Footwear major Bata India weathered a challenging July-September quarter (Q2FY26) impacted by the goods and services tax (GST) transition. But Managing Director and Chief Executive Officer Gunjan Shah believes the disruption is temporary.

Shah said the transition period leading up to the GST rate change led to deferred purchases from both trade partners and consumers. However, the company has since seen a good uptick. While the company repriced nearly 80% of its portfolio to pass on GST benefits to consumers, Shah confirmed the transition was margin-neutral.

The margin dip in Q2 was attributed to efforts to clear out inventory during the transition, and he expects this to normalise.

The company has now charted a multi-pronged strategy to drive growth. A key pillar is an aggressive store

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