Bata India shares jump 8% as Q1 net profit rises 23%; company declares ₹25 interim dividend
ADVERTISEMENT
Shares of Bata India jumped over 8% in opening trade on Wednesday after the footwear retailer reported a 23% year-on-year rise in consolidated net profit for the June quarter and declared an interim dividend of ₹25 per share.
Bata India shares rose as much as 8.42% to ₹758.45 after opening higher at ₹730.75, against the previous close of ₹699.50. At the time of reporting, the footwear retailer’s stock was trading at ₹736, up 5.22%, with a market capitalisation of ₹9,424 crore.
In an overnight development, Bata India released its June quarter earnings, reporting a 4% year-on-year growth in revenue to ₹978.9 crore, compared with ₹943 crore in the year-ago period. Profit after tax rose to ₹63.7 crore from ₹51.7 crore a year earlier, marking growth of more than 23%.
Profit before tax, excluding one-off items, increased more than 22% to ₹90.6 crore from ₹74.5 crore in Q1 FY26. The company said one-off expenses during the quarter included a non-cash foreign exchange loss of ₹2.7 crore on licence fees, owing to continued currency depreciation, and a one-time ERP implementation cost of ₹2.4 crore.
During the quarter under review, operating cash profit stood at ₹216.6 crore, up 7.6% from the year-ago period, supported by continued operational efficiency, disciplined cost management and sharper execution across channels.
The board also approved an interim dividend of ₹25 per share, entailing a total payout of ₹321.3 crore.
Gunjan Shah, Managing Director and CEO of Bata India, said the company continued its growth momentum for the third consecutive quarter, with Q1 FY27 topline growth driven by a combination of premiumisation and volume growth.
“Continuing on the growth momentum for the third consecutive quarter, we are pleased to report a topline growth of 4% in Q1 FY27, led by a blend of premiumisation and volume growth. The growth is supported by strong consumer engagement, with our advertising investments up by nearly 25%. We successfully navigated the global geopolitical situation impacting freight costs, shipping and transit time,” he said.
As per the company, consumer engagement remained strong, with advertising investments rising nearly 25% during the quarter. Bata said it was able to navigate higher freight costs, shipping disruptions and longer transit times amid the global geopolitical environment.
The company, owned by Switzerland-based Bata Corporation, said its inventory metrics improved in both quantity and quality, with gross inventory declining more than 10% from June 30, 2025. Its Zero Base Merchandising project was scaled up to 775 stores, which Bata said delivered improvements in consumer experience and revenue per square foot.
Gross margin improved by 130 basis points, supported by higher full-price sales and lower markdowns. Growth was broad-based across channels, with e-commerce recording significant growth.
Bata, which serves more than 250,000 customers every day and has been present in the Indian footwear market for nearly a century, said it remains focused on premiumisation, volume expansion, stronger consumer engagement, operational efficiency and disciplined capital allocation. The company expects momentum to continue, with monsoon-related business shifting into the September quarter.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)