Total operating expenditure increased by 3.6% to Rs 774.98 crore in Q1 FY27 over Q1 FY26, primarily due to higher finished goods purchases (up 12.2% YoY) and higher other expenses (up 12.9% YoY).

Profit before tax in Q1 FY27 stood at Rs 85.90 crore, down 22.6% from Rs 70.07 crore in Q1 FY26.

The company stated that continued focus on operational efficiency, disciplined cost management and sharper execution across channels, enabled operating cash profit of Rs 216.6 million for the quarter, reflecting an increase of 7.6% over the previous year.

The board of Bata has also announced an interim dividend of Rs 25 per share, amounting to Rs 321.3 million.

Gunjan Shah, managing director and CEO, Bata India, said: “Continuing on the growth momentum for third consecutive quarter, we are pleased to report a topline growth of 4% in Q1FY27, led by blend of premiumization and volume growth.

The growth is supported by strong consumer engagement with our advertising investments up by nearly 25%. We successfully navigated the global geopolitical situation impacting freight costs, shipping and transit time.”

“Inventory metrics continued to improve both in terms of quantity and quality, with gross inventory lower by over 10% as compared with 30 June 2025. Zero Base Merchandising Project was scaled to 775 stores delivering exciting results on consumer experience and revenue per square feet.

We delivered a healthy gross margin gain of 130 basis points, with highest full price sale and lower markdowns. Growth was broad-based, with all channels contributing positively, with significant growth in ecommerce,” he added.

Bata India (BIL) is one of the largest footwear manufacturers in India and sells a wide range of footwear in canvas, rubber, leather and plastic. The company has four manufacturing units at Batanagar (Kolkata), Bataganj (Bihar), Peenya (near Bangalore), and Hosur (Tamil Nadu). BIL sells footwear under the Bata brand through more than 2,053 retail outlets across India and a large number of other outlets, served by various Bata dealers.