Q1 2026 Bata India Ltd Earnings Call Transcript
Key Points
- Bata India Ltd (BOM:500043) has implemented Zero Base Merchandising (ZBM) in 200 stores, improving customer experience and operational efficiency.
- The company has introduced successful value propositions at key price points, resulting in increased checkout rates and plans to expand these initiatives across the network.
- Significant progress in the Floatz and Power product lines, with Floatz achieving over 30% growth and Power expanding its premium offerings.
- Hush Puppies brand continues to expand with 150 exclusive brand outlets, supported by successful marketing campaigns.
- Inventory management improvements have led to a 16% reduction in total inventory and a significant decrease in aged inventory, enhancing stock turns and availability.
- Overall revenue growth was flat at -0.3%, indicating challenges in achieving significant top-line growth despite various initiatives.
- Gross margins declined by 133 basis points, partly due to clearance of aged and discontinued inventory.
- The company faces challenges in driving growth in the lower price point segment, which is critical for revenue expansion.
- Store expansion has been slower than anticipated, with only 50 stores added in the last quarter under the ZBM initiative.
- The brand faces competition from emerging B2C brands and struggles to resonate with younger consumers, impacting market share.
Ladies and gentlemen, good day, and welcome to the Bata India Limited Q1 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Gaurav Jogani from JM Financials. Thank you, and over to you, sir.
Hello, everyone. On behalf of JM Financial, it's my pleasure to welcome you, all, to Bata's Q1 FY26 earnings conference call. Today, we have with us Mr. Gunjan Shah, Managing Director and Chief Executive Officer; Mr. Amit Aggarwal, CFO; and Mr. Nitin Bagaria, AVP and Company Secretary.
Thank you, and over to you, Nitin.
(technical difficulty) to all of you. We have Gunjan Shah, MD and CEO. We also have Amit Aggarwal, Director, Finance and CFO, joining us. We have shared the presentation with the stock exchanges earlier today. We will
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