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The Print Times
Bata India Limited reported a turnover of INR 979 crore in the first quarter of FY27, registering approximately 4% growth, supported by a balanced contribution from volume and value growth. The company also recorded around 22% growth in underlying profit before tax (PBT), reflecting progress across its business operations, inventory management and retail channels.
For close to a century, Bata India has been a symbol of trust and quality for Indian consumers, serving over 250,000 customers every day. Throughout this journey, Bata has continuously evolved to cater to the diverse needs and preferences of its customers to become the largest footwear retailer and manufacturer in the country. Its expansive retail network consists of nearly 2000 stores (Company Owned and Franchise), supported by thousands of Multi Brand Outlets and a robust omni-channel presence across D2C and marketplaces.
Speaking during the company’s Q1FY27 earnings conference call, Gunjan Shah, Managing Director and Chief Executive Officer of Bata India Limited, highlighted the company’s continued focus on operational efficiency, premiumisation, retail expansion and margin protection amid elevated input costs.
Bata India crossed the milestone of 2,000 exclusive brand outlets (EBOs), becoming the first brand in the country to reach this scale, according to Shah. The company aims to expand its exclusive retail footprint further, with a long-term aspiration to reach 3,000 stores. Its Zero Base Merchandising (ZBM) initiative has also expanded to approximately 775 stores, with the company reporting encouraging results in consumer experience and revenue per square foot. Its franchise network grew to 750 outlets.
Growth remained broad-based across sales channels, with e-commerce and multi-brand distribution outlets also contributing positively. The company increased its advertising expenditure by approximately 25% during the quarter to support its brands and product initiatives. Shah also highlighted an improvement in customer feedback, with the company’s stores recording an average Google My Business rating of approximately 4.9 during the quarter.
Inventory management continued to improve in both quantity and quality. Gross inventory was down by more than 10% compared with June 30, 2025, while stock turns exceeded 2.5 times and approached 2.7 times, according to the management. Despite lower inventory levels, product availability remained at its highest levels. Full-price sales were close to 90%, continuing an upward trend over the previous four to five quarters and supporting improved margins through lower markdowns.
Bata India delivered a gross margin improvement of 130 basis points during the quarter. The company has also reworked its product funnel, with the refreshed product offerings gradually reaching stores. Management expects these products, supported by marketing campaigns, to contribute increasingly to business performance.
On input costs, Shah said elevated raw material prices, particularly for imported synthetic materials derived from crude oil, had created cost pressures. The overall cost increase was estimated at approximately 5% to 6%, prompting the company to implement corresponding price increases across new and existing products. Management expects these adjustments to help offset higher costs and protect margins.
The impact of the increased input costs was not fully reflected in the reported quarter because the company was carrying inventory equivalent to more than 140–150 days. The cost pressure was expected to become more visible from the current quarter as higher-cost inventory entered the business. However, Shah expressed confidence that the pricing adjustments would largely neutralise the impact, limiting the risk of margin dilution in subsequent quarters.
Discussing consumer demand, Shah noted signs of recovery in lower-priced product categories, partly reflecting the company’s initiatives and the impact of GST rationalisation in earlier quarters. However, premium products continued to record stronger growth, contributing to an increase in average selling prices. The company intends to maintain its focus on premiumisation while responding to competitive intensity in the lower-price segment.
At the brand level, Hush Puppies and Floatz were among the strongest performers, with Floatz continuing to deliver healthy sequential and year-on-year growth. The Bata brand also recorded encouraging growth, led by the women’s footwear category. Shah attributed this performance partly to the campaign featuring Taapsee Pannu and the launch of the Everyday Essential range.
In the sneaker category, Power performed well, while NorthStar remained a drag on performance. Shah said the company was consciously rationalising existing NorthStar product lines to prepare for a stronger collection, which is expected to be introduced over the next couple of quarters.
Bata India’s Q1FY27 performance reflects its emphasis on retail expansion, more efficient inventory management, higher full-price sales and a stronger product mix. As input cost pressures become more visible in the coming quarters, the company’s ability to sustain consumer demand and offset inflation through pricing, premiumisation and operational improvements will remain important to protecting margins and supporting growth.
