New Research Reports

Bata India's (Bata) Q2FY26 result was below our estimates on key parameters. The management cited GST 2.0 transition caused significant and acute disruption during the quarter, impacting the overall top line. The period between the rate rationalization announcement and the effective date saw substantial consumer and channel partner deferral in buying. However, the company anticipates structural benefits from the GST reduction, especially aiding the lower price point segment (below Rs1,000) which has been under stress for the past two years. Further, there is a structural shift in consumer...

With a 7% downside from the CMP, we maintain our HOLD rating on the stock.

Metro Brands (MBL) delivered in-line 11% YoY revenue growth in 2Q, driven by an improvement in in-store sales (+10% YoY vs. 4% YoY in 1Q), acceleration in store additions, and robust 39% YoY online growth.

We reiterate BUY on Metro, while revising up our TP by ~14% to Rs1,475 (60x Sep-27E pre-IndAS EPS). The change in TP is led by near-equal contribution from upward revision of estimates and earnings rollover.

With a 3% downside from the CMP, we maintain our HOLD rating on the stock.

Bata India's (Bata) Q1FY26 result was in-line with our estimates on key parameters. Q1FY26 was relatively tough, showing only flattish growth, though it seemed slightly better than the previous quarter. There is still stress in the mass segment, particularly the middle and mass segments of the consumer base. Consumers in the target middle-class segment have experienced a pinch due to inflation, necessitating a focus on value for money in products. Further, there is a structural shift in consumer behaviour towards online platforms, leading to growth in e-commerce and direct-to-consumer (D2C) brands. The...

We cut FY26/FY27 EPS estimates by 1.9%/4.5% driven by 1) Higher store additions in a subdued demand environment, to likely increase overheads in the near term. We estimate margin contraction of 64bps/14bps in FY26/FY27 and 2) Weak store economics, driven by lower throughput/store amidst continued muted consumer sentiment. However, we believe operating parameters may improve in medium term only, led by 1) Stable store-level economics, aided by expansion into Tier-2 and Tier-3 cities. 2) Normalization of BIS-related issues in...

Metro Brands’ (MBL) 1QFY26 revenue grew 9% YoY on a low base (-1% YoY in 1QFY25), driven by a 45% growth in E-commerce and a modest ~4% YoY growth in in-store sales (on the back of ~8% YoY area additions).

Relaxo Footwears Ltd.'s (Relaxo) Q1FY26 result was below our estimates on key parameters. The company had yet another quarter of weak performance as sales volume declined. We believe there is no major uptick in demand environment post muted performance in Q4FY25 as well. The management's prudent cost cutting has been detrimental in operating margin improvement in Q1FY26. We believe Relaxo's earnings may remain under pressure in near term as sales volume may remain muted. However, the management is taking strategic steps such as the Retailer Parivar App, broadening the ecommerce...

With an 8% upside from the CMP, we maintain our HOLD rating on the stock.

Relaxo Footwears’ (RLXF) 1QFY26 results reflect persistent volume pressure amid restructuring of distribution, muted demand and heightened competition.

Leveraging its strong balance sheet and best-in-class retail pedigree, Metro is prudently plugging portfolio gaps and remains a platform of choice for thirdparty brands looking to enter India.

With a 1% downside from the CMP, we maintain our HOLD rating on the stock.

Bata India (BATA) delivered yet another weak quarter with 1% YoY revenue decline (5% miss) and ~230bp YoY gross margin contraction. The weak performance was attributed to the company’s deliberate shift toward valuedriven offerings to boost volume amid subdued demand.

Campus Activewear (Campus) delivered a healthy 12% YoY revenue growth, led by 8% increase in volumes and higher ASPs, supported by price hikes in open footwear and increased outright sales online.

We cut FY26/FY27 EPS estimates by 0.7/3.5%, factoring in lower other income due to Rs4bn one time dividend paid in 3Q25. Operating parameters are showing an improvement led by 1) better demand conditions, supported by a higher number of wedding days in 1H26. 2) Stable store-level economics, aided by expansion into Tier-2 and Tier-3 cities. 3) BIS-related issues are expected to fully normalize over the next 912 months and 4) peaked out losses in FILA and expected scale up in Foot Locker and FILA from 2H26. Metro Brands Ltd (MBL)'s growth plans remain on track led by 1) Entry into...

Relaxo Footwears (RLXF) reported another weak quarter with EBITDA declining 7% YoY (6% miss) as volume (-10% YoY) was impacted by overall muted demand and restructuring of its distribution model.

With a 2% downside from the CMP, we maintain our HOLD rating on the stock