Bata India Limited — Investor Meet, 06-11-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Bata India's Q2 FY26 revenue was INR 800 Cr, down 4% YoY, impacted by ~400 bps from GST rate changes and a distribution center disruption. Gross margin fell 150 bps YoY but improved 190 bps QoQ, affected by pre-GST incentives and accelerated inventory clearance. EBITDA declined 220 bps, partly due to marketing investments doubling to 3.5% of revenue.

Management noted strong progress in inventory decluttering, boosting product freshness. Zero-based merchandising now covers 90% of stores in Gurgaon and Mumbai. The franchise network is nearing 700 stores, with plans for aggressive expansion. New product strategies, exemplified by Victoria Ballerina and Easy Slide successes, are key. Management anticipates improved gross margins in future quarters due to reduced deep markdowns, expressing confidence in strategic initiatives for sustained growth.