Bata India (500043) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue reached INR 9,789.47 million (INR 979 crores), up 3.9%-4% year-over-year, driven by both volume and price increases.

• Underlying profit before tax (PBT) grew by 22% year-over-year, supported by operational improvements.

• Store network surpassed 2,000 exclusive brand outlets (EBOs), with franchise stores expanding to 750 and ZBM covering 80% of business-contributing stores.

• Full price sales approached 88%-90%, with a continuous uptick over the last four to five quarters.

• Interim dividend of Rs. 25 per equity share declared for FY27.

Financial highlights

• Standalone and consolidated revenue from operations for Q1 FY27 was INR 9,789.47 million, up from INR 9,418.43 million year-over-year.

• Underlying PBT increased by 22% compared to the same quarter last year.

• Gross margin expanded by 130 basis points, mainly due to higher fresh sales and lower markdowns.

• Cash operating profit rose 7.6% year-over-year to INR 2,166 million.

• Standalone net profit for the quarter was INR 637.93 million, up from INR 517.00 million year-over-year.

Outlook and guidance

• Management remains optimistic about future growth, focusing on retail expansion, digital growth, and inventory efficiency.

• No formal forward-looking guidance provided, but premiumization and product funnel reimagination are expected to drive growth.

• Elevated marketing spends are anticipated to continue in support of new product launches.

• Company continues to monitor the impact of new Labour Codes and geopolitical developments affecting FX rates.