Bata India (500043) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 featured flat to moderate revenue growth, with operational efficiencies and strategic initiatives in merchandising, value, and premiumization supporting profitability in a challenging environment.

• Expansion included 50 ZBM stores, nearly 200 in total, and franchise stores reaching 644, with a focus on new towns, digital channels, and younger consumers.

• Brand campaigns, influencer collaborations, and new product launches drove engagement and sales across all channels.

• Standalone and consolidated unaudited financial results for the quarter ended June 30, 2025, were approved by the Board on August 11, 2025.

• Appointment of Mr. Sidharth Vijayvergia as Chief Internal Auditor, bringing 17+ years of experience in audit, fraud risk management, and retail operations.

Financial highlights

• Revenue for Q1 FY26 was INR 9,418.54 million (consolidated), up from INR 7,877.70 million in Q1 FY25, with YoY value growth of 5.5%.

• Gross margin stood at 53.5%, down 133 bps YoY; EBITDA margin at 22.9%.

• PAT margin was -0.3% due to exceptional items; standalone net profit for Q1 FY26 was Rs. 517.00 million.

• Earnings per share (EPS) for Q1 FY26 stood at Rs. 4.02 (standalone) and Rs. 4.05 (consolidated).

• Volume and ASP were flattish, impacted by external disruptions and mix changes.

Outlook and guidance

• Management expects growth to improve as new initiatives gain traction, especially in lower price segments and premiumization, with continued focus on expanding store network and digital sales.

• Store expansion guidance is 130–150 stores per year, with an 80/20 franchise to COCO ratio, though near-term additions may be slightly lower.

• Inventory and merchandising projects are aimed at further improving efficiency and availability.