Bata India Limited has announced a leadership transition, appointing Sanjay S. Rao as its next Managing Director and CEO effective October 1, 2026. The decision aims to steer the footwear major into its next phase of accelerated growth, leveraging Rao's extensive retail experience to strengthen consumer relevance and market presence.

The Board of Directors approved the appointment based on the recommendation of the Nomination and Remuneration Committee. Rao will initially join the company as a Whole-time Director and CEO on August 24, 2026, serving in this capacity until September 30, 2026. Subsequently, he will assume the role of Managing Director and CEO for a five-year term ending August 23, 2031, subject to necessary regulatory and shareholder approvals.

Sanjay S. Rao succeeds Gunjan Shah, who will complete his five-year term as Managing Director and CEO on September 30, 2026. The Board placed on record its appreciation for Shah's leadership and contribution to the company during his tenure.

Rao brings over two decades of retail and consumer leadership experience across India, South Asia, China, and Europe. He joins Bata India from Nike, where he served as Senior Director, Nike Retail, overseeing the France and Benelux markets. Previously, he played a pivotal role in establishing Zara's business in India through a joint venture with the Tata Group and has held senior positions at Inditex and Guess.

Panos Mytaros, Chief Executive Officer of Bata Group, highlighted India as a critical market for the group's long-term growth. He expressed confidence that Rao's international perspective and understanding of the Indian market make him the right leader to drive future momentum. Ashwani Windlass, Chairman of Bata India, also welcomed Rao, citing his versatile background and proven track record as key assets for the company.

The company affirmed that the appointment complies with SEBI regulations regarding the eligibility of directors. Further details regarding the transition will be disclosed in accordance with applicable regulatory requirements.

Bata India reported a 5.1% year-on-year increase in revenue from operations to ₹8,276 Mn for the fourth quarter of FY26, driven by volume-led growth and strategic expansion in digital channels. The company’s cash from operations grew by 18.3% YoY to ₹1,322 Mn, reflecting improved operational efficiencies. The financial performance was detailed in the investors presentation submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company achieved a volume growth of 2.8% during the quarter, with the Zero Base Merchandising (ZBM) initiative contributing over 70% to retail growth. ZBM doors expanded to 700+ by May 26, recording a turnover increase of 4.6% and volume growth of 6.1%. Bata India significantly amplified its brand investments, with media spends rising 1.5X compared to the previous year, which helped drive brand consideration to 66.

Financial Performance

The gross margin declined by 242 basis points, while the Profit Before Tax (PBT) margin stood at 6.5%, a decrease of 103 basis points YoY before exceptional items and forex loss. The company incurred an exceptional cost of INR 281 Mio in Q4 FY26 related to VRS impact. Management clarified that excluding exceptional items—VRS, FX impact on licensing agreements, lower gains on lease closures, and prior year reversal—the like-to-like PBT growth was approximately 11%.

Operational Highlights

Inventory management improved significantly, with total inventory reducing by 28% to ₹6,601 Mn from ₹9,150 Mn in Q4 FY24. Stock turns improved to 2.43 from 1.88 in the same period. The company reduced clutter at stores to 0.7X relative to Q4 FY24, while overall availability improved by 950 basis points. Trade receivables surged 65% YoY, attributed to the expansion of MBO channels and e-commerce, with no deterioration in credit quality.

Strategic Expansion

Bata India scaled its presence to 1,660 towns via 15,000+ Multi-Brand Outlets (MBOs), with the Institutional & Distribution (I&D) channel growing in double digits. The digital channel continued its expansion, with e-commerce growing by 26% and Bata.com surging 81% against the previous year. Over 700 stores are now fulfilling online orders, contributing to approximately 10% of the company’s turnover. The company aims to expand its franchise network to nearly 1,000 stores in the next 12 months.