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The Indian Garage Co (TIGC), the D2C fashion brand owned by Aditya Birla Group’s TMRW, reported a moderation in growth during FY26 as rising competition and higher marketing expenses weighed on its financial performance.
According to financial statements filed with the Registrar of Companies (RoC), TIGC’s revenue from operations increased 15% to Rs 234.6 crore in FY26 from Rs 204.2 crore in FY25. This marked a significant slowdown from the more than two-fold revenue growth recorded by the company in the previous fiscal year.
The company’s total income, including other income of Rs 2.95 crore, stood at Rs 237.5 crore during FY26, compared with Rs 206.9 crore in FY25.
The Indian Garage Co designs, manufactures and sells men’s apparel through its in-house brands, targeting the mass-premium segment. Product sales remained its only source of operating revenue during the fiscal year.
Material costs continued to account for the largest share of the company’s expenditure, increasing 13% to Rs 117.5 crore from Rs 104 crore in FY25. At the same time, advertising and promotional expenses more than doubled to Rs 29.3 crore from Rs 14 crore as the company increased spending amid intensifying competition in India’s D2C fashion market.
Job work charges, covering outsourced manufacturing and other production-related activities, stood at Rs 39.5 crore during FY26. Employee benefits expenses rose 24% to Rs 21 crore.
Overall, TIGC’s total expenditure increased 16% to Rs 276.1 crore in FY26 from Rs 237.5 crore a year earlier. The increase kept expenses ahead of revenue growth and resulted in a wider loss.
The company’s loss increased 27% year-on-year to Rs 28.7 crore in FY26 from Rs 22.6 crore in FY25. On a unit economics basis, TIGC spent Rs 1.18 to generate every rupee of operating revenue, compared with Rs 1.16 in FY25.
Its EBITDA margin, however, improved marginally to -5.12% from -6% in the previous fiscal year. Return on capital employed (ROCE) stood at -12.61%.
TMRW, the Aditya Birla Group-backed fashion and lifestyle platform, invested around Rs 155 crore in The Indian Garage Co in October 2023 and currently holds a 51% majority stake in the company. TMRW also owns a majority stake in D2C apparel brand Bewakoof, which it acquired in December 2022.
The financial performance comes as India’s D2C fashion segment sees increasing competition from brands such as Snitch, Rare Rabbit, Bewakoof and The Souled Store, which are expanding their presence across categories and channels.
For TIGC, the FY26 numbers highlight the pressure on growth-stage fashion brands to balance expansion with marketing spends and operating costs. The company’s ability to improve cost efficiency while sustaining revenue growth will remain important as competition for consumers intensifies.
