Bata India Limited — Q2 FY26
Bata India reported Q2 FY26 revenue of INR 8,000 million, down 4% YoY, impacted by GST transition disruption and a distribution center transition.
bearish
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
59%Questions answered3Evaded / deflected11Questions auditedConsistentNumbers vs filing
Answered
High priority
Quantify GST disruption impact on revenue growth.
Asked by Sameer Gupta, India Infoline
Management provided a specific estimate of 400 bps impact on revenue.
Read the exchange
Question
Firstly, if you quantify the impact of GST-related disruption that you have called out, both in terms of your channel partners as well as consumers, whatever the best judgment that you have, the idea is to understand the normalized growth or decline this quarter had these issues not been there.
Gunjan Shah, MD and CEO
we assume if the transitions would not have been there, we would have at least reported a flat revenue versus a 4% decline what we're seeing right now from a top-line perspective.
Answered
High priority
What is pulling down EBITDA margin besides weak same-store sales?
Asked by Sameer Gupta, India Infoline
Management explained specific factors: gross margin erosion and freshness drive.
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Question
what is then pulling this down? I mean, is there a factor apart from same-store sales or subdued sales which is pulling this down?
Amit Agarwal, Director of Finance and CFO
there are two large impacts, one being the gross margin erosion... The second, the drive to continuously improve the freshness...
Evasive
High priority
Is there an EBITDA margin range target and path to it?
Asked by Sameer Gupta, India Infoline
Management declined to provide a target range, citing no forecasts.
no forecast givendeflected to one-off nature
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Question
is there an EBITDA margin range that you are targeting, and what will lead us to that?
Gunjan Shah, MD and CEO
So while we don't give you a forecast, Sameer, right, but some of these were typical... incidences/actions for the quarter gone by, so we should not see them repeating.
Declined
High priority
Same-store sales growth for COCO stores during Navratri vs last year.
Asked by Saurabh Kundan, Goldman Sachs
Management explicitly refused to provide the requested same-store sales growth number.
refused to share number
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Question
if you could please share the same-store sales growth of your company-owned stores for festive versus festive last year.
Gunjan Shah, MD and CEO
We don't reveal and share that, but what I can tell you is... there was obviously a disproportionate impact...
Answered
Medium priority
How long before channel hygiene normalizes after GST disruption?
Asked by Saurabh Kundan, Goldman Sachs
Management stated channel is already normal, no long-running disruption.
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Question
How long before the channel hygiene there is okay and the channel health there is okay and you start getting your primary sales? Could it take another couple of quarters?
Amit Agarwal, Director of Finance and CFO
the moment 22 September happened, the buying resumed, and everything is live now. It's just that the backlog we could not service in just seven to nine days...
Partial answer
Medium priority
Why didn't Bata capture festive demand like other retailers?
Asked by Tejas Shah, Avendus Spark
Management explained but did not quantify how much demand was lost.
no quantification of lost demand
Read the exchange
Question
I just wanted to see the disruption we called out, but I thought that there were tailwinds also in terms of early Navratri... So just wanted to know, was it that we could not kind of capture the demand because of the disruption?
Gunjan Shah, MD and CEO
East is about 20% of our business... there was a disruption-related impact on the 22nd that was obviously not recovered as fast.
Evasive
Medium priority
What is the core problem still not responding despite interventions?
Asked by Tejas Shah, Avendus Spark
Management did not pinpoint a core problem, instead listed ongoing initiatives.
no specific problem identifiedreframed as ongoing work
Read the exchange
Question
So where would you narrow down the core of the problem which is still not responding?
Gunjan Shah, MD and CEO
I think our hypothesis is exactly on the lever that we are working on... investments into now expansion in the right channels... product funnel getting reimagined.
Answered
High priority
Strategy for value vs premium and impact on volume and ASP.
Asked by Prerna Jhunjhunwala, Elara Capital
Management explained dual strategy for volume and premium.
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Question
I just wanted to understand your strategy in terms of value versus premium and how it could impact volume versus ASPs...
Gunjan Shah, MD and CEO
Bata will continue to drive volumes. We will want within that the full-price sales to go up significantly... Premiumization will be driven by certain categories...
Partial answer
High priority
Volume growth and ASP decline this quarter due to inventory declutter.
Asked by Prerna Jhunjhunwala, Elara Capital
Management gave ASP change but not volume growth figure.
no volume growth number given
Read the exchange
Question
just wanted to understand this quarter, how was the volume growth and what was the ASP decline because of this inventory declutter?
Gunjan Shah, MD and CEO
Overall, flat on ASP.
Partial answer
Medium priority
Will margins recover to previous levels in two years?
Asked by Prerna Jhunjhunwala, Elara Capital
Management addressed near-term but not two-year recovery.
no long-term margin target given
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Question
Do you see any margin impact going forward... do we get back to similar margins that you're doing earlier in the next two years?
Amit Agarwal, Director of Finance and CFO
next quarter, which is a big EOSS period, we should see significantly lower markdown impact on gross margin... overall margin should come out to be better compared to the previous year.
Answered
Medium priority
What percentage of portfolio is below INR 1,000, 1,000-2,500, above 2,500?
Asked by Sameer Gupta, IIFL Securities
Management provided exact percentages.
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Question
Can you just quantify the percentage of portfolio now, which is below 1,000, between 1,000 and 2,500, and the rest would be about 2,500?
Gunjan Shah, MD and CEO
So about 40% below 1,000, 40% between 1,000 and 2,500, and 20% above 2,500. 40, 40, 20.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Revenue would have been flat without GST disruption vs 4% decline | -4% | -4% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.