Bata India Q4 profit slumps 95 pc due to one-time loss
Mumbai, May 27
Footwear major Bata India on Wednesday reported a sharp 95.2 per cent decline in consolidated net profit for the fourth quarter of fiscal 2026, as a one-time loss weighed heavily on its bottom line despite higher revenue growth.
The company's net profit stood at Rs 2.2 crore for the quarter ended March 31, 2026, compared with Rs 45.9 crore in the corresponding period of the previous financial year, according to a stock exchange filing. Bata India said the quarter was impacted by a one-time loss of Rs 28 crore.
Revenue from operations rose 5 per cent year-on-year to Rs 828 crore during the January-March quarter, up from Rs 788 crore in the same period last year.
However, profitability remained under pressure. Earnings before interest and taxes (EBIT) declined 15.3 per cent to Rs 151 crore from Rs 178 crore a year earlier. As a result, the company's operating margin contracted to 18.2 per cent from 22.6 per cent in the year-ago quarter.
Despite the sharp fall in quarterly profit, Bata India announced a final dividend of Rs 9 per equity share for fiscal 2026. The proposed payout will result in a distribution of nearly Rs 115.67 crore to shareholders.
The company said the final dividend is subject to approval by shareholders at the upcoming Annual General Meeting (AGM). The record date to determine shareholder eligibility has been fixed as July 31, while the dividend payment will commence from August 27 onwards.
Bata India had also rewarded shareholders in recent years through regular dividend payouts. The company paid a final dividend of Rs 9 per share in August 2025, while shareholders received Rs 10 per share in August 2024 and Rs 12 per share in July 2024. In August 2023, the company had declared a dividend of Rs 13.50 per share.
— IANS
Reader Comments
Revenue up 5% but profit down 95%? That one-time loss of Rs 28 crore hit hard. Bata needs to explain what it was—operation cost or something else?
As a Bata shareholder, this is concerning. But dividend payout of Rs 115 crore suggests management sees it as temporary. Still, the margin squeeze from 22.6% to 18.2% is worrying.
Yaar, Bata shoes are decent but maybe they need to focus more on affordable range. Footwear business is competitive with local brands. Profit drop reflects tough times.
Smart move to maintain dividend even after profit slump. Keeps investor trust. But the board should analyze why EBIT dropped 15% despite revenue growth.
Dividend reduced from Rs 13.50 to Rs 9 over the years—sign of pressure. But Rs 2.2 crore profit is still early-stage recovery. Let's see if Q1 turns around. 🇮🇳
One-time loss is often used as an excuse for poor management. Hope Bata clarifies in AGM. The margin contraction needs attention—competition is tough in Indian footwear market.
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