Bata India’s Q2 profit drops 71.68% as costs outpace revenue
Consolidated operating margin fell 4.15 percentage points QoQ, while other income supplied 73.08% of pre-tax profit.
Filed 03 Nov 2026, 21:37 IST · after market close · Bata India Ltd (BATAINDIA)
Key takeaways
- Consolidated operating margin fell 4.15 percentage points QoQ to 16.69% as revenue declined 11.97% while expenses fell only 7.36%.
- Net profit dropped 71.68% QoQ to Rs 18.12 cr, with other income contributing 73.08% of profit before tax.
- Bata India’s 16.69% operating margin was 4.47 percentage points above the Consumer Discretionary median across 187 reported peers.
Price around the results
Revenue decline put pressure on operating margin
Bata India’s consolidated revenue fell 11.97% QoQ to Rs 861.78 cr, while expenses declined by only 7.36% to Rs 717.93 cr. Costs therefore fell more slowly than revenue, narrowing operating margin by 4.15 percentage points to 16.69%. Operating profit declined 29.47% to Rs 143.85 cr.
Profit quality weakened despite stable interest cost
Interest expense was broadly unchanged, declining 0.89% QoQ, while depreciation increased 1.35% to Rs 104.79 cr. Profit before tax fell 71.24% to Rs 24.70 cr, and the tax rate rose 1.12 percentage points to 26.63%. Other income of Rs 18.05 cr accounted for 73.08% of pre-tax profit, making reported earnings heavily dependent on non-operating income this quarter.
Margin remained above the sector median
Bata India’s 16.69% operating margin was 4.47 percentage points above the 12.22% median for the 187 Consumer Discretionary peers that had reported the same quarter. Sequentially, however, margin declined from 20.84%, alongside the 11.97% fall in revenue. The company filed its consolidated results after market close on 3 November 2026.
Management highlighted wider distribution and store reach
Management said Bata had expanded its distribution presence to more than 17,000 MBOs and had 2,043 DOS and franchise stores plus 850 ZBM stores across India. It also said Myntra’s MNow service was live through more than 300 Bata stores. Management said it aims to take KRO count above 5,000 by Q3 2027, while its presentation described design and innovation as shaping the 2027 launch.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹862 cr | ₹979 cr | -11.97% |
| Other income | ₹18 cr | ₹18 cr | +0.11% |
| Expenses | ₹718 cr | ₹775 cr | -7.36% |
| Operating profit | ₹144 cr | ₹204 cr | -29.47% |
| Operating margin (%) | 16.69% | 20.84% | — |
| Interest | ₹32 cr | ₹33 cr | -0.89% |
| Depreciation | ₹105 cr | ₹103 cr | +1.35% |
| Profit before tax | ₹25 cr | ₹86 cr | -71.24% |
| Tax | ₹7 cr | ₹22 cr | -69.97% |
| Net profit | ₹18 cr | ₹64 cr | -71.68% |
| EPS (₹) | ₹1.41 | ₹4.98 | -71.69% |
Operating margin of 16.69% compares with a Consumer Discretionary sector median of 12.22% across 187 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Bata aims to increase its KRO count to more than 5,000 by Q3 2027.
Expansion
- The company has expanded its distribution presence to more than 17,000 MBOs.
- The company had 2,043 DOS and franchise stores and 850 ZBM stores across India.
New initiatives
- Myntra’s MNow service is live through more than 300 Bata stores.
- Bata’s technology showcase focuses on design and innovation shaping its 2027 launch.
What to watch
- Whether operating margin holds above 16.69% after the 4.15 percentage-point QoQ decline.
- Whether revenue recovers from Rs 861.78 cr while expenses remain below the pace of revenue growth.
- KRO expansion against management’s stated aim of more than 5,000 by Q3 2027.