Bata India Q1 Profit Rises 23% as Premiumisation, Advertising Drive Growth

Bata India reported a year-over-year growth of 23% in profit after tax to ₹63.7 crore for the quarter ended June 30, 2026, premiumisation, higher average selling prices and stronger consumer engagement helped its third consecutive quarter of accelerating growth.

Revenue for the quarter increased by about 4% to ₹978.9 crore, from ₹944.7 crore a year ago. Profit before tax, excluding one-offs, increased more than 22% to ₹90.6 crore from ₹74.5 crore. 

Bata’s operating cash profit increased 7.6% to ₹216.6 crore and the company announced an interim dividend of ₹25 per share aggregating ₹321.3 crore.

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Advertising Investment Rises:

One of the key learnings for the marketing industry was the increased investment by Bata in consumer engagement. Advertising investments were up nearly 25% year on year, said Gunjan Shah, managing director and CEO.

“We are pleased to announce a topline growth of 4% in Q1FY27 continuing the growth momentum for the third consecutive quarter, driven by blend of premiumization and volume growth. “The growth is driven by strong consumer engagement with our advertising investments up nearly 25%,” Shah said.

The increased investment comes as Bata seeks to increase the relevance of its brands and to drive consumers to higher-value products.

The company said revenue growth was driven by a combination of premiumisation and volume growth, meaning higher-value products are playing a part alongside wider consumer demand.

Bata’s portfolio includes Bata Red Label, Bata Comfit, Power, NorthStar, Floatz, Bubblegummers and Hush Puppies across various consumer segments and occasions.

The company has a retail network and other channels thru which it serves more than 250,000 customers a day and sells nearly 50 million pairs each year.

Its premiumisation strategy also led to a 130-basis-point improvement in gross margin, driven by its highest full-price sales and lower markdowns. That means consumers are more willing to accept products that don’t rely so heavily on discounts.

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E-commerce Adds to Growth:

Growth in the quarter was broad based across channels with Bata highlighting significant growth in e-commerce.

The footwear maker has around 2,000 company-owned and franchised stores, thousands of multi-brand outlets and an omnichannel footprint, including the direct-to-consumer platform and marketplaces.

The mix gives Bata multiple consumer touchpoints as footwear shopping is moving increasingly between physical stores, brand websites and third-party platforms.

The established footwear brand wants to keep the size and recognition of its physical network, while utilising online channels to reach consumers looking for more choice and convenience.