Bata India, one of the country’s most recognized footwear brands, announced its Q1 FY26 financial results on 11 August 2025, reporting a sharp decline in profitability despite nearly flat revenue.
For the quarter ended 30 June 2025, the company posted a consolidated revenue of ₹941.85 crore, down marginally by 0.29% YoY from ₹944.63 crore in Q1 FY25. However, profit after tax (PAT) dropped significantly by 70.13% YoY to ₹52 crore compared to ₹174.06 crore in the same quarter last year.
Consolidated Financial Performance
The numbers indicate that while Bata India managed to maintain sales levels, profitability was hit severely, possibly due to higher operating expenses, cost pressures, or inventory adjustments.
| Particulars | Q1 FY26 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 941.85 | 944.63 | -0.29% |
| Profit Before Tax (PBT) | 215.80 | 201.18 | +7.26% |
| Profit After Tax (PAT) | 52.00 | 174.06 | -70.13% |
| Net Profit Margin (%) | 5.52% | 18.42% | -12.90 pp |
Interestingly, PBT showed an increase of over 7%, but PAT dropped steeply, which could indicate extraordinary expenses, tax adjustments, or non-operating losses during the quarter.
Standalone Financial Performance
Standalone performance mirrors the consolidated trend, with revenue holding steady but profits taking a major hit.
| Particulars | Q1 FY26 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 941.84 | 944.63 | -0.30% |
| Profit Before Tax (PBT) | 215.45 | 201.33 | +7.01% |
| Profit After Tax (PAT) | 51.70 | 174.37 | -70.35% |
| Net Profit Margin (%) | 5.49% | 18.46% | -12.97 pp |
Key Highlights from Q1 FY26
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Revenue Stability: Sales remained steady despite muted consumer spending in certain regions.
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Profit Collapse: PAT fell sharply due to possible higher input costs, operational inefficiencies, or other one-off expenses.
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Margins Under Pressure: Net profit margin declined from over 18% to under 6%, indicating reduced cost control efficiency.
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PBT Growth vs PAT Decline: The discrepancy between PBT growth and PAT decline suggests tax or extraordinary cost factors played a major role.
Bata India Share Price Performance
| Date | Opening Price (₹) | Current Price (₹) | Change |
|---|---|---|---|
| 12 Aug 2025 | 1,177.50 | 1,163.90 | -1.15% |
Historical Returns:
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1-Year: -17.99%
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5-Year: -5.72%
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Max: +1,237.82%
Despite being a long-term wealth creator, recent performance shows significant weakness due to sluggish earnings growth.
Operational Analysis
Flat Sales, Cost Pressure
Bata India managed to keep sales stable despite inflationary headwinds, but rising raw material prices, increased rental costs, and marketing expenses could have impacted net earnings.
Retail Footprint
The company continues to expand in Tier-2 and Tier-3 cities, leveraging its brand equity to tap semi-urban markets.
Digital Push
Bata’s e-commerce and omni-channel strategy have contributed to sustaining revenue growth, though online sales margins are often lower than physical retail.
Inventory Management
Possible changes in inventory valuation and clearance sales may have pressured profitability in Q1 FY26.
Peer Comparison (Q1 FY26)
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | YoY PAT Growth (%) | Net Margin (%) |
|---|---|---|---|---|
| Bata India | 941.85 | 52.00 | -70.13% | 5.52% |
| Relaxo Footwear | 785.40 | 94.50 | +12.30% | 12.03% |
| Metro Brands | 635.20 | 88.40 | +4.15% | 13.91% |
Bata India’s margin is significantly lower than peers, highlighting the competitive and cost-related pressures it is facing.
Outlook for FY26
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Focus on Premium Products: Shifting towards higher-margin product categories could help revive profitability.
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Cost Optimization: Negotiating better raw material rates and optimizing store operations may offset cost pressures.
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Marketing & Brand Engagement: Strengthening brand loyalty through targeted campaigns can help increase average selling prices (ASP).
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Expansion in Rural Markets: Given urban market saturation, rural expansion offers a growth opportunity.
Risks to Watch
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Prolonged inflation impacting discretionary spending.
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Competitive price wars from domestic and international footwear brands.
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Currency fluctuations affecting imports of raw materials.
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Execution risks in digital transformation strategies.
Conclusion
The Bata India Q1 FY26 results underline a challenging quarter for the footwear major — revenue stability couldn’t prevent a steep profit drop. While the company’s brand power and retail presence remain strong, the significant decline in net margins raises concerns about cost control and operational efficiency.
Investors may want to watch the upcoming quarters closely for signs of margin recovery, cost rationalization, and improved consumer demand before taking fresh positions in the stock.
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