Bata India Q2 Revenue Up 7.5% YoY, Targets Doubling by 2030

Revenue: Turnover of ₹8.6 million for Q2 FY27, recording 7.5% YoY growth
Growth Trajectory: Fourth consecutive quarter of positive growth
Profitability: Adjusted profit before tax grew by over 31% YoY
Cash Flow: Adjusted operating cash profit grew by over 9% versus previous year
Gross Margins: Improved by 8-10 basis points reported (70-80 basis points on similar channel mix)
Inventory Metrics: Stock turn higher than 2.6x, freshness in stores over 90%, aged inventory close to 5%

Footfall: Positive footfall growth despite market headwinds
Channels: Double-digit growth in franchisee and I&D (Institutional & Distribution) channels
E-commerce: Healthy growth pace despite deferment of orders from selected B2B partners
I&D Channel: Mid-teens growth with handsome growth in secondary sales
Advertising: Ad spends increased by over 4% on half-yearly basis, growth in overall reach and website hits
Product Availability: Increased 1.33x compared to last year
Store Clutter: Reduced to 0.71x compared to two years back

Mr. Sanjay Rao, Managing Director and CEO (joined recently), outlined three key focus areas:

1. Making stores and assortment more consumer-led to grow like-for-like growth

2. Bringing newer, more exciting products at better value

3. Growing through franchisees, e-commerce and youth-relevant products

Long-term Target: 'Reignite India 2030' ambition to double India turnover by 2030
Growth Rate: Targeting mid-single-digit to double-digit CAGR over next 4 years
Bottom Line: Targeting at least doubling of profits, potentially more to fund investments

Premiumization: Focus on premium brands like Floatz, Hush Puppies driving ASP growth
ASP Growth: 5-6% range, largely driven by premiumization rather than recent price hikes
Youth Focus: Acknowledged need to improve brand relevance with younger generation
Global Product Lines: New global product lines expected in H2 FY27 to improve youth appeal
Sneaker Contribution: Currently not as high as desired, emphasis on building this category

Franchise Expansion: Accelerating franchise store additions through organic and inorganic means
COCO Stores: Selective opportunistic openings (double-digit target for coming year)
Channel Mix Impact: Franchisee, e-com, and distribution businesses have lower gross margins but are profitable

Festive Calendar Shift: Durga Puja and Diwali shifted significant portion of festive buying from Q2 to Q3
Commodity Volatility: Continued raw material cost pressures
Currency Volatility: Exchange rate fluctuations impacting costs
Competitive Landscape: Acknowledged crowded field with both large and small competitors

Price Increase: 5-6% price hike taken in September to mitigate raw material inflation
Inventory Lag: Price impact will fully reflect in next quarter due to 5-6 months average inventory

Consumer Trust: 45 million consumers walk into stores annually, expect comfort, value, quality
Team Strength: Emphasis on having a team that "really wants to win"
Geographic Reach: Extensive reach that few brands can match in India
Global Support: Strong tailwind from global leadership team changes implemented in early 2025

Festive Season: Positive trends observed in October and early November footfalls
E-commerce Events: Expected to impact Q3 performance with lower ASP, higher volume products
Diwali Weekend: Positive trends observed leading up to mid-November