Premium menswear brand Indian Terrain Fashions Ltd significantly reduced its net loss during the first quarter of FY27, aided by robust revenue growth, margin expansion and improved operational efficiency.
The company reported a net loss of ₹0.83 crore for the quarter ended June 30, 2026, compared with a loss of ₹6.20 crore in the corresponding quarter last year, an improvement of 86.6%. The company also returned to profitability at the pre-tax level, reporting a profit before tax (PBT) of ₹0.14 crore against a loss of ₹6.04 crore a year ago.
Revenue from operations rose 18.8% year-on-year to ₹81.74 crore from ₹68.78 crore, while EBITDA surged 233.5% to ₹7.57 crore. Gross margin expanded by 193 basis points to 41%, reflecting better merchandise planning, inventory optimisation and an improved channel mix.
Revenue driven by omni-channel growth
The company said revenue growth was led by strong performances across its exclusive retail stores, large-format outlets and online channels, highlighting the strength of its diversified omni-channel strategy.
Operational profitability also improved significantly during the quarter, helping the company return to positive PBT. Working capital efficiency improved, with gross working capital days declining to 294 days from 327 days in the year-ago period, driven by tighter inventory and receivables management.
Management optimistic
Indian Terrain Fashions Managing Director & CEO Charath Ram Narsimhan said the first quarter marked another milestone in the company’s journey towards sustainable and profitable growth despite a measured consumer spending environment.
He said disciplined execution across merchandising, channel management and cost optimisation helped the company improve margins and profitability while strengthening its omni-channel presence.
The company will continue to focus on expanding its product portfolio, improving customer engagement, enhancing channel productivity and maintaining financial discipline to drive sustainable profitable growth.
Outlook remains positive
Indian Terrain said it enters the second quarter with stronger profitability, improved working capital efficiency and encouraging visibility in its order pipeline.
The company remains focused on converting its healthy order book into sales, accelerating profitable growth across channels, expanding its product range and maintaining disciplined inventory and cost management. It expects its strengthened omni-channel network and operational improvements to support medium-term growth.