BATAINDIA - Bata India

📊 NSE: BATAINDIA 🏢 Leather / Leather Products 📅 Last Updated: 12/13/2025 19:11

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, Bata.com grew by 25% YoY. Quick Commerce (Zepto & Swiggy Instamart) contributed 5.1% to turnover. Omni-channel (Home Delivery) accounted for 3.8% of retail turnover. FY24 standalone operating income was INR 3,478.41 Cr, a marginal growth of 0.78% from INR 3,451.57 Cr in FY23.

Geographic Revenue Split

Not disclosed in available documents, though the company operates in 1,635 towns across India.

Profitability Margins

FY24 standalone PAT margin was 7.5% (INR 259.93 Cr) compared to 9.2% (INR 319.12 Cr) in FY23. Q2 FY26 PAT margin was 2.7%, a decline of 351 bps YoY. Gross margins in Q2 FY26 were impacted by early GST benefit pass-throughs and channel partner incentives.

EBITDA Margin

FY25 EBITDA margin was 21.07% compared to 22.52% in FY24. Q2 FY26 margins were pressured by a 2X increase in marketing spend (3.5% vs 1.5% LY) and a VRS cost of INR 8.3 Cr.

Credit Rating & Borrowing

ICRA maintained ratings with an interest coverage ratio of 6.31x in FY24 (down from 6.82x in FY23). Total debt/OPBDIT was 1.7x in FY24.

⚙️ Operational Drivers

Raw Materials

Canvas, rubber, leather, and plastic are the primary raw materials used for footwear production.

Capacity Expansion

The company operates 4 manufacturing units at Batanagar (Kolkata), Bataganj (Bihar), Peenya (Bangalore), and Hosur (Tamil Nadu). Specific capacity expansion figures were not disclosed.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company monitors raw material prices and inflation to mitigate adverse effects on results.

Logistics & Distribution

Omni-channel delivery is enabled in 40% of stores with a 4-hour turnaround time (TAT). Distribution network includes 2,053+ retail outlets and 1,635 towns.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is driven by premiumization through Hush Puppies (150+ EBOs), expansion into Quick Commerce (Zepto/Swiggy), and increasing town coverage to 1,635. The company is also re-indexing products at competitive price points while charging premiums for technology-driven features like Power Easy Slide and Bata Comfit.

Products & Services

Footwear (Canvas, Rubber, Leather, Plastic), Sneakers, Sports shoes, School shoes, and premium casual/formal shoes.

Brand Portfolio

Bata, Hush Puppies, Power, Bata Comfit, North Star, and Easy Slide.

New Products/Services

New product launches include Power Easy Slide and the 'float story' created over 3 years, contributing to a 14% increase in Average Selling Price (ASP).

Market Expansion

Expansion of Hush Puppies EBOs from <100 to 150+ in two years. Added 413 KROs (Key Retail Outlets) in Q2 FY26 to reach a total of 1,478.

Market Share & Ranking

The company reported gaining market share in select categories despite overall sluggish market conditions.

Strategic Alliances

Partnerships with Zepto and Swiggy Instamart for Quick Commerce in 25+ cities through 140+ superstores.

🌍 External Factors

Industry Trends

The industry is shifting toward digital channels and premiumization. Bata is positioning itself by expanding its sneaker/sports category and modernizing IT systems for better customer experience.

Competitive Landscape

Increasing competition from both domestic and international players, especially at the lower price points (bottom of the pyramid).

Competitive Moat

Bata's moat is built on its massive distribution network (2,053+ stores, 14,800 MBOs) and strong brand legacy, particularly in the school and value-added segments.

Macro Economic Sensitivity

Sensitive to inflation and raw material price volatility, which are monitored to minimize impact on sales and costs.

Consumer Behavior

Millennials and Gen Z are driving the need for continuous evolution in the product portfolio mix and digital shopping experiences.

Geopolitical Risks

Geo-political factors are monitored for their potential adverse effects on business operations and results.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to GST and customs-related regulations. The company continuously adapts to changes in government laws to minimize adverse impacts.