Bata India (500043) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue rose 7.5% YoY to Rs 8,617.82m; adjusted PBT increased 32% to Rs 360m and cash operating profit grew 9.3% to Rs 1,588m.

• Priorities include consumer-led stores and products, franchise and digital growth, broader distribution, inventory agility and youth-relevant product renewal.

Financial highlights

• Q2 consolidated PBT was Rs 246.96m versus Rs 192.93m; net profit was Rs 181.19m versus Rs 138.95m, and EPS was Rs 1.41 versus Rs 1.08.

• H1 consolidated revenue was Rs 18,407.29m versus Rs 17,431.88m; net profit was Rs 821.03m versus Rs 658.94m, and PBT was Rs 1,105.91m versus Rs 893.62m.

• Gross margin was Rs 4,780m, up 8 bps YoY despite a 58 bps adverse channel-mix impact; PBT margin rose 76 bps to 4.2%.

• Fresh products accounted for 84%–85% of sales; premium brands including Floatz and Hush Puppies supported ASP growth of 5%–6%.

• H1 operating cash flow was Rs 2,680.59m; capex on property, plant, equipment and intangibles was Rs 400.76m.

Outlook and guidance

• Reignite India 2030 targets doubling turnover, with a mid-single- to double-digit CAGR ambition and an endeavor to reach mid-teens growth; management aims to more than double profits alongside turnover, subject to external factors.

• New global product lines are expected largely in H2 FY27 to support consumer appeal, volumes and ASP growth.

• KRO count grew 2.6x, with a target to exceed 5,000 by Q3 FY27; the 3-hour delivery model covered ~1,800 serviceable pin codes.