Global fashion brand Zara's India operations experienced a significant decline in profitability during FY26, with profit falling 31.9% to ₹204.14 crore compared to the previous financial year. According to the latest annual report of Trent Ltd, the company's revenue from operations also declined 1.1% to ₹2,749.28 crore, indicating broader challenges in the Indian fashion retail market. The performance reflects the competitive pressures facing international fashion brands operating in India's evolving retail landscape, marking a moderation for Zara India after several years of post-pandemic recovery and growth. Zara, which competes with foreign brands like H&M and UNIQLO in India, currently operates 22 stores across the country.
The current financial year's results represent a significant decline from Zara's India operations in FY25, when the brand reported profit of ₹299.84 crore and revenue of ₹2,782.06 crore from operations. As reported by Trent Ltd, the company's total income decreased to ₹2,767.75 crore in FY26 from ₹2,839.50 crore in the previous year, highlighting the challenging operating environment for international fashion retailers in the Indian market. Zara, which competes with foreign brands like H&M and UNIQLO in India, currently operates 22 stores across the country. The softer performance marks a moderation for Zara India after several years of post-pandemic recovery and growth, when the brand had previously benefited from strong demand in premium urban fashion retail as consumers returned to malls and discretionary spending rebounded after Covid disruptions.
During FY26, Trent Ltd reduced its stake in Inditex Trent Retail India Private Ltd (ITRIPL), which operates the Zara brand in India, through a buyback offer. According to Trent's annual report, the company participated in the buyback offer and tendered 94,900 equity shares, resulting in its shareholding in ITRIPL standing at 20%. This ownership restructuring comes as Zara competes with foreign brands like H&M and UNIQLO in the Indian market, currently operating 22 stores across the country. ITRIPL operates Zara stores across major Indian cities along with the premium fashion brand Massimo Dutti, though Zara remains the larger contributor within the joint venture's portfolio.
Despite Zara India's challenges, Trent's broader retail business continued to expand rapidly during FY26. The company reported consolidated revenue from operations of nearly ₹19,701 crore, up 18.2% year-on-year, while profit after tax rose to around ₹2,535 crore. Trent expanded its overall store network to 1,286 stores during the year, with much of the growth driven by Zudio, its affordable fashion chain that has rapidly scaled across metros, tier-2 cities and smaller towns. The annual report repeatedly highlighted Zudio as one of the company's key growth engines, with its value-fashion positioning helping Trent deepen penetration across a much wider consumer base. Zudio's combination of accessible pricing, trend-led merchandise and rapid inventory refresh cycles continues to resonate strongly with consumers, emerging as one of the largest contributors to Trent's store expansion strategy.
