Bata India Limited shares fell 4.8% in early trade following a sharp 73% decline in consolidated net profit to Rs 13.9 crore for Q2 FY26. The revenue dipped 4.3% as rising expenses and GST transition challenges impacted performance during the quarter ended September 30, 2025.
Bata India Ltd reported a significant drop in its Q2 consolidated net profit to Rs 13.9 crore, down 73.26% from Rs 51.98 crore in the same quarter last year. The earnings decline was driven by lower revenue at Rs 801.33 crore, a 4.3% decrease year-on-year, and increased expenses totaling Rs 795.2 crore.
The company attributed some of the financial pressures to GST transition issues impacting sales early in the quarter, although there were signs of recovery during the festive season post-September 22. Bata is also facing temporary business impacts due to a warehouse disruption and costs related to a voluntary retirement scheme.
Despite challenges, the company continues to prioritize casual and athleisure segments to attract younger consumers amid a broader retail slowdown, with expectations of improved performance in the latter half of the year owing to GST rate cuts and consumption uptick.
Important Points
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Consolidated Q2 net profit fell 73% to Rs 13.9 crore from Rs 52 crore last year.
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Revenue decreased 4.3% to Rs 801 crore year-on-year.
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Total expenses rose to Rs 795 crore in Q2 FY26.
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GST transition issues and warehouse disruption impacted sales and operations.
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Focus on casual and athleisure lines to tap younger consumers amid retail slowdown.
Source: Economic Times, Bata India Ltd regulatory filings, Financial Express