst these and considering the demand trends, we pushed ahead our affordability initiatives across categories to drive volume-based growth."

The company's inventory efficiencies, both in terms of quantity and quality, continued to show strong progress in Q1FY26. Furthermore, it scaled up its zero base merchandising project to 194 stores with "continuing exciting results on consumer experience and revenue per sqft."

"Our initiatives on inventory, merchandising, and decluttering continue to work well. We added 20 Franchise Stores in the quarter, driven by a franchise model focused on town expansion or semi-urban markets," Shah further stated.

"We continue to maintain a balanced approach between managing near-term challenges and investing in long-term growth drivers. We are optimistic about consumption recovery towards balance of this year, backed by our strong market positioning and wide network while maintaining strong focus on cost efficiencies,” she added.

Shares of Bata closed 0.33% higher at ₹1,186 apiece on the National Stock Exchange (NSE) on Monday. However, the results were announced after the market closed.

Bata India has a total market capitalisation of ₹15,243.37 crore, as of August 11, as per data on the NSE.