Bata India shares jump 8% on posting Q3 results; PAT up 13% YoY

Bata India's share price jumped 8.3 per cent, registering an intra-day high at ₹958 on BSE. At 9:56 AM, Bata India shares were trading 5.01 per cent higher at ₹928.65 per share. In comparison, the BSE Sensex was up 0.26 per cent at 84,286.68. 

 

The buying on the counter came after the company released its Q3FY26 numbers on Monday, after market hours. 

 

In the December quarter, Bata India Ltd reported a 12.61 per cent rise in consolidated net profit to ₹66.1 crore, compared to ₹58.7 crore a year ago.

 

The company’s revenue from operations was up 2.81 per cent to ₹944.68 crore during the quarter under review compared to ₹918.79 crore year-on-year (Y-o-Y). Check detailed results here.

Management commentary highlights

• Premium brands (Hush Puppies and Power) continued to scale, while fresh sales contribution improved sequentially, indicating better merchandising execution.
• The Zero Base Merchandising (ZBM) program was expanded to over 400 stores, supporting higher revenue per sq. ft. and improved in-store experience.
• Inventory quality and freshness improved alongside an 11 per cent reduction in gross inventory, reflecting tighter control on buying and replenishment.
• The company added 27 franchise stores during the quarter, continuing its asset-light expansion strategy.

Brokerage view on Bata India:

JM Financial Institutional Equities said Bata India’s Q3FY26 revenue came in at ₹950 crore, broadly in line with its estimates, but was up only 3 per cent Y-o-Y. The brokerage noted that combined revenues for Q2FY26 and Q3FY26 have marginally declined, suggesting the goods and services tax (GST)-rate change impact seen in Q2 has not meaningfully aided Q3 revenues.

 

Earnings before interest, tax, depreciation and amortisation )(Ebitda) rose 6 per cent Y-o-Y to ₹210 crore, in line with estimates, while Ebitda margin expanded 70 basis points (bps) Y-o-Y to 22.4 per cent. The margin improvement was driven by a 140 bps reduction in other expenses, partly offset by a 50 bps rise in employee costs and a 20 bps decline in gross margin to 56 per cent.  ALSO READ | BSE shares jump 6%, hit all-time high after posting strong Q3 results 

Interest and depreciation costs rose 4 per cent and 15 per cent Y-o-Y, respectively, though both were lower than JM Financial’s expectations. 

 

JM Financial highlighted continued progress on inventory efficiency, with the zero-based merchandising project scaled to 400+ stores (adding 200+ during the quarter). Management indicated that demand improvement post the GST 2.0 rollout sustained through the quarter, with “green shoots” visible and growth across channels, supported by disciplined margin management.

 

The brokerage has maintained its ‘Reduce’ stance and said it will publish a detailed note after the company’s conference call scheduled for February 13, 2026.  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.