Key Highlights
- Zara India’s FY26 profit declined 31.9% to ₹204.14 crore.
- Revenue from operations slipped 1.1% to ₹2,749.28 crore.
- Total income fell to ₹2,767.75 crore from ₹2,839.50 crore.
- Zara currently operates 22 stores across India.
- Trent reduced its stake in Zara India to 20% after a buyback.
- Zara India is operated through a joint venture between Inditex and Trent.
- Massimo Dutti India reported 28% revenue growth and 13.9% profit growth.
- Competition remains intense from H&M, UNIQLO and other global brands.
- Premium fashion demand remains resilient but growth has moderated.
- Inditex continues to control product sourcing and brand licensing.
Global fashion retailer Zara reported a sharp decline in its India business performance during FY2025-26, with net profit falling nearly 32% year-on-year to ₹204.14 crore. Revenue from operations also witnessed a marginal decline of 1.1% to ₹2,749.28 crore, reflecting softer growth in the premium fashion segment amid evolving consumer spending patterns.
According to the latest annual report of Trent Limited, Zara’s India operations are managed through Inditex Trent Retail India Private Limited (ITRIPL), a joint venture between Spain-based Inditex and Trent. The company had reported a profit of ₹299.84 crore and revenue of ₹2,782.06 crore in FY2024-25, indicating a notable moderation in earnings during the latest fiscal year.
A significant development during FY26 was Trent’s reduction in its shareholding in the Zara India venture following a buyback offer by ITRIPL. After participating in the buyback, Trent’s stake in the company now stands at 20%. Despite the weaker financial performance, Zara continues to maintain a strong retail footprint in India with 22 stores across major cities, competing with international fashion brands such as H&M and UNIQLO.
In contrast, Massimo Dutti India Private Limited, another joint venture between Inditex and Trent, delivered strong growth during the year. Revenue increased nearly 28% to ₹128.45 crore, while net profit rose 13.9% to ₹11.66 crore. The company currently operates three Massimo Dutti stores in India and continues to benefit from growing demand in the premium fashion category.
Industry observers note that while Zara remains one of India’s most recognised international fashion brands, changing consumer preferences, increasing competition, and slower discretionary spending may have impacted growth during FY26. Going forward, expansion strategies, new collections, and omnichannel retail initiatives will remain key drivers for the brand’s performance in the Indian market.
