Bata India FY25 Annual Earnings Summary
3 quarters covered · ₹2,651 Cr revenue · ₹278 Cr PAT · 16.1% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Risks flagged during the year
Same-store sales were negative low single digits; if this persists, margin recovery will be delayed.
Q3 FY25 · highRevenue growth of only 1.7% indicates sluggish demand; management acknowledged consumer pinch from inflation.
Q4 FY25 · highMuted demand environment may delay volume-led revenue recovery despite operational improvements.
Q1 FY25 · mediumMass distribution and value segment (sub-₹300) remain sluggish, with no clear turnaround timeline.
Q1 FY25 · mediumERP and IT-related one-time costs (~300 bps) impacted EBITDA; while largely behind, similar charges could recur.
Q3 FY25 · mediumTarget of 100 stores by Dec missed; only 17 completed. Execution risk remains for scaling to 250-300 stores.
Q3 FY25 · mediumAnalyst noted that rising franchise share mathematically lowers gross margins; management confirmed but said EBITDA impact is neutral.
Q3 FY25 · mediumSeven Power EBOs show improving trading density but management not satisfied; expansion contingent on hitting targets.
Q4 FY25 · mediumShift towards franchise and e-commerce, along with value proposition initiatives, may continue to pressure gross margins.
Q4 FY25 · mediumZBM rollout was behind initial target of 250 stores by Q4; scaling to 300+ by June may face challenges.
Q1 FY25 · lowA small, non-material part of the portfolio is still stabilizing domestic sourcing for BIS compliance.
What changed through the year
Q1 FY25 · 120-150 new stores annually, 80% franchise
Management targets 120-150 new EVO stores per year, with ~80% being franchise and ~20% company-owned.
Q1 FY25 · Power EBOs to exceed 100 by year-end
Power exclusive brand outlets to expand from 70 to over 100 by December 2024.
Q1 FY25 · Float kiosks to double to ~30 in two quarters
Float kiosks to increase from 16 to about 30 by December 2024.
Q1 FY25 · Marketing spend to remain elevated at 250-300 bps
Marketing investments will continue at 250-300 basis points of sales, supporting brand launches.
Q3 FY25 · Zero-Based Merchandising rollout to 250-300 top stores by FY26
Management aims to cover top 50% turnover stores (approx. 250-300) with ZBM, targeting improved sales per sq ft and ROIC.
Q3 FY25 · Inventory reduction and availability improvement
Inventory at eight-quarter low; management targets further 10 ppt improvement in availability for top articles.
Q3 FY25 · Store additions to return to 30-40 per quarter
After a quarter of net flattish additions due to closures, gross additions will resume to 30-40 EBOs per quarter.
Q4 FY25 · Store additions to be higher than last year
Management expects store additions in FY26 to exceed the ~100 stores added in FY25, with an 80:20 franchise-to-COCO mix.
Q4 FY25 · Zero-based merchandising to cover 300+ stores by June end
Target to expand ZBM to ~300 stores by June 2025, covering ~45-50% of retail turnover.
Q4 FY25 · Floats revenue expected to reach INR 200 crore this year
Floats brand revenue, which crossed INR 100 crore in FY25, is expected to double to INR 200 crore in FY26.
Q4 FY25 · Continued inventory agility improvement
Inventory reduction and quality improvement will continue, with aged inventory targeted to reach best-in-class levels of 2-3%.