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Sustained demand weakness
View Risks →Bata India Limited — Q4 FY25
Bata India's Q4 FY25 revenue declined 1.2% YoY to INR 788 crore, with PAT down 215 bps to INR 46 crore.
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2-Minute Summary
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Bata India's Q4 FY25 revenue declined 1.2% YoY to INR 788 crore, with PAT down 215 bps to INR 46 crore. EBITDA margin contracted 14 bps to 25.5%, impacted by gross margin erosion of 230 bps due to channel mix shift and value investments. Management highlighted progress on zero-based merchandising (146 stores), inventory reduction (16% YoY), and volume growth in mid-single digits. Floats revenue crossed INR 100 crore and is expected to reach INR 200 crore this year. Guidance points to higher store additions and continued inventory agility. Risk: sustained demand weakness could delay volume-led revenue recovery.
बाटा इंडिया की चौथी तिमाही (Q4 FY25) की कमाई पिछले साल के मुकाबले 1.2% घटकर 788 करोड़ रुपये रही। मुनाफा (PAT) 46 करोड़ रुपये पर आ गया, जो पहले से 2.15% कम है। कंपनी की कमाई पर खर्च का अनुपात (EBITDA मार्जिन) 25.5% रहा, जो थोड़ा कम हुआ। इसकी वजह है सस्ते चैनलों पर ज्यादा निर्भरता और कीमतों में छूट देना। कंपनी ने 146 दुकानों में नए तरीके से माल रखना शुरू किया, स्टॉक 16% घटाया, और बिक्री में मामूली बढ़त दर्ज की। फ्लोट्स जूतों की बिक्री 100 करोड़ पार कर गई और इस साल 200 करोड़ होने की उम्मीद है। आगे और दुकानें खोलने और स्टॉक को जल्दी बेचने पर जोर रहेगा। खतरा: अगर मांग कमजोर रही, तो बिक्री बढ़ाने में देरी हो सकती है।
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Read Transcript →Quarter Snapshot
Zero-based merchandising stores
146
+106 stores QoQ
Expanded from ~40 stores last quarter; target 300+ by June end.
Inventory reduction
16%
-16% YoY
Total inventory dropped 16% YoY; aged inventory down 37%.
Floats revenue run-rate
INR 100 Cr+
+100% YoY
Floats revenue crossed INR 100 crore; expected to reach INR 200 crore this year.
Volume growth
Mid-single digits
Positive YoY
Second consecutive quarter of broad-based volume growth in mid-single digits.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
NEW
Continued inventory agility improvement
Inventory reduction and quality improvement will continue, with aged inventory targeted to reach best-in-class levels of 2-3%.
DROPPED
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.
DROPPED
Inventory reduction and availability improvement
Inventory at eight-quarter low; management targets further 10 ppt improvement in availability for top articles.
DROPPED
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.
NEW RISK
Gross margin pressure from channel mix and value investments
Shift towards franchise and e-commerce, along with value proposition initiatives, may continue to pressure gross margins.
NEW RISK
Execution risk in ZBM scale-up
ZBM rollout was behind initial target of 250 stores by Q4; scaling to 300+ by June may face challenges.
RISK GONE
ZBM rollout delays
Target of 100 stores by Dec missed; only 17 completed. Execution risk remains for scaling to 250-300 stores.
RISK GONE
Franchise mix depressing gross margins
Analyst noted that rising franchise share mathematically lowers gross margins; management confirmed but said EBITDA impact is neutral.
RISK GONE
Power EBO profitability uncertain
Seven Power EBOs show improving trading density but management not satisfied; expansion contingent on hitting targets.
Fast read
Guidance and risk preview
Management expects store additions in FY26 to exceed the ~100 stores added in FY25, with an 80:20 franchise-to-COCO mix.
Muted demand environment may delay volume-led revenue recovery despite operational improvements.
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