Indian Terrain Fashions reports strong Q2 FY26 rebound with 17.6% YoY revenue growth and EBITDA turnaround
Indian Terrain Fashions announced Q2 FY26 results with 17.6% YoY revenue growth, a positive EBITDA turnaround, and narrowed losses, driven by strong demand and operational efficiencies. H2 outlook remains positive.
The announcement signifies a major financial turnaround for the company, moving from losses to a positive EBITDA and significantly reducing net losses. The positive outlook for H2 FY26, driven by strategic initiatives and market recovery, indicates a substantial positive impact on the company's future performance and investor sentiment.
The company reported a strong rebound with significant year-on-year revenue growth, a positive EBITDA turnaround from a loss, substantial reduction in net loss, and positive PBT. Management commentary and H2 outlook are optimistic, highlighting sustained growth momentum and operational excellence.
* Financial Performance (Q2 FY26): * Revenue from Operations increased to ₹100.96 crore, up 17.6% year-on-year and 47% sequentially. * EBITDA turned positive at ₹9.39 crore, compared to a loss of ₹2.2 crore in Q2 FY25. * EBITDA Margin improved significantly to 9.3% from -2.57% in Q2 FY25. * Net loss (PAT) substantially narrowed to ₹0.44 crore from ₹21.82 crore in Q2 FY25. * Positive PBT (Profit Before Tax) of ₹1.15 crore (1.14%) was reported, against a loss of ₹12.42 crore in Q2 FY25, supported by lower finance costs and reduced depreciation. * Key Business Highlights: * Gross margin expanded to 40.3% (vs 37.4% YoY) due to sharper product mix, disciplined discounting, and sourcing efficiencies. * Operating EBITDA stood at ₹8.5 crore (8.4%), reflecting early operating leverage and tighter cost control. * Disciplined working capital with Net Working Capital at ₹232 crore, ensuring healthy liquidity. * Multi-Brand Outlets (MBO) showed strong turnaround, emerging as a key growth driver. * Exclusive Brand Outlets (EBO) and Exclusive Franchisee Outlets (EFO) delivered stable performance with improved store productivity. * Large Format Stores (LFO) saw revenue decline due to strategic exit from low-margin formats. * Online business transitioned to an outright model with Flipkart, improving profitability since August 2025. * Network optimisation involved churning underperforming stores and opening outlets in stronger catchments, alongside ongoing renovations. * Management Commentary (Mr. Charath Narsimhan, MD & CEO): * The second quarter marked a clear recovery and renewed momentum, driven by focused execution, strong sequential revenue growth, and significant improvement in operating performance. * Sustained gross margins and positive EBITDA are early benefits of cost discipline and a sharper product and channel mix. * Maintained tight control on working capital, ensuring healthy liquidity. * New product launches, improved consumer sentiment, and brand associations strengthened visibility and customer connect. * Confident for H2 FY26 due to festive/wedding seasons and GST reforms. * Outlook – H2 FY26: * Favorable consumption environment is expected to continue. * GST-led affordability to sustain mid-premium apparel growth momentum. * New launches in casual and smart-casual lines are gaining traction. * Continued channel diversification and working-capital discipline to support profitable scale-up. * Target to maintain EBITDA in high single digits over the next few quarters and move towards double-digit levels thereafter.
What to do with a filing like this
Indian Terrain Fashions Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
That call is the part a filing cannot make for you. On RealCase, SEBI-registered research analysts and investment advisers read announcements like this one and turn the ones that matter into actions inside their model portfolios: a change in weight, a hold, or nothing at all. You are not left working out which of the roughly 250 filings published each day needs a response. The portfolio you follow is updated when a filing actually warrants it, with the reason written down.
See the model portfoliosA plain-language summary of a public exchange filing by Indian Terrain Fashions Limited. Read the original for the full detail.