Inditex Trent Retail India, the retailer’s joint venture with Tata Group’s Trent that operates Zara stores in India, reported revenue of Rs2,749 crore in FY26, down 1.2% from Rs2,782 crore a year earlier, according to Trent’s annual report. The decline follows revenue growth of less than 1% in FY25 and 8% in FY24.
The venture operates 22 Zara stores in India. Trent owns a 20% stake in the business, while Inditex holds the remaining share and controls merchandise sourcing, product selection and brand usage.
The retailer, in its annual report, said it remains confident of sustaining growth through the expansion of its fashion chains, investments in artificial intelligence and deeper penetration into smaller cities, as Chairman Noel Tata reiterated his ambition of building a global portfolio of Indian brands.
“I have long believed that Trent is not intended to be defined by a single brand, but rather by a portfolio of brands,” Tata said. “In a diverse and evolving market like India as well as globally, it is unlikely that any one brand can capture a dominant share of the lifestyle space.”
The retailer has increasingly leaned on Zudio, its value-fashion chain, to drive growth as consumers seek affordable fashion amid an uncertain economic backdrop. At the same time, the company has built an integrated ecosystem spanning design, sourcing, supply chain and retail operations.
“We have also worked towards building an integrated ecosystem — across design, sourcing, supply chain, and retail execution — to ensure that each of our brands delivers a differentiated and compelling customer experience,” Tata said.Tata also reiterated an ambitious growth target first outlined to shareholders in 2023.
“In our 2023 shareholders meeting, I had envisioned Trent to be ten times bigger in terms of revenues with commensurate profitability,” he said. “Since then, the revenue and profitability run rate has grown by over 2.5 times. Given all this, I am confident that we will reach the milestone I had referenced in the not-so-distant future.”
Zara has been one of the most successful international fashion brands in India since entering the market more than a decade ago. After initially doubling sales roughly every two years, however, the pace of growth has slowed in recent years as global rivals and new-age fashion retailers compete aggressively for consumers.
Zara’s total profit also fell 32% to Rs204 crore in FY26 from Rs299 crore a year earlier.
Meanwhile, Massimo Dutti India, another Inditex-Trent joint venture, posted stronger growth, with revenue rising 28% to Rs128 crore from Rs100 crore a year earlier.
Trent, which owns a 20% stake in both ventures, said the businesses remain dependent on Spain’s Inditex group for merchandise sourcing, product selection and brand usage rights, and therefore should be viewed primarily as financial investments rather than strategic retail assets.
Trent, the Tata Group retailer that operates Westside and Zudio stores, reported an 18.2% increase in revenue from operations to Rs19,701 crore in FY26, according to its annual report. The company generated operating EBIT of Rs2,341 crore and expanded its store network to 1,286 outlets, including six in the UAE.
Managing Director P Venkatesalu said Trent continues to see strong opportunities in India’s fashion market, particularly in Tier-II and Tier-III cities, where rising aspirations and demand for branded merchandise are supporting the growth of organised retail.
The retailer also highlighted increasing competition in India’s apparel market, where global brands, digital-first fashion companies and well-funded startups are competing for consumer spending. Even so, management said the company remains confident about long-term growth prospects as rising incomes, urbanisation and the expansion of organised retail continue to support demand for fashion and lifestyle products.