Bhattacharya and Kohn have used small-strain (geometrically linear) elasticity to analyze the recoverable strains of shape-memory polycrystals. The adequacy of small-strain theory is open to question, however, since some shape-memory materials recover as much as 10 percent strain. This paper provides the first progress toward an analogous geometrically nonlinear theory. We consider a model problem, involving polycrystals made from a two-variant elastic material in two space dimensions. The linear theory...