INDTERRAIN - Indian Terrain

📊 NSE: INDTERRAIN 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 8:00

💰 Financial Performance

Revenue Growth by Segment

Revenue for FY 2024-25 degrew by 25.31% to INR 340.60 Cr. However, Q2 FY'26 showed a rebound with 17.6% YoY growth to INR 100.96 Cr. EBO (Exclusive Brand Outlet) revenue contributes over 50% of total revenue. MBO (Multi-Brand Outlet) recorded a strong turnaround in Q2 FY'26, while LFO (Large Format Store) revenue declined due to strategic exits from low-margin formats like Reliance and Pantaloons.

Geographic Revenue Split

The company has a wide presence across India with 234 stores as of June 2024, though operations are mostly dominated in the Southern region.

Profitability Margins

Gross margin improved to 40.3% in Q2 FY'26 from 37.4% YoY. Operating Profit Margin for FY 2024-25 was -0.62% compared to 7.45% in FY 2023-24. PAT margin for Q2 FY'26 was -0.44%, a significant improvement from -25.42% in Q2 FY'25.

EBITDA Margin

Operating EBITDA margin stood at 9.3% (INR 9.39 Cr) in Q2 FY'26, compared to -2.57% (INR -2.2 Cr) in Q2 FY'25, reflecting early operating leverage and tighter cost control.

Capital Expenditure

Not disclosed in available documents, though ongoing renovations for EBO and EFO stores are mentioned as part of the strategy to enhance customer experience.

Credit Rating & Borrowing

Crisil reaffirmed the long-term rating at 'Crisil BBB-' and short-term rating at 'Crisil A3' with a Negative outlook. Finance costs for FY 2024-25 were INR 20.96 Cr, a slight decrease of 3.89% YoY.

⚙️ Operational Drivers

Raw Materials

Apparel fabrics and textiles (specific raw materials like cotton or synthetic blends are not named, but COGS represented 59.7% of revenue in Q2 FY'26).

Capacity Expansion

Current store count is 234 as of June 2024. The company is focusing on store productivity and renovations rather than rapid unit expansion.

Raw Material Costs

Cost of goods sold was INR 60.30 Cr in Q2 FY'26, representing 59.7% of revenue. Procurement strategies include sourcing efficiencies to drive gross margin expansion.

Manufacturing Efficiency

Not disclosed in available documents; however, the company exited the boys wear segment to improve overall operational focus.

Logistics & Distribution

Selling expenses were INR 15.14 Cr in Q2 FY'26, representing approximately 15% of revenue.

📈 Strategic Growth

Expected Growth Rate

17.60%

Growth Strategy

Growth is targeted through a sharper product mix, disciplined discounting, and channel optimization. This includes transitioning to an outright business model with Flipkart for online sales and focusing on high-productivity EBOs while exiting low-margin LFO partnerships.

Products & Services

Readymade garments for men, including shirts, trousers, and casual wear.

Brand Portfolio

Indian Terrain

New Products/Services

The company recently closed its boys wear segment to focus on the core men's apparel business.

Market Expansion

Focusing on improving store productivity and secondary offtake in the MBO channel, which has emerged as a key growth driver.

Strategic Alliances

Strategic transition to an outright business model with Flipkart since August 2025 to improve online profitability.

🌍 External Factors

Industry Trends

The apparel industry is seeing a shift toward channel optimization and e-commerce profitability. ITFL is positioning itself by exiting low-margin physical formats and adopting outright models for online sales.

Competitive Landscape

Vulnerable to intense competition from other national and international apparel brands and rapid changes in fashion trends.

Competitive Moat

Moat is built on a 30-year promoter legacy in the apparel industry and a strong brand presence with 234 stores. Sustainability depends on maintaining brand relevance amidst changing fashion trends.

Macro Economic Sensitivity

Highly sensitive to consumer discretionary spending and festive-led demand; Q2 FY'26 growth was specifically supported by festive demand.

Consumer Behavior

Shift toward festive-led demand and improved sell-through in the MBO channel.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with SEBI Listing Obligations and Disclosure Requirements (LODR) and relevant corporate laws. The company maintains an Insider Trading Code and a Risk Management Policy.