Bata India Q2 Profit Rises 28.6%, Ebitda Margin Contracts To 16.7%

What happened

Bata India reported a 28.6 per cent year-on-year rise in consolidated net profit to Rs 18 crore in Q2FY27, compared with Rs 14 crore a year earlier. Revenue rose 7.6 per cent to Rs 862 crore, while Ebitda margin fell to 16.7 per cent from 18.1 per cent.

Confirmed

Global impact / market context

Profit grew faster than revenue while Ebitda margin, which means the share of sales left after running costs, narrowed. Higher sales did not carry through to operating profit, so cost pressure and one-time charges absorbed part of the top-line gain rather than lifting earnings quality.

Analyst inference

Ebitda was almost flat at Rs 144 crore versus Rs 145 crore, so the profit rise leaned on lower tax or interest costs and a weak prior-year base. The Rs 321.3 crore special dividend cut surplus funds, shrinking other income by Rs 4.6 crore and reducing cash available.

Analyst inference

What to watch

1. Watch whether Ebitda margin recovers from 16.7 per cent toward the 18.1 per cent level of a year ago, since flat Ebitda despite 7.6 per cent revenue growth shows costs rising in step with sales. Confirmed
2. Track the size of one-time items such as the Rs 3 crore foreign exchange loss on licence fees and the Rs 3.9 crore asset write-off, because repeat charges would keep reported profit below operating performance. Proposed
3. Monitor like-for-like sales and average selling price growth in retail, since the company cites both as drivers; weaker volumes or discounting would pressure revenue and profit per sale in coming quarters. Analyst inference

Evidence

• Original source link unavailable