Synopsis: Footwear company’s shares are in focus in today’s trading session after announcing Q2 results.
A small-cap company that is engaged in the business of manufacturing and trading of footwear and accessories through its retail and wholesale network is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.
With a market capitalization of Rs. 14,523.61 crore, the shares of Bata India Limited were trading at Rs. 1,130.50, down by 3.06 percent from its previous closing price of Rs. 1,166.20. The stock has touched an intraday low of Rs. 1,090.50, implying a downside of 6.5 percent from previous day’s close price.
Q2FY26 Results
Bata India Limited reported Rs. 801.33 crore in revenue for the second quarter of FY26, a 4.28 percent decrease over the Rs. 837.14 crore for the same period in FY25. It decreased by 14.93 percent as compared to Rs. 941.85 crore in Q1 FY26.
The company’s EBITDA for Q2 FY26 stood at Rs. 145 crore, down by 27.14 percent from Rs. 199 crore in Q1 FY26, and declined by 16.67 percent from Rs. 174 crore in Q2 FY25.
The consolidated net profit for the second quarter of FY26 was Rs. 14 crore, which was 73.08 percent lower than the Rs. 52 crore reported in the Q2 FY25 and in Q1 FY26. Profit decline was also reflected in earnings per share (EPS), which decreased to approximately Rs. 1.08 in Q2 FY26 from Rs. 4.04 in Q2 FY25.
Despite near-term headwinds, premium brands outperformed, with Ballerina and Easy Slide styles driving category growth, highlighting the consumer shift toward fashionable yet comfortable footwear. Inventory management improved in both quantity and quality, while the Zero Base Merchandising Project, now expanded to 200 stores, continued to deliver strong results in customer experience and revenue per square foot.
Outlook
With a retail network of nearly 2,000 stores and a refreshed product range catering to both daily and occasion wear, Bata India ended the quarter on a positive note, supported by improving festive season demand. The company remains optimistic about a steady recovery in consumer momentum in the coming quarters.
Analyst Outlook
Citi has maintained a ‘Sell’ rating on Bata India and reduced its target price from Rs. 850 to Rs. 750, implying a downside of 33.66 percent from CMP.
CITI noted weak growth and profitability in Q2. The company’s performance was impacted by deferred purchases following the GST rate cut and operational disruption at a major warehouse in July 2025. Profitability was further affected by higher markdowns and increased marketing spends. Consequently, Citi has cut its FY26–FY28 revenue estimates by 3–4 percent and EPS estimates by 16–24 percent.
Management View
According to Gunjan Shah, MD and CEO of Bata India, the company witnessed signs of demand revival post the GST 2.0 rollout and pre-festive buying momentum, despite muted demand earlier in Q2FY26. He highlighted that revenue stood at Rs. 8,013 million, driven by strong growth in premium brands like Hush Puppies and Power, and the successful Victoria Ballerina campaign, which helped increase the female customer base and added 1 percent to the sales mix. The Power Easy Slide collection recorded the highest weekly pairage contribution, while GST benefits were proactively passed on to customers to boost demand.
Bata also added 30 new franchise stores, strengthening its presence in smaller towns and semi-urban markets. Shah emphasized continued efforts toward inventory optimization, merchandising improvements, and operational efficiency, noting that another VRS initiative was implemented as part of its long-term strategy. He expressed cautious optimism for the remainder of the year, supported by Bata’s strong market position, wide retail network, and focus on cost efficiency.
About the company
Bata India, serving over 2.6 lakh customers daily in 2025, stands as India’s largest footwear retailer and manufacturer with 1,950+ stores, multibrand outlets, and a strong omni-channel presence, selling around 47 million pairs annually. Focused on blending fashion with comfort, Bata offers diverse brands like Red Label, Comfit, Power, NorthStar, Floatz, Bubblegummers, and Hush Puppies, making global footwear trends and premium fashion accessible to all.
Written By Akshay Sanghavi
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