Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Bata India Limited has informed about transcript of Post Earnings Call
BATAINDIA · price
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Awaiting price reaction for this filing.
Bata India reported a subdued Q1 FY26 with flat revenue of Rs. 942 crore (-0.3% YoY), gross margin declining 133 bps, EBITDA margin at ~22.9%, and PAT margin at ~5.5% (down 112 bps pre-exceptional). Management updated progress on three key initiatives: Zero Base Merchandising (ZBM) now in ~200 stores with +50 added this quarter, targeting 65-70 stores per quarter ahead; value proposition pricing (Rs. 399-499 range lifting checkout rates from 3.5% to 8% across 800 stores); and inventory agility (inventory down 16% YoY, stock turns at 2.1 with a 12-month target of 2.5+). Premium portfolio momentum continues with Floatz growing 30%+ and hitting ~Rs. 200 crore annualised run rate, while Hush Puppies has reached ~150 EBOs. Franchise network stands at 644 stores, contributing ~12% of turnover (vs under 3% pre-COVID), with 60% of new additions from existing partners. Long-term guidance of 130-150 store additions annually at an 80:20 franchise-to-COCO mix was reiterated.
Flat top-line and ~133 bps gross margin compression reflect continued demand weakness in mass-market footwear and competitive pressure from D2C brands. However, management is signalling margin recovery through aged-inventory clearance benefits, structural cost savings of 45-50 bps, and unprofitable store closures. Investors should monitor same-store sales growth pickup, ZBM rollout pace, and any festive season demand revival as key re-rating catalysts.