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Bata Steps Up Ad Spend by 25% as Premiumisation Drives Profit Growth

Bata Steps Up Ad Spend by 25% as Premiumisation Drives Profit Growth

Bata India posted a 23% year-on-year rise in profit after tax to ₹63.7 crore for the quarter ended June 30, 2026, marking its third consecutive quarter of accelerating growth, driven by premiumisation, higher average selling prices, and stronger consumer engagement.

Revenue rose around 4% to ₹978.9 crore, while profit before tax, excluding one-offs, climbed over 22% to ₹90.6 crore. Operating cash profit grew 7.6% to ₹216.6 crore, with an interim dividend of ₹25 per share declared.

Notably for the marketing industry, advertising investment rose nearly 25% year-on-year, according to MD and CEO Gunjan Shah, who linked the growth to premiumisation, volume expansion, and stronger consumer engagement.

Bata’s portfolio, spanning Red Label, Comfit, Power, NorthStar, Floatz, Bubblegummers, and Hush Puppies, sells close to 50 million pairs annually, serving over 250,000 customers daily.

Gross margin improved 130 basis points, backed by the highest full-price sales and lower markdowns, signalling stronger full-price acceptance over discounting. E-commerce also drove growth, alongside nearly 2,000 stores nationwide.

Inventory fell over 10% year-on-year, aided by the Zero Base Merchandising Project, now scaled to 775 stores. Despite freight cost pressures, Bata remains focused on premiumisation and digital expansion to sustain momentum.

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