Bata India Gets Motilal Oswal 'Neutral' Stance Post Q4 Results, Says Steady Volume Growth Recovery Is Vital

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Motilal Oswal Report

Over the last couple of years, following the change in management, a renewed focus on growth has been evident, characterized by a brand refresh, the introduction of new product lines (such as Sneakers), and enhancements in the backend supply chain infrastructure.

Despite muted demand, Bata India Ltd. is seeing early traction in value segment (sub Rs 1,000). Strategic inventory cleanup, curated product refreshes, and franchiseled expansion are positioning the company for improved efficiency and gradual margin recovery, though near-term pressures persist.

Our FY26-27 estimates are broadly unchanged. We expect FY25-27 CAGR of 8%/12%/22% in revenue/Ebitda/Adjustd PAT CAGR (albeit on a low base in FY25, - 23% vs FY23 levels).

We maintain a Neutral rating with a target price of Rs 1,200.

Sustained volume recovery remains the key trigger for the stock.

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