Shares of iconic footwear retailer Bata India have extended their sharp decline, hitting a multi-year low as persistent growth challenges continue to erode investor confidence and market value.
Stock in a Prolonged Slump
In trading on December 02, Bata India's stock price fell over 1% to touch an intraday low of ₹963.30. This marks the stock's weakest trading level since November 2018. The decline is part of a sustained bearish trend that began in August 2024, with the stock closing in negative territory for 13 of the past 16 months. This period has seen the stock lose a cumulative 40% of its value, representing one of its most prolonged downturns in recent history.
The selling pressure has been relentless since the stock reached its all-time high of ₹2,262 in November 2021. From that peak, the company has now wiped out a staggering 58% of its market capitalization. The current trajectory puts the stock on course for its weakest annual performance in 16 years, having already declined 30% in the 2025 calendar year so far.
Historical data from Trendlyne shows the last comparable crash occurred in 2008 when the stock tumbled 63%. The current correction has significantly dented shareholder wealth and pulled the company's market capitalization down to approximately ₹12,400 crore.
Weak Quarterly Results Fuel the Decline
The immediate trigger for the intensified sell-off was the company's disappointing performance in the second quarter of the fiscal year 2025-26 (Q2FY26). Bata India reported a 4% year-on-year decline in revenue to ₹801 crore. This figure represents its worst top-line performance in the past ten quarters and fell below market expectations.
Management attributed the revenue weakness to two primary factors. First, channel partners and customers deferred purchases in anticipation of the GST rate rationalisation announced by the government. Second, a disruption at one of the company's largest warehouses in July 2025 temporarily impacted business operations.
Profitability metrics also deteriorated sharply:
- Gross Margin: Fell for the third consecutive quarter, declining 122 basis points YoY to 55.4%, pressured by increased pre-festive markdowns and higher marketing spends.
- EBITDA: Dropped 17% YoY to ₹145 crore, with margins contracting 280 basis points to 18.1%.
- Net Profit: Consolidated net profit plummeted 73.26% YoY to ₹13.9 crore, marking the third straight quarter of contraction. Profit was also impacted by a one-off expense related to a voluntary retirement scheme at a factory.
Glimmers of Hope and Future Challenges
Despite the bleak quarterly numbers, the company pointed to some signs of a potential recovery. Bata India indicated that while the transition to GST 2.0 muted demand during Q2, sales momentum has shown improvement since September 22, 2025, when the new GST rates became effective.
The company also highlighted growth in its premium brand portfolio, including Hush Puppies and Power. Furthermore, its zero-base merchandising initiative, aimed at boosting efficiency and enhancing customer experience, has now been expanded to 200 stores.
Moving forward, investors will closely monitor whether these strategic efforts can successfully revive growth in the face of intense competition. The company's performance in the more affordable, lower-priced product categories will remain a key area to watch for signs of a broader market recovery.
