Footwear retailer Bata India reported a strong improvement in its financial performance for the second quarter of FY27, with consolidated net profit rising more than 30% year-on-year and revenue growing 7.5%. The company attributed the growth to higher average selling prices, improved retail performance and expansion across its franchise and distribution channels.
Bata India posted a consolidated net profit of ₹18.11 crore for the quarter ended September 30, 2026, compared with ₹13.89 crore in the corresponding period last year. This represented a year-on-year increase of 30.4%, reflecting better realisations and continued demand for its footwear products.
Revenue from operations increased 7.54% to ₹861.78 crore during the September quarter, against ₹801.33 crore in the year-ago period. The company’s total income, including other income, rose 6.9% to ₹879.83 crore from ₹822.76 crore a year earlier.
The results highlight Bata India’s ability to maintain revenue growth despite a shift in the festive calendar. The company said the festive season largely moved into the third quarter this year, which affected the timing of consumer purchases during the reporting period.
The company also reported an improvement in operating performance, although its EBITDA margin came under pressure. EBITDA stood at ₹161.91 crore, compared with ₹158.10 crore in the year-ago quarter, marking an increase of around 2.4%. However, the EBITDA margin contracted to 16.7% from 18.1% a year earlier, indicating that higher operating costs continued to weigh on profitability.
Bata India’s total expenses increased 7.53% year-on-year to ₹855.14 crore during the quarter. Higher input costs and wage revisions added to the company’s cost burden. The company also reported a foreign exchange loss of approximately ₹3 crore on licence fee liabilities and a one-time asset write-off of ₹3.9 crore.
Despite these pressures, the retailer managed to improve its profitability through better pricing and a stronger product mix. Its focus on premiumisation, which involves encouraging customers to purchase higher-value products, helped lift average selling prices (ASP). The company also benefited from improved full-price sales and fewer discounts.
Retail expansion and distribution drive growth
Bata India‘s Managing Director and CEO, Sanjay S Rao, said the company had recorded its fourth consecutive quarter of accelerating growth. He highlighted healthy like-for-like (LFL) growth and higher average selling prices in the retail business, alongside double-digit growth in franchise and industrial and institutional (I&D) channels.
The company currently operates more than 2,000 retail stores, including franchise outlets, and has a distribution network of over 3,800 Key Retail Outlets (KROs). It is working to improve the productivity of existing stores, strengthen its distribution network and attract more customers.
Another important part of its strategy is Zero Base Merchandising (ZBM), which has been implemented across 850 stores. The initiative focuses on improving product selection, store presentation and the overall shopping experience. According to the management, it has helped improve customer experience and revenue per square foot.
Inventory management has also improved. Bata reported inventory freshness of 92%, while its net stock was 7% lower as of September 30 compared with the corresponding period last year. Better inventory management allows the company to introduce newer merchandise while reducing the need for heavy discounts.
Rao said fresh merchandise offerings and disciplined sourcing helped Bata achieve its highest-ever full-price sales during the quarter, even as input costs and employee expenses remained elevated. The improvement in full-price sales is significant for the retailer as it helps protect margins and reduces dependence on promotional offers to attract customers.
Festive demand expected to support Q3 performance
Bata India expects its growth momentum to continue in the coming quarters, with the festive season likely to provide an additional boost to sales. Since a large part of this year’s festive calendar shifted to the December quarter, the company expects consumer demand during Q3 FY27 to support its performance.
The footwear retailer plans to focus on premiumisation, expanding its retail network, improving product assortment and increasing sales volumes. It is also looking to strengthen consumer engagement and improve operational efficiency as competition in India’s footwear market intensifies.
The company has been working to make premium footwear and international fashion trends more accessible through brands such as Hush Puppies, Power, North Star, Floatz and Bubblegummers, alongside its core Bata collections.
Meanwhile, Bata India’s shares settled at ₹649.95 apiece on the BSE on November 3, gaining 1.81%. The Q2 results were announced after market hours.
With revenue growth continuing for the fourth consecutive quarter, improved retail performance and expectations of stronger festive demand, Bata India is looking to build on its recent recovery. The coming quarter will be important in determining whether higher sales volumes and premium product demand can translate into sustained revenue growth and better operating margins.