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Earnings Call Transcript

Bata India Earnings Call Transcript: Key Takeaways

Bata India reported Q1FY27 revenue of ₹979 crores, up 4% YoY, with underlying PBT growing 22%. Strategy focuses on premiumization, EBO expansion to 3,000 stores, and product funnel reimagination.

Highlights
Revenue growth4% YoY for Q1FY27.
MarginsGross margin expansion from lower markdowns and full-price sales at 90%.
Demand visibilityDeferral of revenue seen in Q1 due to monsoon delay; recovery in July.
Management confidenceReasonably optimistic about future initiatives and demand recovery.

Growth

Revenue grew 4% driven by equal volume and price growth; underlying PBT up 22%.

Outlook

Targeting 3,000 EBO stores. Expected gross margin expansion of ~200 bps from supply chain efficiencies.

Risks

Elevated raw material costs for synthetics (crude oil derivatives) and delay in monsoon impact.

Last quarter's promises, checked

Delivered

  • Targeted 5% plus value growth → delivered 4% revenue growth (= PARTIAL)
  • Expand ZBM to 75-80% of network → delivered 700 stores (approx. 60% of COCO) (= PARTIAL)
  • Inventory reduction target → delivered 28% reduction over 2 years (= BEAT)

Partly delivered

  • Franchise expansion target 1,000 stores → delivered 700+ stores (= PARTIAL)

Missed

  • Targeted inventory turns of 3.0 → delivered 2.5+ (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: BATAINDIA. Summary written with AI assistance from the document.

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Bata India Ltd: key numbers

Share price
₹629.80
Market cap
₹8,095 Cr
Revenue (annual)
₹3,516 Cr
Net profit (annual)
₹134.2 Cr
P/E (TTM)
55.4×Sector 67.6×
Promoter holding
50.16%+0.00% QoQ
FII holding
6.38%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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