Bata India Reports 95% Drop in Q4 Profit Due to Voluntary Retirement Scheme Costs and Foreign Exchange Losses

Bata India Reports 95.2% Drop in Consolidated Net Profit for Q4FY26

Bata India, a leading footwear maker, has reported a significant decline in its consolidated net profit for the March quarter (Q4FY26). The company's net profit dropped by 95.2% year-on-year to ₹2.2 crore, primarily due to a voluntary retirement scheme (VRS) charge and a forex-related accounting loss.

The VRS cost incurred by Bata was ₹28 crore, while the non-cash forex loss was ₹22.4 crore, resulting from the restatement of financial liability towards royalty amid currency fluctuation in the quarter. In January, the company had approved a VRS option for workers at its Bata Shatak Unit in Hosur, Tamil Nadu. This is not the first time the company has rolled out such schemes, as it has also shut some facilities in recent years.

Despite the decline in net profit, Bata posted a "volume-led" 4.9% revenue growth in the quarter to ₹827.6 crore. The company stated that this growth is the second consecutive period of accelerating topline growth, supported by sequential improvement in momentum, with March performance stronger than January. Additionally, Bata's gross inventory reduced by 13%, showcasing its commitment to inventory discipline.

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The company's premium portfolio, led by brands such as Hush Puppies and Power, outpaced overall growth. Bata has also emphasized its focus on growth, with plans to derive about 25% of its total revenue from digital platforms in the next three years.

The board of Bata India has recommended a dividend of ₹9 per share in the board meeting. Shares of the company closed over 1% lower at ₹691 on the National Stock Exchange, while the benchmark Nifty50 ended down a tad lower. The stock is down about 45% over the past year.