However, on a YoY basis, the company's consolidated net profit increased 30.78%, while revenue from operations rose 7.54% during the quarter.

The company reported certain one-off expenses during the quarter, including a non-cash foreign exchange loss of Rs 3 crore on license fees due to continued currency depreciation and a one-time asset write-off of Rs 3.9 crore. Other income declined by Rs 4.6 crore, primarily due to the distribution of surplus funds amounting to Rs 321.3 crore as a special dividend during the quarter.

Sanjay S. Rao, managing director and CEO, Bata India, said, “On a quarterly basis, the growth momentum continued for the fourth consecutive quarter, with a topline growth of over 7.5% in Q2FY27, robust LFL & ASP growth in Retail, and double-digit growth in Franchise and I&D channels.

Gross margin improved marginally, and operating performance continued to strengthen. Inventory improved in both quantity and quality, with freshness at 92% and net stock 7% lower than on September 30, 2025. We now have more than 2,000 stores (including franchise) and over 3,800 key retail outlets (KROs), and are optimising the network to drive footfall.

Zero Base Merchandising, now in 850 stores, has improved consumer experience and revenue per sq. ft. Despite higher input costs and wage revisions, freshness and prudent sourcing delivered our highest full-price sales and lower markdowns. We remain focused on profitable growth through premiumisation, network expansion, sharper assortment, volume growth, consumer engagement, operational excellence and disciplined capital allocation. With festive business shifting to Q3, we expect the growth momentum to continue,” he added.

Bata India is footwear retailer and manufacturer in the country. Its expansive retail network consists of more than 2000 stores (Company Owned and Franchise), supported by thousands of Multi Brand Outlets and a robust omni-channel presence across D2C and marketplaces.