News Earnings Bata India Q3FY26 Results: Profit Grows 13.5% to ₹661 Crore Despite Revenue DeclineBata India Q3FY26 Results: Profit Grows 13.5% to ₹661 Crore Despite Revenue Decline
Bata India Limited reported Q3FY26 consolidated profit of ₹661.02 million, representing a 12.6% year-on-year increase from ₹586.99 million. Revenue from operations grew 2.8% to ₹9,446.81 million. However, nine-month profit declined 53.6% to ₹1,319.96 million due to exceptional land sale gains in the previous year. The company incurred exceptional expenses of ₹79.25 million during the quarter, including voluntary retirement scheme costs and labour code implementation charges.
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Bata India Limited reported its unaudited financial results for the quarter and nine months ended December 31, 2025, showing improved quarterly profitability despite facing headwinds in overall revenue performance. The footwear major demonstrated resilience with strong quarterly earnings growth while managing operational challenges.
Quarterly Financial Performance
The company delivered solid quarterly results with consolidated profit increasing substantially year-on-year. Revenue performance remained relatively stable despite market challenges.
| Metric | Q3FY26 | Q3FY25 | Q3FY24 | YoY Change (%) |
|---|---|---|---|---|
| Revenue from Operations | ₹9,446.81 million | ₹8,013.34 million | ₹9,187.94 million | +2.8% |
| Total Income | ₹9,657.23 million | ₹8,227.60 million | ₹9,291.90 million | +3.9% |
| Profit Before Tax | ₹888.72 million | ₹192.93 million | ₹773.05 million | +15.0% |
| Net Profit | ₹661.02 million | ₹138.95 million | ₹586.99 million | +12.6% |
| Earnings Per Share | ₹5.14 | ₹1.08 | ₹4.57 | +12.5% |
The company's quarterly revenue from operations of ₹9,446.81 million represented a 2.8% increase compared to ₹9,187.94 million in the corresponding quarter of the previous year. Total income reached ₹9,657.23 million, including other income of ₹210.42 million.
Nine-Month Cumulative Results
The nine-month performance reflected the impact of exceptional items from the previous year, particularly the significant land sale gain that boosted prior year comparisons.
| Parameter | 9M FY26 | 9M FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹26,878.69 million | ₹27,005.72 million | -0.5% |
| Total Income | ₹27,473.22 million | ₹27,452.60 million | +0.1% |
| Net Profit | ₹1,319.96 million | ₹2,847.41 million | -53.6% |
| Earnings Per Share | ₹10.27 | ₹22.15 | -53.6% |
For the nine months ended December 31, 2025, revenue from operations declined marginally by 0.5% to ₹26,878.69 million from ₹27,005.72 million in the previous year. The significant decline in nine-month profit was primarily attributed to the absence of exceptional gains that benefited the previous year.
Exceptional Items and Special Charges
The company incurred several exceptional expenses during the reporting period, impacting overall profitability. These items primarily related to organizational restructuring and regulatory compliance.
| Exceptional Item | Q3FY26 | 9M FY26 | Details |
|---|---|---|---|
| VRS Expenses | ₹12.59 million | ₹143.06 million | Voluntary retirement schemes |
| Labour Code Impact | ₹66.66 million | ₹66.66 million | Implementation of new labour codes |
| Total Exceptional Expenses | ₹79.25 million | ₹209.72 million | Current period charges |
During the quarter ended December 31, 2025, the company incurred ₹12.59 million in expenses related to voluntary retirement schemes at manufacturing units. Additionally, the implementation of new labour codes resulted in a one-time charge of ₹66.66 million due to increased gratuity and leave liabilities.
Operational Metrics and Business Segment
Bata India operates in a single business segment focusing on footwear and accessories. The company maintained its market position while managing cost pressures and operational challenges during the quarter.
The paid-up equity share capital remained stable at ₹642.64 million with a face value of ₹5 per share. Other equity stood at ₹15,106.01 million as of March 31, 2025, reflecting the company's strong balance sheet position.
Recent Developments
Subsequent to the quarter ended December 31, 2025, the company implemented an additional voluntary retirement scheme at one of its manufacturing units, incurring an expense of ₹280.60 million. This indicates ongoing organizational restructuring efforts to optimize operations.
The Government of India notified new labour codes on November 21, 2025, consolidating twenty-nine existing labour laws into a unified framework. The company assessed the financial implications and recorded the impact as an exceptional item, demonstrating proactive compliance management.
Historical Stock Returns for Bata
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +6.76% | +9.32% | +1.93% | -20.14% | -29.61% | -40.06% |
