Bata India Ltd, the country’s leading footwear major, has announced a robust 12.61% year-on-year (YoY) increase in consolidated net profit for the third quarter ended December 31, 2025 (Q3 FY26). The company reported a net profit of ₹66.1 crore, up from ₹58.7 crore in the corresponding period last year, signaling a strong recovery in consumer demand and successful operational efficiency.
Despite a challenging retail environment earlier in the year, Bata’s revenue from operations grew by 2.81%, reaching ₹944.68 crore. The total income for the quarter, including other income, rose to ₹965.72 crore. This growth was largely driven by the company’s focus on its premium portfolio, including brands like Hush Puppies and Power, which continue to see higher traction among urban consumers.
“The improvement in demand, post the rollout of GST 2.0, continued during the quarter,” said Gunjan Shah, Managing Director and CEO of Bata India. “All channels delivered growth with solid gross margin management, demonstrating disciplined execution of our strategic levers.”
Bata India’s EBITDA (operating profit) grew by 6.6% to ₹212 crore, with the EBITDA margin expanding to 22.4% (up 70 basis points YoY). The company attributed this to:
- Inventory Management: A 11% reduction in gross inventory through better quantity and quality controls.
- Zero Base Merchandising (ZBM): Scaled to over 400 stores, enhancing revenue per square foot and improving the consumer experience.
- Retail Expansion: The addition of 27 new franchise stores during the quarter, bringing the total franchise network closer to its goal of 800 stores by 2026.
The quarterly results were achieved despite a one-time exceptional expenditure of ₹6.66 crore related to the implementation of the New Labour Codes. This reflects the company’s proactive approach to regulatory compliance while maintaining profitability.
With a revamped e-commerce presence and a push into quick-commerce via partnerships with Zepto and Swiggy Instamart, Bata India is successfully positioning itself as an omnichannel powerhouse. The company aims to cross the 2,000-store mark by FY26, focusing heavily on Tier-2 and Tier-3 markets through an asset-light franchise model.
Key Highlights:
- Profitability: Consolidated net profit rose 12.6% to ₹66.1 crore, supported by a 6.6% jump in EBITDA.
- Revenue: Operating revenue reached ₹944.7 crore, marking a steady 2.8% YoY growth.
- Strategic Levers: Success driven by the ZBM project (400+ stores) and double-digit growth in premium brands like Hush Puppies.
- Expansion: Added 27 franchise stores this quarter; targeting a 2,000-store network by the end of 2026.