Bershka reported its first full-year profit of ₹2.92 crore in India for FY26, succeeding under Inditex's direct-subsidiary model. In contrast, the Zara joint venture with Trent saw a 1.2% revenue decline and a 32% drop in profits. This divergence reflects the intense competition in the Indian fashion retail market.
Inditex is seeing a split in performance between its brands in India. Its brand Bershka, which operates under a direct-subsidiary model, reported its first full-year net profit of ₹2.92 crore for the fiscal year ending March 2026. This is a change from the previous year, when it recorded a loss of ₹0.39 crore. For the same period, the brand generated revenue of ₹80.34 crore.
This performance contrasts with that of Zara, which operates in India through a joint venture with Tata Group's retail arm, Trent. Zara has faced pressure, with revenue for the joint venture dropping 1.2% to ₹2,749 crore in FY26. Profits for this business unit fell by 32%, marking a difficult period for the brand in the country.
The difference in performance is drawing attention to the two operational models used by Inditex in India. Bershka is run directly by the parent company, which gives it full control over its operations and strategy. Conversely, Zara and Massimo Dutti are managed in partnership with Trent.
The fashion retail environment in India has become highly competitive. Consumers now have many more choices, ranging from expensive luxury labels to budget-friendly digital brands. This change in consumer preference has put pressure on established international chains to maintain their growth. The market is currently split between premium shoppers and those looking for value, which impacts how different brands perform.
Not all brands under the Inditex and Trent partnership are struggling. Massimo Dutti showed growth, with its revenue climbing 28% to ₹128 crore in FY26, up from ₹100 crore in the previous year.
For investors, the key monitorable will be how the Zara joint venture manages its growth in the coming quarters and whether the company adjusts its strategy to deal with the shifting retail landscape. The performance of these brands offers insight into consumer demand for international fashion and the effectiveness of different business structures in a challenging market.