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Bata India (500043) investor relations material
Bata India Q2 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Transformation initiatives focused on inventory declutter, store experience, marketing, network expansion, and product portfolio reimagination are nearing completion, with significant progress in inventory reduction and customer experience improvements.
Expansion is accelerating through franchise and shop-in-shop models, with ambitions to increase store count and market penetration, including digital and physical presence growth.
Product portfolio is being sharpened, leveraging successful launches like Victoria Ballerina and Power Easy Slide.
Standalone and consolidated unaudited financial results for the quarter and half year ended September 30, 2025, were approved and reviewed by the Board and Audit Committee on October 27, 2025.
Both standalone and consolidated results were subject to limited review by statutory auditors, with no material misstatements identified.
Financial highlights
Revenue from operations for Q2 FY26 was INR 8,013.34 million, a 2.7% year-over-year increase, with total income at INR 8,225.83 million; half-year revenue was INR 17,431.77 million.
Gross margin declined by 155 basis points year-over-year; EBITDA margin fell by 221 basis points, and PAT margin decreased by 351 basis points.
Standalone net profit for Q2 FY26 was INR 137.59 million, and for H1 FY26 was INR 654.59 million, compared to INR 2,267.31 million in H1 FY25.
Marketing (A&P) spend increased to 3.5% of revenue from 1.5% in the prior period.
Exceptional items included VRS expenses of INR 83 million in Q2 FY26 and INR 130.47 million for H1 FY26.
Outlook and guidance
Management expects margin recovery as one-off disruptions (GST, inventory clearance) subside and benefits from inventory health and reduced markdowns materialize in coming quarters.
Targeting 2,000 franchise doors by December 2026, with over 200 new stores planned and coverage expansion to 1,635 towns and 14,800 MBOs.
Continued focus on digital sales, with Bata.com growing 25% year-over-year.
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