Motilal Oswal has maintained a Neutral rating on Bata India with a target price of ₹645 in its research report dated August 13, 2026. According to the brokerage's analysis, the target price is set at 30x September 2028 estimated earnings per share.
Bata India delivered 4% revenue growth in the first quarter of FY27, while underlying profit before tax (PBT) grew 23% year-on-year. As reported by Motilal Oswal, the earnings improvement reflects better merchandise productivity and cost efficiency. The company's gross margin expanded 130 basis points, with an underlying improvement of approximately 230 basis points after adjusting for channel mix changes.
According to Motilal Oswal's research, better inventory quality and higher full-price sales are improving merchandise economics for Bata India. The brokerage noted that further upside potential exists from premiumization strategies and lower markdowns in the company's product portfolio.
The brokerage highlighted that potential demand recovery in the organized value-footwear segment following GST rationalization provides some downside support for the stock. Motilal Oswal has reiterated its Neutral stance on the company while maintaining the target price of ₹645.
