Bata India (500043) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw flat to modest revenue growth, with operational efficiencies and strategic initiatives such as Zero-Based Merchandising, value proposition projects, and portfolio evolution supporting profitability in a challenging environment.

• Retail footprint expanded with 50 ZBM stores added, nearly 200 total, and franchise stores reaching 644; total new stores for the period were 194.

• Enhanced customer experience through decluttering, digital, and eCommerce initiatives, with omni-channel and quick commerce channels growing rapidly.

• Standalone and consolidated unaudited financial results for Q1 FY26 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 and retail operations.

Financial highlights

• Revenue for Q1 FY26 was INR 9,418.54 million (consolidated), with standalone revenue at INR 9,418.43 million, showing flat to modest year-over-year growth.

• Gross margin declined by 112–133 basis points year-over-year; EBITDA margin stood at 22.9%.

• PAT margin was 5.5% before exceptional items, down by 120–157 basis points year-over-year.

• Standalone net profit for Q1 FY26 was Rs. 517.00 million; consolidated net profit was Rs. 519.99 million.

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

Outlook and guidance

• Management expects growth to improve as new initiatives gain traction, especially in lower price segments and premiumization, with continued focus on technology-driven products and expansion in Tier 2 & 3 cities.

• 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.

• Ongoing investments in digital, influencer marketing, and new product launches are expected to support future growth.