Bata India Ltd (BATAINDIA) AI Stock Analysis

• Market Cap: ₹89.85B
• Dividend Yield: 0.95%
• Average Volume (3M): 13.00K
• Price to Earnings (P/E): 45.8
• Beta (1Y): 1.01
• Revenue Growth: -0.95%
• EPS Growth: -50.96%
• Country: IN
• Employees: 4,073
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 5.60
• Shares Outstanding: 128,527,540
• 10 Day Avg. Volume: 6,068
• 30 Day Avg. Volume: 13,004
• PEG Ratio: 1.84
• Price to Book (P/B): 10.05
• Price to Sales (P/S): 4.54
• P/FCF Ratio: 22.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹946.50
• Price Target Upside: -1.07% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 22.56
• Revenue Forecast (FY): ₹35.09B

• Rating: 56 Neutral
• Price Target: ₹755.00 ▼(-21.09% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is anchored by strong underlying financial performance, especially improving profitability and robust cash flow. However, the overall rating is pulled down by very weak technical indicators (price below key moving averages with negative MACD and deeply oversold RSI/Stoch) and a demanding valuation (high P/E with a modest dividend yield).

Positive Factors

Nationwide multi-channel distribution and brand strength

Bata India's broad retail footprint (company-owned + franchise) combined with e-commerce creates durable market access and customer reach. This multi-channel model supports consistent shelf presence, higher repeat purchase rates, scale in sourcing, and resilience to regional demand swings over months.

Robust free cash flow and strong cash conversion

Sustained free cash flow and high operating-cash-to-net-income conversion provide durable funding for capex, store investment, and debt servicing without dilutive financing. Strong cash generation underpins financial flexibility and supports long-term reinvestment and shareholder returns.

Improved net profit margin and ROE

Material improvement in net margins and ROE reflects better cost management and profitable mix shifts. Higher margin sustainability increases retained earnings and reinvestment capacity, enabling longer-term competitive positioning and stronger returns to shareholders.

Negative Factors

Rising debt-to-equity ratio

An increasing leverage trend raises interest and refinancing risk and reduces financial flexibility. Over a multi-month horizon higher debt levels can constrain capex, limit strategic options, and elevate vulnerability to cost shocks or rate rises, pressuring cash flow.

Pressure on EBIT/EBITDA margins

Erosion in operating margins suggests rising input, logistics, or store operating costs, or greater promotional intensity. If persistent, margin pressure can offset gross-profit gains, weaken operating leverage, and reduce free cash generation and ability to fund growth.

Weak recent revenue growth metric in fundamentals

A notably negative revenue-growth reading indicates near-term top-line contraction or volatility. Sustained weak revenue undermines scale advantages, strains margin recovery, and limits ability to amortize fixed costs; a multi-month revival in demand is needed to restore traction.

Bata India Ltd Business Overview & Revenue Model

Company Description

Bata India Limited manufactures and trades in footwear and accessories through its retail and wholesale network in India and internationally. The company offers footwear for women, men, and kids; apparel; and accessories, such as belts, clutches, handbags, masks, and shoe care products. It sells its products primarily under the Bata, Disney, Footin, Hush Puppies, Bata Comfit, Marie Claire, Naturalizer, North Star, Power, Scholl, CAT, Weinbrenner, and Bubblegummers brands. The company operates through approximately 1,569 retail stores, including franchisee stores. It is also engaged in trading of apparel and footwear, and property letting. The company was formerly known as Bata Shoe Company Private Limited and changed its name to Bata India Limited in 1973. The company was incorporated in 1931 and is based in Gurugram, India. Bata India Limited is a subsidiary of Bata (BN) B.V.

How the Company Makes Money

Bata India Ltd generates revenue primarily through the sale of footwear and related accessories. Its revenue model includes both direct sales from its retail outlets and e-commerce platforms, allowing the company to reach a broader customer base. Key revenue streams include the sale of men's, women's, and children's shoes, with a focus on quality and affordability. The company benefits from brand loyalty and a strong distribution network, including franchisee partnerships that expand its market reach. Seasonal promotions and collaborations with popular brands or designers also contribute to increased sales. Additionally, Bata India leverages its long-standing reputation and customer trust to maintain a competitive edge in the footwear market.

Bata India Ltd Financial Statement Overview

Summary

Financials are solid overall: consistent revenue growth and meaningfully improved net profit margin support profitability, while cash generation is strong with robust free cash flow and good cash conversion. Key offset is balance-sheet risk from a rising debt-to-equity ratio and some recent pressure on EBIT/EBITDA margins.

Income Statement

Bata India Ltd has shown consistent revenue growth, with a notable increase in revenue from 2022 to 2025. The gross profit margin has remained strong, though there is a slight decline in the EBIT and EBITDA margins in the latest year, indicating some pressure on operational efficiency. Net profit margin has improved significantly over time, reflecting better cost management and profitability.

Balance Sheet

The company's balance sheet is stable with a healthy equity ratio, suggesting a strong capital base. However, the debt-to-equity ratio has increased over the years, indicating a growing reliance on debt financing. Return on equity has improved, showing effective utilization of shareholder funds.

Cash Flow

Bata India's cash flow analysis reveals robust free cash flow growth, particularly in the most recent year. The operating cash flow to net income ratio is strong, indicating good cash conversion from operations. The company has maintained a solid free cash flow to net income ratio, demonstrating effective cash management strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.50B	34.89B	34.79B	34.52B	23.88B	17.08B
Gross Profit	16.91B	19.52B	19.72B	19.24B	12.86B	8.58B
EBITDA	5.04B	4.58B	5.22B	5.59B	2.36B	-395.12M
Net Income	1.71B	3.31B	2.63B	3.23B	1.03B	-893.11M
Balance Sheet
Total Assets	36.91B	38.23B	33.50B	32.72B	35.25B	33.32B
Cash, Cash Equivalents and Short-Term Investments	5.66B	6.30B	4.04B	5.27B	9.67B	10.94B
Total Debt	24.12B	14.46B	13.57B	12.46B	10.94B	10.32B
Total Liabilities	21.67B	22.48B	18.23B	18.33B	17.10B	15.74B
Stockholders Equity	15.25B	15.75B	15.27B	14.38B	18.15B	17.58B
Cash Flow
Free Cash Flow	2.40B	7.02B	3.52B	5.33B	1.63B	4.24B
Operating Cash Flow	2.65B	7.75B	4.53B	6.29B	2.12B	4.61B
Investing Cash Flow	-1.32B	150.94M	403.55M	4.39B	928.03M	-526.80M
Financing Cash Flow	-3.29B	-6.37B	-5.18B	-10.11B	-3.41B	-3.69B

Bata India Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 956.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BATAINDIA, the sentiment is Negative. The current price of 956.75 is above the 20-day moving average (MA) of 777.21, above the 50-day MA of 847.93, and below the 200-day MA of 1064.59, indicating a bearish trend. The MACD of -42.77 indicates Positive momentum. The RSI at 18.85 is Positive, neither overbought nor oversold. The STOCH value of 6.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BATAINDIA.

Bata India Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SREEL	67 Neutral	₹4.48B	16.67	―	―	6.38%	1.63%
MIRZAINT	62 Neutral	₹4.26B	-17.45	―	―	-15.05%	-18.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BATAINDIA	56 Neutral	₹89.85B	45.84	―	0.95%	-0.95%	-50.96%
RELAXO	56 Neutral	₹73.39B	94.83	―	0.75%	-8.39%	-3.74%
KHADIM	53 Neutral	₹1.86B	-490.53	―	―	-26.54%	-21.93%
LIBERTSHOE	52 Neutral	₹4.44B	200.89	―	―	―	―

Bata India Ltd Corporate Events

Bata India Completes VRS at Hosur Unit With Rs 280.6 Million Financial Impact

Bata India Ltd has fully implemented a Voluntary Retirement Scheme (VRS) at its Bata Shatak Unit in Hosur, completing a workforce rationalisation initiative previously intimated to the stock exchanges. The scheme will result in a one-time financial impact of Rs 280.6 million, signalling a cost restructuring move that may support operational efficiency and margin improvement over the medium term, with implications for the company’s cost base and workforce structure at the Hosur facility.

Bata India Faces GST Demand Order, Sees No Material Financial Impact

Bata India Ltd has disclosed that the Office of the Commercial Tax Officer, Chandigarh, has issued a demand and assessment order under the CGST Act for the financial year 2021-22, citing ineligible input tax credit claims and insufficient supporting documentation. The order imposes a penalty of Rs 23.95 lakh in addition to tax and interest, though the company maintains it has a strong case to contest the matter before the appropriate authorities and does not expect any material financial impact on its operations or overall financial position.