Bata India Shares Tumble To 7-Year Low Amid Persistent Weakness, On Track For Biggest Annual Drop In 16 Years

Mumbai: Shares of Bata India extended losses on December 2, hitting Rs 961.00, marking a seven-year low and continuing a downtrend that began in August 2024. The stock has fallen in 13 out of the last 16 months, losing around 40 percent cumulatively. Since its record high of Rs 2,262 in November 2021, Bata has shed 58 percent of its value, and it is on track for its worst annual performance in 16 years, down 30 percent in 2025.

Weak Quarterly Performance Worsens Sentiment

Bata India reported a disappointing Q2FY26, with revenue falling 4 percent year-on-year to Rs 801 crore, its weakest in ten quarters and below analysts’ expectations. Growth was impacted by deferred purchases due to GST rate rationalisation and a temporary warehouse disruption in July 2025.

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Profitability also took a hit. Gross margins declined 122 basis points to 55.4 percent, while EBITDA dropped 17 percent to Rs 145 crore, with margins contracting 280 basis points to 18.1 percent. Consolidated net profit plunged 73.26 percent YoY to Rs 13.9 crore, impacted partly by a one-off voluntary retirement scheme expense at a factory.

Signs of Recovery Amid Challenges

Despite the weak quarter, Bata noted improving sales momentum after the GST 2.0 transition concluded on September 22, 2025. Premium brands such as Hush Puppies and Power are witnessing growth, and the company’s zero-base merchandising initiative has now been implemented across 200 stores to improve efficiency and customer experience.

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Investors are closely monitoring whether these initiatives, along with performance in lower-priced categories, can reverse the prolonged downtrend. Competition in the footwear market remains intense, making the path to sustainable growth challenging for Bata India.

Disclaimer: The Free Press Journal advises that this article is for informational purposes only. Readers should not consider it as investment advice and must consult financial experts before making investment decisions.