New Delhi: It was a rough start at the onset of the financial year for Bata India, as it reported a sharp 70% plunge in net profit to ₹52 crore for the April–June 2025 quarter, down from ₹174 crore a year ago. The steep fall shows how weak spending, bad weather, and economic uncertainty could build up pressure on even India’s top brands.

While revenues held steady at ₹941.85 crore, which barely changed from last year, the pressure on profitability was obvious. The company's results point to the broader strain in India’s retail landscape, where shoppers are becoming more selective with discretionary spending.

Investors responded swiftly: Bata’s stock slid 3% on Tuesday to ₹1,146.65, just above its 52-week low, as the company continued to underperform the market. So far this year, the stock has lost 18%, in contrast to the BSE Sensex’s 2.6% gain.

Yet, amid the gloom, there are signs of resilience. Bata’s premium lines, namely Hush Puppies, Comfit, and Floatz showed strength, bucking the overall slowdown. Operational performance also improved, with EBITDA rising 7% to ₹200 crore and margins widening to 21.1%, up by 150 basis points.

"We continued to push ahead with our affordability initiatives across categories to drive volume-led growth," management said in a statement, pointing to efforts aimed at keeping products within reach for value-conscious shoppers.

In a bid to broaden its reach, Bata added 20 new franchise stores during the quarter, targeting smaller towns and semi-urban markets where demand potential remains untapped. The company remains cautiously optimistic about a demand recovery in the second half of the fiscal year.

Bata’s leadership is juggling short-term pressures with long-term bets, focusing on same-store growth, portfolio evolution, and streamlined inventory management as its key strategic levers.

Analysts are holding off on fresh projections until the company’s earnings call on August 14, but some remain upbeat about Bata’s longer-term prospects, citing its iconic brand, strong distribution network, and solid balance sheet as enduring strengths. For now, though, Bata’s Q1 results serve as a cautionary tale of the challenges facing consumer brands in today’s unpredictable market, where staying relevant, affordable, and agile is more important than ever.