Bata India's quarterly profit drops on sluggish footwear sales, higher costs

Bata India

11/08/2025 15:06

Aug 11 (Reuters) - Footwear retailer Bata India BATA.NS reported a drop in first-quarter adjusted profit on Monday, hurt by higher costs and as sluggish consumption trends dragged on sales growth.

In the reported quarter, Bata India recorded 47.8 million rupees ($545,251) expenses towards a voluntary retirement scheme at one of its manufacturing unit, and in the year-ago quarter, it logged a gain of 1.34 billion rupees from the sale of a land parcel.

Expenses were nearly 1% higher from a year ago, while revenue slipped 0.3%. That led consolidated profit before exceptional items and tax to drop 10% to 748.5 million rupees in the quarter ended June 30.

For more earnings highlights, click here.

KEY CONTEXT

A consumption slowdown in India's urban centres have dragged margins for Bata, which sells items such as shoes, slippers, leather belts and bags.

The company has strived to maximise volume-led growth in recent quarters, reducing price points offered in stores to reduce decision-making fatigue, while adding more affordable footwear.

Bata said it is "optimistic about consumption recovery" for the rest of the year, after flagging weather-related "headwinds" in the first quarter, which likely hit footfalls in its brick-and-mortar stores.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Bata India
BATA.NS
48.77
19.01
8.59
30.95
Sell
10
0.95
1.61
Metro Brands
METB.NS
61.93
32.76
15.41
23.23
Buy
21
0.88
0.45
Relaxo Footwears
RLXO.NS
49.53
23.86
4.84
17.74
Hold
10
0.96
0.69
Campus Activewear
CAMU.NS
48.45
25.20
13.82
26.68
Buy
9
0.86
NULL

   * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL TO JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.6660 Indian rupees

Bata India Stock Performance https://tmsnrt.rs/4794iP1

 (Reporting by Ananta Agarwal and Hritam Mukherjee in Bengaluru; Editing by Harikrishnan Nair)

 ((Ananta.agarwal@thomsonreuters.com;))