Bata India Ltd

KMP contact data updated

• KMPs authorized for materiality determinations and disclosures updated: Gunjan Shah, Sanjay S. Rao, Amit Aggarwal, Nitin Bagaria.
• Gunjan Shah – MD & CEO; +91 9266686547; in-ceo@bata.com.
• Sanjay S. Rao – WTD & CEO; +91 9266686547; in-ceo@bata.com.
• Amit Aggarwal – Director Finance & CFO; +91 9266686547; in-cfo@bata.com.
• Nitin Bagaria – AVP (Special Projects) CS & Compliance Officer; +91 9266686547; in-company.secretary@bata.com.

Financial Performance

• Turnover ₹979 crores, up 4% YoY, driven by volume and value growth.
• Underlying PBT growth ~22% in the quarter.
• Crossed 2,000 EBO stores; first brand in the country to reach this milestone.
• Product funnel reimagined; impact expected as stores roll out with campaigns.
• Google My Business scores improved; external NPS signal strengthened.

Cost and Pricing

• Raw material cost push in the range of 5%–6%; price increases implemented.
• Inventory holding period around 140–150 days; impact expected from current quarter.
• Full-price share around 89–90%; channel mix dilutes gross margin by ~100 bps.
• Consolidation savings expected to yield ~0.2–0.3% annual gross-margin delta.

Store Network and Brand Momentum

• Total stores ~2,000+; DOS stores ~1,250; Franchise stores ~750.
• 775 Bata COCO stores contribute ~80% of COCO revenue.
• ZBM 2.0 is in progress; results to be shared next quarter.
• By March 2027, significant change in product portfolio expected with design/comfort emphasis and technology.

Margin and Productivity

• Gross-margin uplift implied by inventory quality and higher fresh-sales mix; channel mix dilutes margin.
• Current quarter gross-margin uplift vs potential: ~230–240 bps vs observed ~130 bps.
• Franchise partner ROI framework: ~18–24% ROI.

Marketing and Growth Initiatives

• Marketing spends have risen; last three quarters showed double‑digit growth; last quarter +25%.
• Advertising as a percentage of sales currently ~3–3.5% (vs ~2.5% a year back).
• Digital and franchise expansion to be supported by elevated marketing spends.

Guidance and Outlook

• Management does not provide formal revenue guidance for Bata.
• Monsoon-related revenue deferral noted in prior quarter; improvement expected in July–August.
• Store expansion target remains to reach 3,000 stores in the future.
• Franchise trade areas with potential >600; substantial growth runway anticipated.

Q&A Highlights

• Cost inflation of 5–6% passed through via price increases; inventory 140–150 days.
• Full-price mix near 89–90%; 130–140 bp gross-margin impact due to channel mix; premiumization to offset.
• COCO vs DOS: 1,250 DOS stores; ~750 franchise; total ~2,000+ EBOs; 775 COCO stores drive 80% of COCO revenue.
• Product funnel revamp to reduce clutter; 68% lines per store vs 2 years ago; expected to trend toward ~60%.
• Premium product introduction and design-led portfolio to hit stores by FY27 end; marketing to back growth.
• Advertisement spend guidance: 3–3.5% of sales now; unlikely to jump to 7–8% immediately.

Meeting Details

• Date: August 13, 2026; Post-earnings group audio conference call.
• Recording: Audio recording uploaded to Bata India's website.
• Participants: Management attendees as disclosed in August 4, 2026 letter.
• Purpose: Post-earnings discussion with investors.
• Event/organiser: Post Earnings Conference Call; organiser not specified.

AGM details

• Date and time: 12-08-2026, 11:30 AM–12:52 PM, mode: video conferencing.
• Record date: 05-08-2026.
• Last date for postal ballot: 12-08-2026.
• Attendance: public 192, promoters 1 via video conferencing.

Key resolutions

• Ordinary: Adoption of standalone financial statements and reports.
• Ordinary: Declaration of dividend of Rs 5 per equity share.
• Ordinary: Re-appointment of director on rotation (DIN 0337180).
• Ordinary: Re-appointment of another director on rotation.
• Ordinary: Appointment of director and fixation of remuneration.
• Ordinary: Remuneration of whole-time director approved.

Voting results

• All six resolutions passed.
• Dividend resolution approved with strong in-favour support.
• No material dissent noted.

Dividend

• Dividend per equity share: Rs 5.

Director changes

• Re-appointment of director on rotation (DIN 0337180) approved.
• No new directors appointed.

Remuneration approvals

• Remuneration for a whole-time director approved.

Other material approvals

• No material related-party transactions disclosed.

Directorate changes

• Appointment as Director: Sanjay S. Rao approved as Director, liable to retire by rotation.
• WTD appointment: Rao appointed Whole-time Director from Aug 24, 2026 to Sep 30, 2026.
• MD appointment: Rao appointed Managing Director for term Oct 1, 2026 to Aug 23, 2031.
• AGM approval: Members approved changes at the 93rd AGM held Aug 12, 2026.
• Not debarred: Rao not debarred from holding director's office by SEBI or other authorities.

AGM Details

• Date and time: 12 August 2026 at 11:30 IST; mode: VC/OAVM.
• Record date for voting: 5 August 2026.

Key Resolutions & Outcomes

• Resolution 1 (Ordinary): Adoption of Audited Financial Statements approved.
• Resolution 2 (Ordinary): Dividend of Rs 9 per equity share approved.
• Resolution 3 (Ordinary): Re-appointment of Gerd Graehsler as Director approved.
• Resolution 4 (Ordinary): Appointment of Sanjay S. Rao as Director approved.
• Resolution 5 (Ordinary): Appointment of Sanjay S. Rao as Whole-time Director; remuneration fixed.
• Resolution 6 (Ordinary): Appointment of Sanjay S. Rao as Managing Director; remuneration fixed.

Director Changes

• Gerd Graehsler re-appointed as Director by rotation.
• Sanjay S. Rao appointed as Director by rotation.
• Sanjay S. Rao appointed Whole-time Director; remuneration fixed.
• Sanjay S. Rao appointed Managing Director; remuneration fixed.

Auditors & Governance

• Statutory and secretarial auditors attended; no changes announced.