Zara's India FY25 sales flat at Rs 2,782.06 cr, profit up 23% to Rs 299.47 cr

New Delhi: Global fashion brand Zara reported nearly flat growth in its India sales for FY25, with revenue from operations rising marginally by 0.5 per cent to Rs 2,782.06 crore, while its profit increased nearly 23 per cent to Rs 299.47 crore, according to the latest annual report of Trent Ltd.

Inditex Trent Retail India Private Ltd (ITRIPL), the joint venture (JV) which operates Zara-branded stores in India, had reported a revenue from operations at Rs 2,768.90 crore and a profit of Rs 243.84 crore in FY24.

ITRIPL is a JV between Spain's Inditex, which owns luxury fashion brand Zara and Tata Group's retail arm Trent Ltd. Its total income, which includes other income, was up 2.26 per cent to Rs 2,839.50 crore for the financial year ended on March 31, 2025.

Zara, which competes with the likes of other foreign brands such as H&M and UNIQLO in India, currently operates 22 stores across 13 cities.

A year before, the entity for Zara was operating 23 stores across 12 cities.

Addressing the shareholders, Trent Managing Director P Venkatesalu said FY25 was again a relatively challenging year for retail in India.

"Consumers faced multiple headwinds, including elevated inflation levels that impacted discretionary spends. FY25 was again a relatively challenging year for retail in India. Consumers faced multiple headwinds, including elevated inflation levels that impacted discretionary spends," he said.

In FY25, Trent offloaded its stake in ITRIPL in the buyback offer made by ITRIPL.

"Consequent to the acceptance of the offer by ITRIPL, the Company holds 34.94 per cent of the equity shareholding (earlier 49 per cent) in ITRIPL w.e.f. 30th August 2024," it said.

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

Its revenue was also marginally down 0.7 per cent to Rs 100.37 crore in FY25, as against Rs 101.09 crore in FY24.

Like ITRIPL, Trent had sold 29 per cent of its shareholding in MDIPL in March 2025, reducing the Tata group firm's shareholding in MDIPL to 20 per cent.

"The entities essentially facilitate distribution of Zara and Massimo Dutti products in India through their respective stores," it said.

The business of both entities is essentially limited to the distribution of Zara and Massimo Dutti products in India.

Both entities are required to source merchandise only from the Inditex Group.

"Also, the choice of product and related specifications are at the latter'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.