Bata India Shares Plummet 4% Following 95% Decline in Q4 Net Profit

Bata India Shares Decline 4.39% as Company Reports Sharply Lower Q4 Earnings

Shares of Bata India, a leading footwear maker, plummeted over 4% in early trade on May 29 after the company reported a significant decline in its fourth-quarter earnings. As per the National Stock Exchange (NSE), Bata India shares were trading 4.39% lower at Rs 662.20 in Friday trade.

The company reported a substantial 95.2% year-on-year (YoY) drop in consolidated net profit to Rs 2.2 crore for the fourth quarter of FY26, compared with Rs 45.9 crore in the corresponding period last year. The decline in net profit was attributed to certain one-time items, including voluntary separation retirement (VSR) costs of Rs 28.1 crore as part of its long-term strategy to improve supply chain capability and efficiency. Additionally, the company booked a non-cash forex loss of Rs 22.4 crore related to the restatement of financial liability towards royalty payments amid sharp currency depreciation linked to ongoing geopolitical tensions.

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Revenue from operations, however, came in at Rs 828 crore during the March quarter, marking a 5% YoY growth from Rs 788 crore reported in Q4 FY25. The company stated that the March quarter marked its second consecutive period of accelerating topline growth, with business momentum improving sequentially through the quarter and March performing better than January.

Cash generation from operations rose 18.2% YoY to Rs 132.2 crore during the quarter. The company's zero-based merchandising initiative has now been extended to nearly 550 stores, contributing to over 70% of store sales. Gross inventory declined 13%, reflecting tighter inventory control and improved operational discipline. Its e-commerce business posted growth in the mid-twenties, while premium brands such as Hush Puppies and Power continued to outperform the overall portfolio.

Bata India's board recommended a final dividend of Rs 9 per equity share of face value Rs 5 each for FY26, subject to shareholder approval at the upcoming annual general meeting scheduled for August 12, 2026. The total dividend payout for FY26 stands at Rs 115.68 crore. The company fixed July 31, 2026, as the record date for determining shareholder eligibility. Dividend payments, if approved at the AGM, will be made from August 27, 2026 onwards.