Inditex, owner of the Zara fashion brand, reported its weakest performance in India since the pandemic, as intensifying competition in the country’s rapidly expanding apparel market weighed on growth.
Inditex Trent Retail India, the joint venture between Inditex and Trent Limited that operates Zara stores in India, recorded revenue of Rs. 2,749 crore (US $289 million) in FY ’26, down 1.2% from Rs. 2,782 crore (US $292 million) in the previous financial year, according to Trent’s annual report. The decline follows marginal growth of less than 1% in FY ’25 and an 8% increase in FY ’24.
The venture’s profit fell sharply during the year, declining 32% to Rs 204 crore (US $21.47 million) in FY ’26 from Rs. 299 crore (US $31.47 million) in FY ’25.
The venture currently operates 22 Zara stores across India. Trent holds a 20% stake in the business, while Inditex owns the remaining share and retains control over merchandise sourcing, product selection and brand usage.
Despite the slowdown in its Zara business, Trent said it remained confident about its long-term growth prospects through the expansion of its fashion retail chains, investments in artificial intelligence and deeper penetration into smaller cities.
Zara has been among the most successful international fashion brands in India since entering the market more than a decade ago. However, after years of rapid expansion, growth has slowed as global competitors, digital-first fashion retailers and emerging brands intensify their efforts to capture market share.
In contrast, Massimo Dutti India, another joint venture between Inditex and Trent, delivered stronger growth. Revenue increased 28% to Rs 128 crore (US $13.47 million) during FY ’26, compared with Rs 100 crore (US $10.52 million) a year earlier.
Trent noted that both Inditex joint ventures remain dependent on the Spanish retailer for merchandise sourcing, product selection and brand usage rights, and therefore should be viewed primarily as financial investments rather than strategic retail assets.
The company also acknowledged increasing competition across India’s apparel market but maintained that rising incomes, urbanisation and the continued expansion of organised retail would underpin long-term demand for fashion and lifestyle products.
