Mumbai, August 12: Footwear major Bata India shares have risen about 2% after the company released its strong financial results for Q1 of FY27. This included a 23% year-on-year (YoY) increase in consolidated net profit to ₹63.98 crore for the first quarter ended June 30, 2026 (Q1 FY27). This has come on the back of double-digit premiumization growth, volume recovery and efficient working capital management.
For Bata’s investors, this could be the beginning of acche din for the company, as the company’s shares have fallen almost 37% in the past one year, mostly because of weak mass market demand and stagnant growth even as competitors were gnawing at its market share.
The company has seen its revenues rise 4% YoY to ₹978.95 crore (up from ₹942 crore in Q1 FY26). The growth was driven by higher revenues from its premium and casual brands like Sneaker Studio, Hush Puppies, and Comfit. To address the challenge of elevated rental costs, the company is moving towards an asset light franchise model, with its Sneaker Studio brand concept being launched across 775 stores across Tier 2 to Tier 4 cities.
“Continuing on the growth momentum for third consecutive quarter, we are pleased to report a topline growth of 4% in Q1FY27, led by blend of premiumization and volume growth. The growth is supported by strong consumer engagement with our advertising investments up by nearly 25%. We successfully navigated the global geopolitical situation impacting freight costs, shipping and transit time.
Inventory metrics continued to improve both in terms of quantity and quality, with gross inventory lower by over 10% vs. June 30, 2025. Zero Base Merchandising Project was scaled to 775 stores delivering exciting results on consumer experience and revenue per sqft. We delivered a healthy gross margin gain of 130 bps, with highest full price sale and lower markdowns. Growth was broad-based, with all channels contributing positively, with significant growth in ecommerce.
As Bata India builds on its growth momentum, we remain focused on driving sustainable, profitable growth through a balanced strategy of premiumisation, volume expansion, stronger consumer engagement, operational excellence and disciplined capital allocation. With monsoon business shifting to the September quarter, we are optimistic of continuing the momentum,” Mr. Gunjan Shah, Managing Director and CEO, Bata India, said in a press release.
Along with the results, Bata India’s board has declared a dividend of ₹25 per equity share of ₹5 each for the current financial year ending March 31, 2027.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
