Tata Group retail company Trent reported strong overall growth in the financial year 2026 (FY26), driven by continued expansion of its value-fashion formats such as Zudio and Westside, even as Zara India saw a decline in revenue and profitability during the year.
According to Trent's FY26 annual report, Inditex Trent Retail India (ITRIPL), the joint venture between Trent and Spanish fashion giant Inditex that operates Zara and Massimo Dutti stores in India, posted a 31.9% decline in the net profit for FY26.
Net profit fell to Rs 204.14 crore from Rs 299.84 crore in the previous year, while revenue from operations slipped 1.1% to Rs 2,749.28 crore from Rs 2,782.06 crore a year earlier. Total income also declined to Rs 2,767.75 crore during the year.
The softer performance marks a moderation for Zara India after several years of post-pandemic recovery and growth. Zara had previously benefited from strong demand in premium urban fashion retail as consumers returned to malls and discretionary spending rebounded after Covid disruptions.
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.
The softer year for the Inditex-Trent partnership came even as Trent's broader retail business continued to expand rapidly. The company reported consolidated revenue from operations of nearly Rs 19,701 crore in FY26, up 18.2% year-on-year, while profit after tax rose to around Rs 2,535 crore.
Trent also 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.
In his message to shareholders, Trent Chairman Noel N. Tata said the company remains focused on building “a strong portfolio of brands and retail concepts” catering to different customer segments and evolving consumer aspirations in India.
He added that Trent continues to see “significant headroom for growth” in India's organised retail market and remains focused on strengthening customer propositions while expanding reach across geographies.
The annual report repeatedly highlighted Zudio as one of the company's key growth engines. Trent said the brand's combination of accessible pricing, trend-led merchandise and rapid inventory refresh cycles continues to resonate strongly with consumers.
Over the past few years, Zudio has emerged as one of the largest contributors to Trent's store expansion strategy and a major driver of the company's revenue growth. Its value-fashion positioning has helped Trent deepen penetration across a much wider consumer base.
The contrasting performance between Zara India and Zudio reflects the broad range of consumer segments Trent now caters to. While Zara and Massimo Dutti strengthen Trent's premium fashion portfolio in major urban centres, Zudio and Westside continue to drive scale and mass-market growth.
The annual report suggests Trent is increasingly benefiting from a diversified retail portfolio spanning premium and value fashion categories as organised retail penetration continues to rise across India.
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