Bata India shares were in demand on Wednesday, rising as much as 8.42% to Rs 758.45 apiece on the BSE after the footwear retailer reported a 23% year-on-year (YoY) increase in consolidated net profit for the June quarter (Q1FY27) and announced an interim dividend of Rs 25 per share.
At 9:20 am, Bata India shares were trading 5.85% higher at Rs 740.45, while the BSE Sensex was down 0.32% at 77,907.
Bata India reported a consolidated net profit of Rs 64 crore in Q1FY27, compared with Rs 52 crore in the year-ago quarter. Revenue from operations rose 3.9% YoY to Rs 979 crore, from Rs 942 crore a year earlier.
On the operating front, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 2.6% to Rs 204 crore from Rs 199 crore in Q1FY26. However, the EBITDA margin moderated to 20.8% from 21.1%.
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The company said growth during the quarter was supported by premiumisation and volume growth, while all channels contributed positively, with e-commerce recording significant growth.
Bata India also reported a 130-basis-point improvement in gross margin, helped by higher full-price sales and lower markdowns. Gross inventory was down more than 10% from June 30, 2025, indicating continued improvement in inventory quality and quantity.
The company has announced an interim dividend of Rs 25 per equity share. The record date for determining eligible shareholders is Wednesday, while the dividend payout will begin from September 2, 2026.
“Continuing on the growth momentum for the third consecutive quarter, we are pleased to report a topline growth of 4% in Q1FY27, led by a blend of premiumisation and volume growth,” Gunjan Shah, Managing Director and CEO of Bata India, said.
Shah added that the company increased advertising investments by nearly 25% during the quarter and successfully managed higher freight costs, shipping challenges and longer transit times amid global geopolitical uncertainties.
Bata India also scaled its Zero Base Merchandising Project to 775 stores, which the company said delivered improvements in consumer experience and revenue per square foot.
Looking ahead, the company said it remains focused on premiumisation, volume expansion, consumer engagement and operational efficiency. With monsoon-related business shifting into the September quarter, management remains optimistic about sustaining the growth momentum.
Bata India is one of India's largest footwear retailers and manufacturers, with nearly 2,000 company-owned and franchise stores, alongside a presence across multi-brand outlets and online channels. The company sells close to 50 million pairs annually and operates brands including Bata Red Label, Bata Comfit, Power, NorthStar, Floatz, Bubblegummers and Hush Puppies.
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