BATAINDIA
Large CapBata India Limited
Consumer
Bata India Limited is a leading footwear retailer in India, operating ~2000 stores nationwide, alongside a vast MBO network across 1,660 towns. The company is expanding its digital and distribution channels, focusing on premium products and customer-driven, profitable growth.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -95% YoY · margin compression · Rev +5% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹827.6 Cr | +5.0% | -12.4% |
| EBITDA | ₹150.8 Cr | -15.2% | -28.9% |
| Operating margin | 18.2% | -435 bps | -424 bps |
| PAT | ₹2.2 Cr | -95.2% | -96.7% |
| PAT margin | 0.3% | -556 bps | -673 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 saw modest 5.1% YoY revenue growth and 2.8% volume growth, with cash from operations up 18.3%. However, gross margin declined by 242 bps and PBT by 103 bps, impacted by higher ad spends and VRS costs.
The thesis is under stress due to significant margin and PBT contraction despite revenue growth and strong operational improvements in inventory and digital channels. While distribution expansion and premiumization are positive, the profitability erosion needs close monitoring.
Digital & E-commerce
E.Com grew by mid-twenties and Bata.com surged 81% vs LY, with 700+ stores fulfilling online orders.
Distribution & Reach
Scaled to 1,660 towns via 15,000+ MBOs, with I&D channel growing in double digits.
Premium Portfolio
Premium portfolio brands like HP and Power are outpacing overall growth, showing traction in volume and ASP.
Franchise and SIS Channels
Franchise and SIS channels are delivering high double-digit growth and strengthening overall profitability.
Retail Presence
Expanded retail presence nationwide to ~2000 stores.
Franchise Doors
Expanded to +700 Franchise doors.
SIS Doors
SIS expanded to ~350 doors.
ZBM Doors
Zero Base Merchandising (ZBM) expanded from 550 doors in Mar'26 to 700+ doors in May'26.
Brand Investment
Amplified brand investment 1.5x vs LY, leading to brand consideration rising to 66.
Inventory Management
Inventory reduced by 28%, availability improved +950 bps, and full price sales are up with controlled markdowns.
Digital Adoption
700+ stores now fulfilling online orders, with the Bata Mobile App achieving 240k+ downloads.
Gross Margin Contraction
Gross Margin declined by 242 bps YoY in Q4 FY26.
PBT Decline
PBT decreased by 103 bps in Q4 FY26.
Exceptional Costs
Q4 FY26 included a VRS impact cost of INR 281 Mio as an exceptional item.
General Economic Conditions
The future involves risks and uncertainties that could cause actual results to differ materially, such as general economic conditions.
Raw Material Prices
Potential risks and uncertainties include various internal and external factors such as raw material prices.
Regulatory Developments
Potential risks and uncertainties include various internal and external factors such as regulatory developments.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Consumer businesses like footwear often exhibit seasonality, making year-over-year comparisons more indicative of underlying performance trends and growth drivers.
Volume Growth
Volume growth of +2.8% in Q4 FY26.
Gross Margin
Gross Margin declined by 242 bps YoY in Q4 FY26.
Premiumization
Premium portfolio (HP and Power) outpacing overall growth, seeing traction in Volume & ASP growth.
Distribution Expansion
Scaled to 1,660 towns via 15,000+ MBOs; I&D channel grew in double digits.
Strategic Commitment
Management is strategically committed to customer-driven, profitable growth.
Product Funnel Reimagined
Actions for Q2-Q3 FY27 include investing in new standardized kits, standardized interiors, and improving kits-to-colour ratio, aiming for ~30% less kits, ~25% less styles, and ~20% less lines.
Inventory Agility
Inventory efficiencies in terms of quantity and quality continued to show strong progress, with improved demand planning.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Gross Margin | -242 bps YoY | Stabilization or improvement in gross margin trends. |
| Volume Growth | +2.8% YoY | Acceleration in volume growth, particularly from premium segments. |
| Digital Sales Contribution | E.Com ~10% of BIL turnover | Continued expansion and increasing contribution of digital channels to overall sales. |
| Inventory Turns | Improved ~22% YoY | Sustained improvement in inventory turns and availability metrics. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -18.9% / mo · near 52W low
Technical chart
BATAINDIAdaily · 1Y-36.2%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 40. Wait for confirmation.
- SMA20 falling (~7.6% over last month) — short-term momentum negative.
- RSI(14) at 40 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 37% off 52W high · 10% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.9%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 18.1%.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 8/30; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 49th percentile of the scored universe and 48th percentile within Consumer. Main check: results consistency is weak at 35/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 48th pctile, median 67 · Large: 28th pctile, median 74
79 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4%.
- ▸12 years of positive FCF.
- ▸OPM spread across recent quarters is 4.5%.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -3.1%.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 51.80
- P/B
- 5.39
- EV/EBITDA
- 8.84
- Market Cap
- 8581.00Cr
Profitability
- ROE
- 10.50%
- ROCE
- 12.20%
- ROA
- 3.55%
- Dividend Y
- 1.35%
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- 32.00%
- Revenue 3Y
- 1.00%
- EPS 3Y
- -20.00%
Balance Sheet
- Debt/Equity
- 0.87
- Interest Coverage
- 5.24×
- Altman Z
- 4.63
- Book Value
- 124.00
Cash Flow
- FCF Yield
- 3.94%
- FCF Positive Y
- 12/5
- OCF
- 595.00 Cr
- EPS TTM
- 10.44
Shareholding
- Promoter Hold
- 50.16%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 9%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.