Indian Terrain Fashions Limited , a leading player in the mid-premium men's casualwear segment, has unveiled an ambitious growth strategy aimed at achieving double-digit revenue growth through omni-channel operations and expansion into tier-2 cities. The company plans to expand its retail network to over 300 stores by FY27, while simultaneously strengthening its digital and franchise operations.

Expansion Strategy

The company's growth plan focuses on:

1. Expanding the retail network to over 300 stores by FY27
2. Strengthening digital and franchise operations
3. Focusing on casualwear and athleisure segments
4. Enhancing supply chain efficiency and inventory turnover to support margin expansion

Q2 Financial Performance

Indian Terrain has also reported its financial results for the second quarter, showing signs of recovery and improved profitability:

Key Highlights

• Revenue Growth: Net revenues grew by 17.6% year-on-year, supported by festive-led demand, improved sell-through, and stronger primary sales.
• Margin Expansion: Gross margin improved to 40.3% (vs 37.4% YoY), driven by a sharper product mix, disciplined discounting, and sourcing efficiencies.
• EBITDA Turnaround: Operating EBITDA stood at ₹8.5 crore (8.4% margin), reflecting early operating leverage and the impact of tighter cost control.
• Channel Performance:
  • MBO (Multi-Brand Outlets) recorded a strong turnaround with improved secondary offtake and higher partner engagement.
  • EBO (Exclusive Brand Outlets) & EFO (Exclusive Factory Outlets) delivered stable performance with improved store productivity.
  • Online business transitioned to an outright model with Flipkart, improving profitability and driving growth since August 2025.

Management Commentary

Charath Narsimhan, MD & CEO of Indian Terrain, commented on the Q2 results: "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. The sustained improvement in gross margins and a positive EBITDA reflect the early benefits of cost discipline and a sharper product and channel mix."

Outlook

Looking ahead, Indian Terrain expects:

• A favorable consumption environment to continue, supported by festive and wedding demand.
• GST-led affordability to sustain mid-premium apparel growth momentum.
• New launches in casual and smart-casual lines to gain traction among younger consumers.
• Continued channel diversification and working-capital discipline to support profitable scale-up.

The company aims to maintain EBITDA in high single digits over the next few quarters and move towards double-digit levels thereafter.

As Indian Terrain implements its expansion strategy and capitalizes on the recovering market conditions, investors and industry observers will be closely watching the company's progress in achieving its growth targets and sustaining its financial turnaround.

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

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.