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Footwear major Bata India on Wednesday reported a sharp 95.2% year-on-year decline in consolidated net profit for the fourth quarter of FY26 at ₹2.2 crore, compared with ₹45.9 crore in the same period last year, according to a regulatory filing.
The decline in profitability was primarily impacted by one-time expenses during the quarter. Bata India incurred VRS-related costs of ₹28.1 crore as part of its long-term strategy aimed at enhancing supply chain capability, agility and operational efficiency. The company also reported a non-cash foreign exchange loss of ₹22.4 crore linked to the restatement of royalty-related financial liabilities amid sharp currency devaluation triggered by geopolitical developments.
Despite the earnings pressure, Bata India posted a 5% year-on-year increase in revenue from operations to ₹828 crore in Q4 FY26, up from ₹788 crore in the corresponding quarter of the previous fiscal. The company said this marked its second straight quarter of accelerating revenue growth, aided by sequential improvement in business momentum, with March witnessing stronger traction than January.
Cash generation from operations rose 18.2% YoY to ₹132.2 crore during the quarter. Bata India said its zero-based merchandising initiative has now been rolled out across nearly 550 stores, accounting for over 70% of store sales. Gross inventory levels also declined 13%, reflecting improved inventory management and tighter operational controls.
The company’s e-commerce business continued to perform strongly with growth in the mid-twenties, while premium brands such as Hush Puppies and Power outpaced the overall business growth.
Bata India’s board has recommended a dividend of ₹9 per equity share of face value ₹5 each for FY26, subject to shareholders’ approval at the upcoming annual general meeting scheduled for August 12, 2026. The total dividend payout for the fiscal stands at ₹115.68 crore. The company has fixed July 31, 2026, as the record date for determining shareholders eligible for the dividend payout.
"Dividend on equity shares, if declared, at the AGM will be paid on Thursday, August 27, 2026 onwards to those Members who are entitled thereto," it said.
Commenting on the performance, Gunjan Shah, Managing Director and CEO of Bata India, said: “As India’s most trusted shoes brand, we are pleased to report volume-led growth of 5% over Q4 FY25, supported by broad-based performance across channels. This is the second consecutive quarter of accelerating topline growth, further strengthened by sequential improvement during the quarter.”
Shah further stated that Bata’s continued focus on operational efficiency and disciplined cost management has helped it to generate strong operating cash flows. It has also continued to invest in demand generation, consumer engagement, and brand relevance, with advertising spends increasing by 1.5 times.
“Our focus on network penetration, premiumisation, disciplined resource allocation and strong execution remained central to driving performance. During the quarter, we continued to scale key strategic initiatives,” Shah added.
As of May 27, 2026, Bata India’s market capitalisation stood at ₹8,882.54 crore, according to NSE data.
