Zara India Sees Profit Drop by 32% in FY26 Amid Revenue Decline

Zara's Indian operations witnessed a 32% downfall in profit to Rs 204 crore for FY26, with a slight decrease in revenue. The joint venture between Inditex and Trent Ltd reported reductions in stake holdings and competitive challenges in the market.

Zara's Indian business reported a 31.9% drop in profit to Rs 204.14 crore for the fiscal year 2026, as its revenue fell by 1.1% to Rs 2,749.28 crore, according to the latest financial disclosures from Trent Ltd.

In fiscal year 2025, Zara India showed a stronger financial performance, with a profit of Rs 299.84 crore and revenues of Rs 2,782.06 crore. The brand operates under Inditex Trent Retail India Private Ltd (ITRIPL), a partnership between Inditex and Tata Group's Trent Ltd.

Currently, Zara operates 22 stores throughout India, facing market competition from brands like H&M and UNIQLO. During FY26, Trent Ltd reduced its stake in ITRIPL through a share buyback, now holding a 20% interest. This strategic adjustment reflects changes in business dynamics and market positioning.

The Inditex-Trent partnership also extends to Massimo Dutti, with increased revenue of 27.97% to Rs 128.45 crore in FY25. While Massimo Dutti operates three stores in India, it also shares a 20% Trent stake similar to ITRIPL, with merchandise sourced solely from the Inditex Group.

The Inditex Group, headquartered in Spain, grants permissions for its brand operations in India, retaining control over product selections. Zara’s performance signifies the challenge of maintaining market share amidst growing international competition.