Bata India Limited announced that its Board of Directors approved the introduction of a Voluntary Retirement Scheme (VRS) for eligible workers at its Bata Shatak manufacturing unit in Hosur, Tamil Nadu, on January 8. The company stated that the scheme is expected to be mutually beneficial for both employees and the organization.

VRS Implementation and Assessment

The voluntary retirement scheme will be offered to all eligible workers at the Hosur facility. However, Bata India has not disclosed specific details regarding the implementation timeline or the number of employees expected to participate in the scheme.

The company indicated that an assessment of the VRS implementation and its financial impact will be conducted over time and disclosed subsequently in accordance with its "policy for determination of materiality of events and information." The number of employees opting for the scheme will also be shared at a later date.

Recent Financial Performance

Bata India's latest quarterly results reflect challenging market conditions. The company reported a significant decline in financial performance during the second quarter.

The substantial 73.26% year-on-year decline in consolidated net profit to ₹13.90 crore was attributed to lower revenue and rising expenses amid the company's transition to the new GST 2.0 regime. Consolidated revenue from operations fell 4.30% to ₹801.33 crore for the quarter ended September 30.

Market Performance and Regulatory Compliance

Shares of Bata India closed at ₹925.30 apiece, representing a 1.14% decline from the day's opening on the NSE. The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, formally communicating the VRS announcement to major stock exchanges.

Bata India Limited has received a GST demand order from the Commercial Tax Officer, Chandigarh, imposing a penalty of ₹23.95 lakh for alleged violations during Financial Year 2021-22. The company disclosed this development to stock exchanges on December 30, 2025, in compliance with SEBI listing regulations.

GST Demand Order Details

The Commercial Tax Officer, Chandigarh, issued the demand order in FORM GST DRC-07 under the CGST Act, 2017, along with an assessment order. The order was passed on December 30, 2025, addressing alleged contraventions related to the company's tax compliance.

Nature of Alleged Violations

The tax authority has alleged that Bata India's Input Tax Credit (ITC) claims were not in accordance with applicable laws and lacked supporting documentary evidence. These allegations form the basis for the penalty imposition in addition to the tax demand and interest components.

Company's Response and Financial Impact

Bata India has expressed confidence in its position regarding the GST matter. The company stated that it believes it has a good case to defend the matters before the appropriate authorities without any material financial impact. This suggests the company intends to challenge the order through available legal remedies.

Regulatory Compliance

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and communicated to BSE Limited, National Stock Exchange of India Limited, and The Calcutta Stock Exchange Limited. The information has also been uploaded on the company's website at www.bata.in for stakeholder access.