Bata India Q4 Profit Slides 28%; Declares Rs 19 Total Dividend for FY25

Footwear giant Bata India Ltd. on Wednesday reported a sharp decline in its fourth-quarter earnings, with net profit falling 27.7 per cent year-on-year (YoY) to Rs 46 crore, compared to Rs 63.6 crore in the same quarter last fiscal year. The subdued performance was attributed to a dip in revenue and a sharp compression in operating margins.

Revenue for Q4FY25 came in at Rs 788.2 crore, slightly down 1.2 per cent from ₹797.8 crore a year ago. Operating profit declined to ₹37.41 crore from Rs 58.26 crore, while EBITDA dropped 26.4 per cent to Rs 53.8 crore, as the EBITDA margin contracted by over 200 basis points to 6.83 per cent, down from 9.16 per cent in Q4FY24.

Despite the weak financials, the board recommended a final dividend of Rs 9 per share, taking the total dividend payout for FY25 to Rs 19 per share. This includes the ₹10 interim dividend paid in September 2024. The total dividend outgo for the year amounts to Rs 244.2 crore, subject to shareholder approval.

Bata India’s management remained optimistic, pointing to volume-led growth for the second consecutive quarter, driven by strong traction in franchise and e-commerce channels. The company’s retail network expanded to 1,962 stores, including company-owned and franchise outlets, as part of its push toward a more asset-light model.

Significant progress was also made in inventory management. Bata slashed its gross inventory by 15 per cent, bringing it down to ₹815.06 crore as of March 31, 2025. The company implemented targeted initiatives to enhance stock turnover and demand forecasting, improving operational agility.

Another highlight was the expansion of the zero-base merchandising project, now covering 146 stores, which has contributed to better customer experience and higher revenue per square foot.

The Q4 results were announced post-market hours. Shares of Bata India ended the day at Rs 1,276.50, down Rs 2.85 or 0.22 per cent on the BSE.

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