Bata India LimitedRetailBATAINDIA
Q1 FY27 concall · earnings callBata India Limited
Revenue growth was modest at 4%, but underlying PBT grew 22%, supported by cost discipline and full-price sales improvement, while management invests heavily in product reimagination and marketing for future growth.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | ₹979 Cr | 4% | |
| Underlying PBT Growth | 22% | — | |
| Gross Margin Expansion | 130 bps | — | |
| Ad Spend Growth | 25% | — | |
| Full-price Sales | close to 90% | — | |
| Stock Turns | 2.5 plus | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹918.79 Cr+1.7% YoY+9.8% QoQ | ₹58.70 Cr+1.2% YoY+12.9% QoQ | ₹4.57+1.3% YoY+13.1% QoQ |
| Q2 FY25 | ₹837.14 Cr+2.2% YoY-11.4% QoQ | ₹51.98 Cr+52.9% YoY-70.1% QoQ | ₹4.04+53% YoY-70.2% QoQ |
| Q1 FY25 | ₹944.63 Cr-1.4% YoY+18.4% QoQ | ₹174.06 Cr+62.8% YoY+173.5% QoQ | ₹13.54+62.7% YoY+173.5% QoQ |
| Q4 FY24 | ₹797.87 Cr+2.5% YoY-11.7% QoQ | ₹63.65 Cr-3% YoY+9.8% QoQ | ₹4.95-3.1% YoY+9.8% QoQ |
| Q3 FY24 | ₹903.47 Cr+0.4% YoY+10.3% QoQ | ₹57.98 Cr-30.3% YoY+70.6% QoQ | ₹4.51-30.3% YoY+70.8% QoQ |
TL;DR
- Revenue grew 4% to INR979 Cr, backed by volume growth.
- Underlying PBT grew 22%.
- Crossed 2,000 EBO stores milestone.
- Ad spend increased 25% year-on-year.
- Full-price sales are close to 90%.
- Facing 5-6% cost inflation, with price increases taken to protect margins.
Said on the call
“We have also reimagined this entire product funnel, which has now started flowing into the stores, and we should see more and more impact from it, backed by marketing campaigns.”
From the Q&A
| Topic | What management said |
|---|---|
| Cost Inflation & Pricing | Management faced 5-6% cost push on raw materials and has taken price increases to protect margins; full impact will be visible from the current quarter. |
| Channel Mix Impact on Gross Margin | Faster-growing franchise and e-commerce channels diluted gross margin by ~100 bps; without this mix, gross margin improvement would have been 230 bps. |
| Growth Initiatives and Future Levers | Key growth levers include store expansion, product funnel reimagination (with new collections expected by H2 FY27), digital growth, and franchise expansion, backed by elevated marketing spends. |
| Franchise Economics | Franchise partners see high single-digit like-for-like growth and typically achieve 18-24% ROI. |
| Supply Chain Consolidation | Vendor consolidation and kit rationalization, targeting ~30 core/satellite partners from over 100, is expected to yield ~200 bps margin improvement over a multi-year journey. |
| Revenue Growth Outlook | Management is 'reasonably optimistic' but does not give formal guidance, citing need to watch inflation impact; expects marketing investments to translate to growth 'as early as possible'. |
Guidance
- We don't give forward-looking guidance.
- A&P expense as a percentage of sales can be modeled at between 3% to 3.5%.
Source
Summary written from the transcript filed by Bata India Limited for the call held on 13 Aug 2026; published 18 Aug 2026, 18:59 IST.
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