Bata India shares plunge 4.8% after 73% drop in net profit in Q2FY26

Shares of Bata India plunged nearly 5% on Tuesday morning after the company reported a subdued quarter for Q2FY26. The net profit for the quarter dropped 73% YoY to ₹13 crore. The shares opened 4.8% lower at ₹1,011 apiece on the NSE on Tuesday morning.

The Q2FY26 revenue for the quarter dropped 4.2% YoY to ₹801 crore as compared to ₹831 crore in the previous year’s same quarter. On a sequential basis, the revenue dropped 14.9% QoQ to ₹941 crore. The sharp drop in revenue was primarily attributable to the deferment of purchases by channel partners due to GST rationalisation. Further, the disruption in one of the largest warehouses in July 2025 also had a temporary business impact

On the operational front, the company’s EBITDA for the quarter ended September 2025 dropped 16.7% to ₹166.3 crore as compared to ₹191 crore in the previous year’s same quarter. The EBITDA margins also dropped to 20.1% from 22.4% in the previous year’s same quarter, owing to weak gross margins.

Lastly, the net profit for the quarter dropped 73% YoY from ₹51.9 crore to ₹13 crore in the Q2FY26. Commenting on the Q2FY26 results, MD and CEO, Gunjan Shah, said, “With the rollout of GST 2.0 and pre-festive buying enthusiasm, the demand has started to revive. While overall Quarter 2 did have muted demand, adversely impacted by the GST 2.0 transition, we are seeing positive signs of recovery this festive season, post 22nd Sept”.

He further added, “We remain cautiously optimistic about recovery towards balance of this year, backed by our strong market positioning and wide network, while maintaining strong focus on cost efficiencies”.

On a YTD basis, Shares of Bata India delivered a weak 14% negative return in 2025. The management expects the GST reforms to boost consumption and revive the demand in coming quarters.