Bata India share price sinks to 7-year low as sell-off deepens; on track for biggest yearly drop in 16 years

The sell-off in footwear maker Bata India has intensified, with shares continuing to grind lower and slipping to multi-year lows as investor sentiment remains weak amid the company’s growth challenges, which continue to weigh heavily on its performance. In today’s session, December 02, the stock fell over 1% to hit a low of ₹963.30, its weakest level since November 2018. The counter has been on a steady decline since August 2024, ending 13 out of the past 16 months in the red and losing a cumulative 40%, marking one of its most prolonged slumps. The stock has been under persistent selling pressure since hitting a record high of ₹2,262 in November 2021 and has since erased 58% of its value. It is also set to log its weakest annual performance in 16 years, having fallen 30% so far in 2025. The last time the stock witnessed a comparable crash was in 2008, when it tumbled 63%, data from Trendlyne showed. Even in the previous calendar year, it declined 17%. The sharp correction has not only dented shareholder wealth but has also dragged the company’s market capitalization down to ₹12,400 crore. Weak Q2 numbers accelerate the sell-off The company delivered another weak quarter in Q2FY26, with revenue falling 4% YoY to ₹801 crore, marking its worst performance in the past ten quarters and coming in below Street estimates. The top-line growth was impacted due to deferred purchases by channel partners and customers following the announcement of GST rate rationalisation. Additionally, a disruption at one of the company’s largest warehouses in July 2025 had a temporary impact on business. Profitability was also under strain. Gross margin fell for the third straight quarter, declining 122 basis points year-on-year to 55.4%, as increased pre-festive markdowns and higher marketing expenses weighed on earnings. EBITDA dropped 17% YoY to ₹145 crore, with margins contracting 280 basis points to 18.1%. On the bottom line, the company reported a 73.26% YoY decline in consolidated net profit to ₹13.9 crore, marking its third straight quarterly contraction. Profit was also impacted by a one-off voluntary retirement scheme expense at a factory. There are, however, signs of improvement. Bata said that while the GST 2.0 transition muted demand in Q2, sales momentum has picked up since 22 September, when the new GST rates took effect. Additionally, its premium brands, including Hush Puppies and Power, are witnessing strong growth, and its zero-base merchandising initiative, aimed at improving efficiency and customer experience, has now expanded to 200 stores. Investors will be watching to see whether these efforts can meaningfully revive growth amid intensifying competition. Performance in lower-priced product categories will also remain a key monitorable. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.