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Footwear major Bata India on Monday reported a 73.72 per cent year-on-year decline in its standalone net profit to ₹13.76 crore for the second quarter this fiscal, as its revenue fell during the period. The company’s net profit for the second quarter last fiscal stood at ₹52.36 crore. According to a stock exchange filing, the footwear maker’s revenue from operations in Q2FY26 declined to ₹801.33 crore from ₹837.14 crore during the corresponding period of FY25. The company, in a statement, said revenue fell due to deferment of purchases by channel partners and customers since the announcement of GST rate rationalization. Further, disruption in one of the largest warehouses in July 2025 also had temporary business impact. However, the quarter ended on a positive note, with signs of recovery in the festive season. During Q2FY26, total expenses rose 1.34 per cent y-o-y at ₹795.21 crore. EBIDTA for the quarter stood at ₹166.4 crore compared to ₹191.8 crore for Q2FY25, primarily owing to lower gross margin, led by higher markdown (inventory clearance pre-festive) and higher marketing investments. The results for the second quarter also included a one-time exceptional expenditure of around ₹8.3 crore towards VRS in one factory. Commenting on the performance, Gunjan Shah, MD & CEO, Bata India, said, “With the roll out of GST 2.0 and pre-festive buying enthusiasm, the demand has started to revive. While overall quarter two did have muted demand adversely impacted by the GST 2.0 transition, we are seeing positive signs of recovery this festive season post September 22.” The company said it had passed on the GST benefits to its customers much prior to the official announcements to unclog the demand pipeline. Shah said premium products were showing robust growth in brands like Hush Puppies and Power. “Our Victoria Ballerina campaign touched the right chords and attracted female customers, helping us gain an additional 1 per cent in the Sales mix,” he said. The company added 30 franchise stores in the second quarter as it continues to expand in smaller towns and semi-urban markets. During the quarter, inventory efficiencies both in terms of quantity and quality continued to show strong progress. Zero Base Merchandising Project was scaled to 200 stores with continuing to show exciting results on consumer experience and revenue per sqft. “With a strong retail footprint of nearly 2,000 stores and a refreshed product portfolio catering to everyday and occasion-wear needs, early festive trends indicate steady demand recovery,” Bata added. Published on October 27, 2025
