Bata India (500043) Q4 25/26 earnings summary

Executive summary

• Achieved second consecutive quarter of accelerating, volume-led growth, with revenue up 5.1% year-over-year to INR 8,276 million in Q4 FY26 and volume up 2.8%.

• Cash flow from operations grew 18.3% year-over-year, reflecting operational efficiency improvements.

• E-commerce and digital sales surged, with Bata.com up 81% and omni-channel fulfillment from 700+ stores.

• Inventory reduced by 28% over two years and 13% year-on-year, with improved availability and fresher stock.

• Audited standalone and consolidated financial results for FY26 were approved with unmodified opinions from auditors.

Financial highlights

• Reported PBT declined by 94% due to several exceptional items, including plant closure and FX impact.

• Adjusted for exceptional items, like-to-like PBT grew 11% year-over-year; cash flow from operations up 18%.

• Standalone revenue from operations for FY26 was Rs. 35,154.84 million, up from Rs. 34,880.26 million in FY25.

• Standalone net profit for FY26 was Rs. 3,284.49 million, down slightly from Rs. 3,286.24 million in FY25.

• Employee costs structurally lower by 10% due to operational changes.

Outlook and guidance

• Management expects continued improvement in gross margins as full-price sales and markdown control take effect.

• The Board recommended a final dividend of Rs. 9 per share for FY26, subject to shareholder approval at the AGM.

• Underlying e-commerce and bata.com growth expected to continue, leveraging the store network for faster fulfillment.

• Inflation in raw materials is being monitored, with current blended inflation at 5%-6%.

• The company continues to monitor the impact of new labour codes and geopolitical developments.