Indian Terrain Fashions Reports Strong Q2 Recovery with 17.6% Revenue Growth

Indian Terrain Fashions Limited , a leading player in the mid-premium men's casualwear segment, has reported a significant turnaround in its financial performance for the second quarter. The company's results showcase a robust recovery and improved profitability across key metrics.

Financial Highlights

Particulars (₹ in Crores)	Q2 FY'26	Q2 FY'25	YoY Change
Revenue from Operations	100.96	85.83	17.6%
Gross Margin	40.66	32.10	26.7%
Gross Margin (%)	40.3%	37.4%	290 bps
Operating EBITDA	8.50	(3.80)	-
EBITDA Margin (%)	8.4%	(4.4%)	1280 bps
Profit Before Tax (PBT)	1.14	(12.42)	-
PBT Margin (%)	1.1%	(14.5%)	1560 bps

The company reported a 17.6% year-on-year increase in net revenue, reaching ₹100.96 crores for the quarter. This growth was supported by festive-led demand, improved sell-through, and stronger primary sales.

Gross margin expanded to 40.3% from 37.4% in the previous year, driven by a sharper product mix, disciplined discounting, and sourcing efficiencies. The company achieved a significant turnaround in operating EBITDA, which stood at ₹8.50 crores (8.4% margin) compared to a negative ₹3.80 crores (-4.4% margin) in the same quarter last year.

Indian Terrain Fashions also reported a positive profit before tax of ₹1.14 crores (1.1% margin), a substantial improvement from a loss of ₹12.42 crores (-14.5% margin) in the previous year.

Operational Highlights

Multi-brand outlets (MBO) and online channels showed strong growth, with increases of ₹13 crores and ₹8 crores respectively year-on-year.
The company maintained stable working capital with inventory days reduced to 79 from 97 year-on-year.
Receivables and inventory remained stable, with Net Working Capital at ₹232 crores, ensuring a healthy liquidity position.

Management Commentary

Charath Narsimhan, MD & CEO of Indian Terrain, attributed the recovery to focused execution, improved primary sales, stronger festive momentum, and better sell-through across channels. He stated, "The second quarter has been a period of clear recovery and renewed momentum for Indian Terrain. Our focused execution delivered strong sequential revenue growth and a significant improvement in operating performance."

Outlook

The company expects a favorable consumption environment to continue, supported by festive and wedding demand. The recent GST reforms are anticipated to enhance affordability in the mid-premium segment, potentially sustaining growth momentum.

Indian Terrain aims to maintain EBITDA in high single digits over the next few quarters and move towards double-digit levels thereafter. The company's priorities remain focused on sustaining growth momentum, deepening brand relevance, and continuing operational excellence to build on this positive trajectory.

As Indian Terrain Fashions navigates through this recovery phase, the company's strategic focus on channel diversification, working-capital discipline, and operational efficiency positions it well for potential growth in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.67%	-6.69%	+2.70%	-2.77%	-23.23%	+12.89%

Indian Terrain , a prominent player in the apparel and accessories segment, has reported its financial results for the first quarter, showing a reduction in net loss despite flat revenue. The company has also announced key corporate updates, including the scheduling of its Annual General Meeting (AGM) and appointments of auditors.

Financial Performance

For the quarter ended June 30, Indian Terrain reported:

Revenue from operations remained relatively flat at ₹68.78 crore, compared to ₹68.36 crore in the same quarter of the previous year.
Net loss narrowed to ₹6.19 crore, a significant improvement from the ₹15.27 crore loss in the same quarter last year.
Total expenses decreased to ₹76.08 crore from ₹90.30 crore year-over-year, indicating improved cost management.

The company's financial results show the following key figures:

Particulars (₹ in Crore)	Current Quarter	Previous Year Quarter
Revenue from Operations	68.78	68.36
Total Income	70.04	69.39
Total Expenses	76.08	90.30
Net Profit/(Loss)	(6.19)	(15.27)

Corporate Updates

The Board of Directors, in their recent meeting, approved several important matters:

Annual General Meeting: The 16th AGM is scheduled for September 29, to be held virtually at 12 Noon IST.
Director Re-appointments:
- Mrs. Rama Rajagopal will seek re-appointment as a Non-Executive Non-Independent Director.
- Mrs. Nidhi Reddy is proposed for re-appointment as an Independent Director for a second five-year term.
Auditor Appointments:
- M/s. BP & Associates has been proposed as Secretarial Auditors for a five-year term, subject to shareholder approval.
- M/s. RVKS & Associates has been re-appointed as Internal Auditors for the current fiscal year.
Record Date: September 22 has been set as the record date for determining shareholder eligibility for AGM voting.
Share Capital Update: The company received the balance amount of ₹6.3 crore in April for the conversion of warrants into equity shares, which was completed on May 27.

Trading Approval

Indian Terrain has received trading approval from both the National Stock Exchange (NSE) and BSE Limited for 49,48,537 equity shares of ₹2 each, issued at ₹50.52 per share through preferential allotment. These shares will be available for trading from August 12.

The company continues to operate exclusively in the apparel and accessories segment, focusing on improving its financial performance and corporate governance practices.