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Tata Group’s retail arm Trent Ltd has pared its stake in its joint venture with Spanish fashion major Inditex, even as it accelerates the expansion of its own retail formats across India.
The company said Inditex Trent Retail India — which operates Zara stores in the country — completed a share buyback, reducing Trent’s holding from 49% to 34.94%. The JV was formed in 2009-10 to bring the global fast-fashion brand to Indian shoppers.
The announcement came alongside Trent’s quarterly results, where the retailer posted an 11% year-on-year rise in net profit, buoyed by continued growth across its broader portfolio despite signs of consumer caution.
For FY 2024–25, Inditex Trent Retail India reported revenue of ₹27.82 billion, underscoring Zara’s steady performance in India’s premium fashion segment. Trent did not disclose the value of the stake sale but confirmed that the partnership remains “strategically important” for both sides.
The move reflects Trent’s sharpened focus on scaling its domestic brands — particularly Westside and Zudio — which have seen strong traction in Tier-II and Tier-III markets. The retailer’s footprint expanded to 1,101 stores across 251 cities as of September 30, 2025, up from just over 800 stores a year earlier.
While Trent’s revenue climbed 16% to ₹48.18 billion during the quarter, growth slowed to its weakest pace in four years amid muted consumer sentiment and tighter household budgets. Its profit margin slipped to 10% from 11% a year ago.
Despite near-term headwinds, Trent said it remains optimistic about India’s long-term consumption potential. Analysts, however, have cautioned that the company’s recent entry into the Nifty 50 index could bring added scrutiny amid cooling demand in the value-fashion segment.
Still, Trent is betting on strategic expansion, brand differentiation, and disciplined execution to strengthen its leadership in India’s fast-evolving retail landscape.
