Shares of Bata India Ltd rose 2.95% on Monday, August 18, to ₹1,080.70 as expectations grew that the upcoming GST reforms could benefit the footwear sector. Prime Minister Narendra Modi recently announced that next-generation GST reforms will be unveiled by Diwali, aimed at reducing the tax burden on consumers and MSMEs.
Brokerages have highlighted footwear as one of the key categories that may see relief under the proposed rationalisation. Goldman Sachs flagged Bata as a likely beneficiary, with footwear priced below ₹1,000 forming a significant portion of its product portfolio. If GST on these items is revised downward, it could enhance affordability and drive higher volumes during the festive season.
Jefferies and Citi also see potential GST cuts across consumer-facing categories such as apparel, footwear, processed foods, white goods, and insurance, along with big-ticket sectors like cement and automobiles. Analysts estimate that the household-focused policy stimulus—including GST cuts, income tax revisions, and lending rate reductions—could add up to 0.7–0.8% of GDP in FY26.
Bata India, one of the country’s largest footwear retailers, has been focusing on expanding its affordable and mid-market product lines, which would stand to gain from any tax relief. Following Monday’s gains, the company’s market capitalisation stood at ₹1.38 lakh crore.