Bata India Shares Hit 7-Year Low as Footwear Stocks Face Steep Decline

Bata India shares have continued their downward journey, hitting a multi-year low of ₹963.30 in today’s session, December 2, 2025. Investor sentiment remains weak, reflecting persistent challenges for the iconic footwear maker. Over the past 15 months, the stock has lost nearly 40%, signalling its steepest annual fall in 16 years.

Market Performance: A Steady Slide

The decline in Bata India’s shares has been long and relentless:

• From a record high of ₹2,262 in November 2021, the stock has erased 58% of its value.
• The current streak has seen the stock close lower in 13 of the past 16 months, underscoring prolonged selling pressure.
• Year-to-date, 2025 has been especially challenging, with a 30% drop, marking the weakest annual performance since 2008, when the stock tumbled 63%.
• The company’s market capitalisation now stands at around ₹12,400 crore, reflecting a significant erosion of shareholder wealth.

Bata India Q2FY26 Performance: Weak Numbers Add Pressure

The latest quarterly results revealed ongoing operational challenges:

• Revenue declined 4% YoY to ₹801 crore, marking the worst performance in ten quarters.
• Top-line pressure was driven by deferred purchases from channel partners and customers, following the announcement of GST rate rationalisation.
• Disruption at one of the company’s major warehouses in July 2025 also temporarily affected operations.

Profitability faced further strain:

• Gross margin contracted 122 basis points YoY to 55.4%, impacted by pre-festive markdowns and higher marketing spends.
• EBITDA fell 17% YoY to ₹145 crore, with margins dipping 280 basis points to 18.1%.
• Net profit dropped sharply by 73.26% YoY to ₹13.9 crore, influenced partly by a one-off voluntary retirement scheme expense.

Company Initiatives: Signs of Recovery

Despite the weak quarter, Bata India has shown early signs of stabilising operations:

• The GST 2.0 transition muted demand in Q2, but sales momentum picked up from September 22, 2025, after the new GST rates came into effect.
• Premium brands like Hush Puppies and Power are reporting stronger growth.
• The zero-base merchandising initiative, designed to boost efficiency and enhance customer experience, has expanded to 200 stores.

While these efforts hint at potential improvement, the stock continues to reflect market caution amid ongoing competition and operational hurdles.

Summary: Footwear Stocks Face Headwinds

Bata India’s shares are currently under intense selling pressure, reflecting broader challenges in the footwear segment. With revenue declining, profitability under strain, and market sentiment remaining subdued, the stock has hit levels not seen in seven years.

• Share price: ₹963.30 (multi-year low)
• 15-month decline: 40%
• Annual drop in 2025: 30%
• Q2FY26 revenue: ₹801 crore (-4% YoY)
• EBITDA: ₹145 crore (-17% YoY)
• EBITDA margin: 18.1% (-280 bps YoY)
• Net profit: ₹13.9 crore (-73.26% YoY)

Bata India’s operational recovery, performance of its premium brands, and efficiency initiatives are under close watch as the company works through this challenging phase.