Zara's India FY26 Profit Falls 32% to ₹204 Cr; Revenue Slips

• Zara India profit declined 31.9% to ₹ 204.14 crore in FY26 while revenue from operations slipped 1.1% to ₹2,749.28 crore per Trent Ltd annual report

• ITRIPL, JV between Spain's Inditex and Tata's Trent Ltd operating 22 Zara stores, Trent reduced stake to 20% after tendering 94,900 shares in ITRIPL buyback

• Massimo Dutti India revenue rose 27.97% to ₹128.45 crore with net profit up 13.86% to ₹11.66 crore in FY26; both JVs source merchandise exclusively from Inditex Group dependent on brand permissions

Global fashion brand Zara's India profit declined 31.9% to ₹204.14 crore in FY26 and its revenue from operations slipped 1.1% to ₹2,749.28 crore, according to the latest annual report of Trent Ltd.

Zara stores in India reported a ₹299.84 crore profit and ₹2,782.06 crore revenue from operations in FY25, Inditex Trent Retail India Private Ltd (ITRIPL), which operates the Zara brand in India, said.

Its total income was ₹2,767.75 crore for the financial year ended March 31, compared to ₹2,839.50 crore a year ago.

ITRIPL is a JV between Spain's Inditex, which owns luxury fashion brand Zara, and Tata Group's retail arm Trent Ltd.

Zara, which competes with foreign brands like H&M and UNIQLO in India, currently operates 22 stores in the country.

In FY26, Trent reduced its stake in ITRIPL in a buyback offer by ITRIPL.

"During the year under review, the company participated in the buyback offer made by ITRIPL and tendered 94,900 equity shares. Pursuant to the acceptance of the said offer, the company’s shareholding in ITRIPL stands at 20%," it said.

Inditex group has another JV association with Trent, which operates Massimo Dutti stores in India. Massimo Dutti India Pvt Ltd (MDIPL) operates three stores in India.

Its revenue increased 27.97% to ₹128.45 crore in FY25 compared to ₹100.37 crore in FY24.

The net profit rose 13.86% to ₹11.66 crore for the financial year ended March 2026.

Like ITRIPL, Tata group retail firm Trent has a 20% stake in MDIPL.

ITRIPL and MDIPL source merchandise only from the Inditex Group, one of the world's largest fashion retail groups, headquartered in Arteixo, Galicia, Spain, whose portfolio consists of several well-known brands, such as Zara, Massimo Dutti, Pull&Bear, Bershka, and Stradivarius, a women's fashion brand.

Moreover, the choice of product and related specifications is Inditex's discretion. Further, the entities are dependent on the Inditex group for permissions to use the said brands in India, subject to its terms and specifications, according to the latest annual report of Trent.