Bata India Q4 profit plunges 95% on VRS costs, forex losses

Footwear maker Bata India reported that its consolidated net profit fell 95.2% year-on-year. ₹2.2 crore in the March quarter (4FY26) suffered losses due to voluntary retirement scheme (VRS) charge and forex-related accounting loss.

Profit decreased by 96.6% respectively. Bata VRS bears cost ₹28 crore and non-cash forex loss ₹22.4 crore due to redetermination of financial liability for royalties due to currency fluctuation in the current quarter, according to a stock exchange filing on Wednesday.

In January, the company had approved a VRS option for workers at its Bata Shatak Unit in Hosur in Tamil Nadu. The company has implemented similar programs in its manufacturing units in recent years and has also closed some facilities.

Bata reported “volume-driven” revenue growth of 4.9% in the quarter. ₹827.6 crore. The company said this was “the second consecutive year that revenue growth accelerated, with March performance stronger than January, supported by sequential improvement in momentum.”

“We also continued to invest in demand generation, consumer engagement and brand traction; advertising spend grew 1.5 times,” Bata India managing director and CEO Gunjan Shah said in a press release.

growth focus

The company said its gross inventory decreased by 13%, demonstrating its inventory discipline. Its premium portfolio, led by brands such as Hush Puppies and Power, outpaced overall growth.

Management said in early March: Mint It was stated that the company aims to obtain approximately 25 percent of its total revenue from digital platforms in the next three years.

“It should account for 20 to 25% of our business in the next 2-3 years,” Shah said, adding that appealing to a younger customer base is among the company’s top priorities.

Bata India board recommends dividend ₹9 per share at the board meeting.

The company’s shares closed down more than 1 percent ₹It stood at 691 on the National Stock Exchange, while the benchmark Nifty50 closed slightly lower. The stock is down nearly 45% in the last year.