Struggling with nearly flat sales and a stock at a 52-week low, Bata India is pushing a “digital-first” reset to drive momentum. Revenue grew just 3% year-on-year in Q3 FY26, while nine-month sales are almost stagnant, lagging behind rivals such as Metro Brands and Campus Activewear, which report double-digit gains.
In an exclusive interview with Mint, Gunjan Shah, chief executive officer (CEO) and managing director (MD) of Bata India, said the company aims to derive about 25% of its total revenue from digital platforms in the next three years.
“In the next 2-3 years it should be anywhere between 20 to 25% of our business,” Shah said, adding that appealing to a younger customer base is among the company’s top priorities.
While the company is planning the reset, investors are waiting to see results. Shares of Bata India opened at ₹733.95 on NSE on 5 March, down 21.4% since January, compared with a 5.6% dip in the Nifty. As of 3 March, 11 of 19 analysts tracking the company have sell calls, according to Bloomberg.
Digital currently contributes about 14-15% of revenue, up sharply from below 5% five years ago.
“It [digital sales] has been the fastest growing engine and will remain the fastest growing engine driving growth,” Shah said.
Youth repositioning
As the 130-year-old brand works to stay relevant, it is targeting millennials and Gen-Z shoppers through influencer-led campaigns and a stronger push into casual footwear, particularly sneakers.
Shah said Bata’s core consumer is around 25 years old, plus or minus five years, but the company is also positioning itself to attract the next wave of Gen-Z buyers entering the market.
To do this, the company has sharply shifted its marketing strategy toward digital platforms and influencers.
“Our eyeballs have suddenly moved digital. So our media spends are now almost 80-90% digital,” Shah said.
Bata has partnered with actor Sanjana Sanghi for its Ballerina line and influencer Kusha Kapila for its “Make Your Way” campaign.
Growth gap
Bata’s sluggish growth stands in sharp contrast to rivals.
Metro Brands Ltd grew 9-15% in the first three quarters of FY26, while Campus Activewear reported 14-16% growth in the second and third quarters.
Campus has also built a strong online presence, generating more than 40% of its ₹588.61 crore Q3 FY26 revenue from digital platforms.
Bata’s Q3 marketing spend grew by “close to double digit” year-on-year.
The company has also experimented with newer channels, including quick commerce. It collaborated with Zepto in December 2024, following Paragon Footwear’s entry into quick commerce platforms. Blinkit has a dedicated Bata brand page, though it largely sells digital gift vouchers. Bata products are also available on Swiggy Instamart.
The company launched its direct-to-consumer (D2C) app in 2023, which now drives 14% of its sales.
Other competitors such as Crocs, Relaxo and Paragon are also leaning into the quick commerce strategy while marketing spends in the sector are soaring. Campus Activewear spent ₹132 crore on advertising in FY25 up 25% from the year ago on advertising, while Bata spent ₹82 crore in the same period, down 10% year-on-year.
Bata is also reshaping its portfolio.
“Our portfolio has significantly moved towards casuals and within that also sneakers,” Shah said. “And our contribution from casual is almost 60%, which was less than 40% till pre-Covid.”
Younger brands such as Campus have benefited from the casualization trend, particularly among Gen-Z shoppers who buy online and prefer sneakers across occasions.
Premium play
Bata is simultaneously moving upmarket. It holds the exclusive license to manufacture and retail Hush Puppies in several countries including India. The brand has over 160 stores, and Shah plans to expand it to 200.
“Hush Puppies which is at the super premium end right for ₹5,000 average selling price (ASP),” Shah said.
The ₹5,000-20,000 price band is increasingly competitive. Crocs has a strong presence through its partnership with Metro Brands. However, Crocs India Pvt Ltd reported a nearly 7% drop in sales to ₹558 crore in FY25.
Birkenstock India posted ₹226 crore revenue in FY25 and has grown nearly 10x in five years.
The standard clogs by Crocs range between ₹3,000- ₹5,500 in India. The classic suede sandals by Birkenstock range from ₹8,000.
But analysts warn that premiumization carries risks.
“The risk is that premiumization narrows Bata's addressable market,” said analysts at Sunrise Gilt Securities Pvt Ltd. “As the company moves upmarket, it potentially vacates the mid-market to regional players, unorganized sector competitors and private label offerings from apparel retailers,” they added.
Asset light shift
Bata is also restructuring operations.
“We have been closing down inefficient factories. We have shut down two already,” Shah said. “In-house manufacturing was about 30-35% of our business until about 4-5 years back. Now it is about 15%,” he added.
Competitors such as Metro Brands operate asset-light models, licensing and marketing brands rather than owning factories. Department store chains focus on design and retail rather than manufacturing. In 2023, Reliance Retail acquired Centro, which also did not operate manufacturing facilities.
Shah says competition is forcing faster adaptation.
“They are far more agile and that is pushing us to become much more agile,” he said.
Bata has implemented zero-based merchandising, where each season’s inventory starts from scratch.
“Anywhere between 30-50% of the stock will be new in a six month period,” he said.
“The direction of Bata's transformation is correct—premiumization, franchise expansion, digital investment—but the pace is slow, the competition is accelerating, and one quarter of profitability after several quarters of decline is insufficient to restore market confidence," said analysts at Sunrise Gilt Securities Pvt Ltd.