Bata India is actively working on improving its inventory management as part of its efficiency initiatives. The company reported a significant 13% decrease in gross inventory for the fourth quarter of FY26, indicating progress in its operational strategies.
Gunjan Shah, managing director and CEO, noted that while substantial progress has been made, there remains potential for further improvements. The inventory days have notably decreased to 73, down from 85 days in FY25, thanks to measures like accelerated clearance of aged stock and tighter inventory controls.
The reduction in inventory has been supported by Bata's omni-channel strategy, which has enabled approximately 700 stores to fulfill online orders, optimizing inventory usage across channels.
Financial Performance
Despite the positive strides in inventory management, Bata India faced challenges in its financial performance, reporting a 95.2% year-on-year decline in consolidated net profit to ₹2.2 crore in Q4. This was primarily due to costs associated with a voluntary retirement scheme and foreign exchange losses. Additionally, raw material prices have risen in the mid-single digits, although the company has yet to pass these costs on to consumers.
Future Growth Strategies
Bata is focusing on new product designs and store expansions to drive growth in the upcoming year. The management anticipates a significant enhancement in product offerings, particularly from a central design perspective, over the next 12 months.
To attract younger consumers, the company is emphasizing sneaker products and has ramped up marketing efforts, with advertising expenditures increasing by 1.5 times in the last quarter, primarily directed towards digital platforms.
Sales Insights
Bata experienced a volume-led revenue growth of 4.9%, reaching ₹827.6 crore in the quarter, with sales improving notably in March compared to January. The company is also working to reduce the proportion of discounted sales, aiming for a more robust full-price sale growth.
Market Response
Following the quarterly results, Bata's shares saw a slight decline of 0.63%, closing at ₹666.05 on the National Stock Exchange. The company's stock has decreased by 29.65% in 2026, contrasting with a 10.4% drop in the Nifty index.
