Bata India is stepping up its distribution expansion and inventory management efforts as it seeks to accelerate growth and improve profitability, with the footwear maker reporting a 31.4% year-on-year increase in adjusted profit before tax (PBT) in the September quarter, significantly outpacing its 7.5% revenue growth.The company reported revenue from operations of Rs 861.8 crore in Q2 FY27, while adjusted PBT rose to Rs 36 crore from Rs 27.4 crore a year earlier. Cash operating profit increased 9.3% to Rs 158.8 crore, while PBT margin improved 76 basis points year-on-year to 4.2%.The improvement comes as Bata sharpens its focus on expanding distribution beyond its traditional exclusive retail network, improving product availability and reducing inventory. Its distribution channel registered double-digit year-on-year growth, while secondary sales increased in the mid-twenties, according to its Q2 investor presentation.The company has expanded its key retail outlet (KRO) network 2.6 times over the past year to 3,895 in September 2026 from 1,478 in September 2025. It is targeting more than 5,000 such outlets by the third quarter of FY27.Bata also has a presence across more than 17,000 multi-brand outlets (MBOs), while the number of towns covered by its distribution network increased to 1,690 in September from 1,635 a year earlier. The company has around 200 field sales representatives supporting the expansion.Men’s open and men’s closed footwear categories continue to drive growth, the presentation said.
Inventory clean-up improves full-price sales
Alongside distribution expansion, Bata is working to improve inventory productivity and reduce dependence on discounting to move merchandise.The company’s inventory index declined 26% from the Q2 FY24 level, while stock turns improved 21% year-on-year to 2.6 in Q2 FY27 from 2.2 a year earlier. The share of full-price sales increased to 86% from 77% in the year-ago quarter, suggesting a greater proportion of merchandise was sold without discounts.Product availability also improved 18% year-on-year.The company said inventory efficiencies, both in terms of quantity and quality, continued to show strong progress, alongside improvements in demand planning.For footwear retailers, tighter inventory management can help limit markdowns and reduce the risk of unsold seasonal merchandise. The improvement in full-price sales could therefore support profitability if sustained, although the presentation does not quantify its contribution to the quarter’s profit growth.
Digital business expands as Bata scales omnichannel reach
Bata is also looking to strengthen its digital business by integrating its online operations with its physical store network.Bata.com recorded 26% year-on-year growth, while overall e-commerce sales, including marketplaces and Bata.com, increased 5.4%. Digital sales contributed 13.3% of the company’s turnover, the presentation showed.Its Myntra MNow service is operational through more than 300 stores. Around 55% of home-delivery orders are delivered within 48 hours, while the company’s three-hour delivery model covers approximately 1,800 serviceable pincodes.Bata’s mobile application has crossed 450,000 downloads and contributes around 14% of Bata.com’s business.On the profitability front, gross margin increased 8 basis points year-on-year to Rs 478 crore, although the company cited a negative 58-basis-point impact from channel mix.
