Bata India Ltd — earnings calls

Bata India reported Q1 FY27 revenue of Rs 979 crore, a 4% growth split evenly between volume and value, with underlying PBT growth of about 22%. The company crossed 2,000 EBO stores, expanded its ZBM program to about 775 revenue-contributing COCO stores, and increased ad spend by 25% year-on-year. Management attributed gross margin movement of 130 basis points partly to channel mix dilution, and discussed raw material cost inflation of 5% to 6% that has been offset through price increases.

Bata India reported a second consecutive quarter of over 5% value growth, which management said was volume-led and broad-based across channels and categories. Reported PBT declined due to exceptional items including a manufacturing facility closure, an FX impact on a licensing agreement liability, and lower gains from lease closures, but management stated like-to-like PBT growth was about 11% with cash flow from operations up about 18%. Management also discussed inventory reduction, expansion of zero-based merchandising and franchise stores, and growth in the e-commerce channel.