Stock Report

Indian Terrain Reports Operational Turnaround in Q1 FY27; Revenue Up 18.8% YoY to ₹81.74 Crore and PBT Turns Positive

Posted On : 2026-08-02 19:50:22( TIMEZONE : IST )

Premium casual wear retailer Indian Terrain Fashions Limited (BSE: 533329 | NSE: INDTERRAIN) reported its financial results for the first quarter ended June 30, 2026 (Q1 FY27). The company demonstrated a marked top-line expansion and profitability recovery driven by disciplined merchandise planning, inventory optimization, and sales mix improvements.

Indian Terrain delivered a strong start to FY'27, reporting Revenue from Operations of ₹81.74 Crore, representing a growth of 18.8% over the corresponding quarter of the previous year. The Company continued to strengthen its operational performance through disciplined merchandise planning, improved channel mix, inventory optimisation and prudent cost management, resulting in a significant improvement in profitability. Gross Margin expanded by 193 basis points to 41.0%, while Operating EBITDA improved to ₹6.08 Crore with a margin of 7.4%. The Company also reported a positive Profit Before Tax of ₹0.14 Crore, compared to a loss of ₹6.04 Crore in Q1 FY'26, reflecting the continued success of its profitability-focused strategy.

Key Financial Performance Highlights

Indian Terrain delivered a strong start to the fiscal year FY27, backed by top-line acceleration and margin expansion across key profitability parameters:

Revenue from Operations: Climbed 18.8% YoY to reach ₹81.74 crore in Q1 FY27, compared to ₹68.78 crore in Q1 FY26.

Gross Margin Expansion: Expanded by 193 basis points YoY to reach 41.0% (up from 39.0% in Q1 FY26). In value terms, gross margin jumped 24.7% YoY to ₹33.49 crore from ₹26.85 crore in the year-ago quarter.

EBITDA Surge: Operational EBITDA (calculated before depreciation, finance cost, tax, and exceptional items) soared 233.5% YoY to ₹7.57 crore in Q1 FY27, compared to ₹2.27 crore in Q1 FY26. Operating EBITDA stood at ₹6.08 crore with a margin of 7.4%.

Profit Before Tax (PBT) Turnaround: Successfully turned positive to record a PBT of ₹0.14 crore in Q1 FY27, sharply recovering from a loss before tax of ₹6.04 crore registered in Q1 FY26.

Profit After Tax (PAT) Improvement: Net loss before Other Comprehensive Income (OCI) narrowed significantly by 86.6% YoY to ₹0.83 crore in Q1 FY27, compared to a net loss of ₹6.20 crore in Q1 FY26.

Business Highlights - Q1 FY'27:

- Revenue growth was driven by robust performance across Exclusive Retail, Large Format Outlets and Online channels, demonstrating the strength of the Company's diversified omni-channel distribution model.

- Gross Margin expanded by 193 basis points, supported by improved merchandise planning, disciplined inventory management and a favourable channel mix.

- Operating profitability improved significantly, resulting in a return to positive Profit Before Tax during the quarter.

- Continued focus on inventory optimisation and receivables management led to Gross Working Capital Days improving to 294 days, compared to 327 days in the corresponding quarter of the previous year.

- The Company continued to strengthen its distribution footprint and customer engagement while maintaining a disciplined approach towards profitable growth and capital efficiency.

Commenting on the performance, Mr. Charath Ram Narsimhan, Managing Director & Chief Executive Officer, said: "The first quarter of FY'27 marks another encouraging milestone in our journey towards sustainable and profitable growth. Despite a measured consumer spending environment, we delivered healthy revenue growth while significantly improving our profitability through disciplined execution across merchandising, channel management and cost optimisation.

We continued to strengthen our omni-channel presence through improved performance across Exclusive Retail, Large Format Outlets and Online channels, while maintaining focus on inventory optimisation, receivables management and operational excellence. These initiatives resulted in meaningful improvements in gross margins, operating profitability and a return to positive Profit Before Tax during the quarter.

Looking ahead, we remain focused on strengthening our product portfolio, enhancing customer engagement, improving channel productivity and maintaining financial discipline. With a strong brand, an agile business model and a diversified distribution network, we are well positioned to drive sustainable profitable growth and create longterm value for our shareholders."

Outlook:

The Company enters the second quarter with stronger profitability, improved working capital efficiency and encouraging visibility on the order pipeline. Management remains focused on converting the healthy order book, accelerating profitable growth across channels, expanding its product portfolio and maintaining disciplined inventory and cost management. The Company continues to remain optimistic on medium-term growth opportunities, supported by its strengthened omni-channel capabilities, diversified distribution network and continued focus on operational excellence.

Shares of Indian Terrain Fashions Limited was last trading in BSE at Rs. 27.83 as compared to the previous close of Rs. 27.99. The total number of shares traded during the day was 628 in over 22 trades.

The stock hit an intraday high of Rs. 29.50 and intraday low of 27.80. The net turnover during the day was Rs. 17882.00.