Bata India Q1 profit rises 23 per cent, declares Rs 25 dividend

MUMBAI: Bata seems to have found its footing, with the footwear major posting a stronger first quarter as profit and revenue moved up, while the company also put some extra spring in shareholders’ step with a Rs 25 interim dividend.

Bata India reported consolidated profit for the quarter ended 30 June 2026 at Rs 639.84 crore, up 23 per cent from Rs 519.99 crore in the year-ago quarter. Total income rose nearly 4 per cent to Rs 996.98 crore from Rs 958.84 crore a year earlier, according to the company’s unaudited financial results approved by its board on 11 August.

Revenue from operations stood at Rs 978.95 crore, compared with Rs 941.85 crore in the corresponding quarter last year. Other income also increased to Rs 18.03 crore from Rs 16.99 crore, taking total income to Rs 996.98 crore.

The improvement came even as total expenses climbed to Rs 911.09 crore from Rs 883.99 crore. Profit before exceptional items and tax rose to Rs 858.95 crore, compared with Rs 748.47 crore in Q1 FY26. After tax, profit stood at Rs 639.84 crore, while total comprehensive income rose to Rs 654.08 crore from Rs 525.63 crore.

Bata operates in a single business segment covering footwear and accessories. Employee benefits expense stood at Rs 113.61 crore, purchases of stock-in-trade at Rs 329.68 crore and other expenses at Rs 218.47 crore during the quarter.

Bata’s earnings also come with a shareholder-friendly kicker. The board declared an interim dividend of Rs 25 per equity share, equivalent to 500 per cent of the Rs 5 face value of each share. The record date is 19 August 2026, with dividend payments scheduled to begin from 2 September 2026.

The quarter also marks a significant improvement over the previous three months. In Q4 FY26, Bata reported total income of Rs 847.38 crore and profit of Rs 22.08 crore, although that quarter included exceptional costs related to voluntary retirement schemes. The June quarter did not carry a comparable exceptional charge.

The company had incurred Rs 28.06 crore towards a voluntary retirement scheme during the March 2026 quarter and another Rs 4.78 crore in the June 2025 quarter. A separate VRS at another manufacturing unit resulted in Rs 9.53 crore of expenditure during FY26.

Bata also recognised an additional Rs 6.67 crore liability following changes arising from India’s Labour Codes, primarily relating to gratuity and leave liabilities.

At the consolidated level, Bata India includes its wholly owned subsidiaries Bata Properties Ltd and Way Finders Brands Ltd. The consolidated results were reviewed by the audit committee and approved by the board on 11 August 2026.

The takeaway from Bata’s June quarter is fairly straightforward: revenue moved higher, profit picked up sharply and shareholders are getting a sizeable interim payout. For a footwear company, that is one quarter where the numbers appear to be walking in the right direction.