Copyright © HT Digital Streams Limit all rights reserved. The Bata stocks need continuous volume and revenue growth to reign again, but this may not be realized soon. (Beeld: Bloomberg) Summary of Bata’s shares fell by 22% in 2025, weighed by sluggish sales, competitive pressure and expensive valuations, with analysts who remain careful despite margin gains. Bata India Ltd’s shares have a lot of underperforming the broader market, which has so far dropped 22.5% in 2025 at an almost 2% profit in the Nifty 500 index. According to Bloomberg data, the prospects for the secluded earnings are little convenient about valuations-the stocks are still trading at 53 times. The problem is not new. Bata has long struggled to increase sales growth amid the growing competition and the demand for consumers. The recently concluded in June quarter (Q1FY26) was no exception, with revenue slipping on an annual year -on -year to £ 942. It was the ninth quarter of Flat annual growth. Surprisingly, analysts have the expectations of the back. Motilal Oswal Financial Services cut its FY26-27 revenue and EBITDA forecasts 3-6% with reference to the persistent weakness in growth. “Strategic initiatives such as cleaning up stock, renovation of the compound products and the expansion of the franchise-led should increase the efficiency and help the margin recovery, although the competitive pressure remains in the short term,” the broker said in the Q1 judging report. Bata itself points to the lower price points – products below £ 1,000 – as an important pull. The challenges of the past quarter were emphasized by varying weather patterns and geopolitical uncertainties. The company has called out its zero-based trade project aimed at improving efficiency and improving customer experience at 194 stores. Premium brands such as Hush Puppies and Floatz were resilient. Floatz grew by 33% on the back of a 29% increase in volumes. Hush dogs are still expanding, supported by significant investments in refreshing shopping formats. The Premium Footwear Line now has about 150 exclusive brand stores and recently launched an Office Sneakers collection. Bata’s gross margin of the Q1 dropped 140 basis points (BPS) to 53.5% due to the clearance of an older stock. However, a decline in staff costs and other expenses meant that Ebitda margin rose 153 bps to 21.1%. Thus, EBITDA rose 7.5% year -on -year, which performed better than revenue growth. Yet it is not exciting enough. The stock needs sustained volume and revenue growth to judge again, but it may not be realized soon. “Challenges in the short term continue, with poor demand, mainly due to a significant part of the mass portfolio that is still under pressure,” said Axis Securities. Given this, the brokerage firm has cautious attitude and maintains its ‘hold’ rating on the stock. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Mark to Maket #Bata India Read Next Story
Bata India Stock struggles to regain its feet amid growth problems
