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As competition grows in India’s D2C fashion market, brands such as Snitch, Rare Rabbit, Bewakoof and The Souled Store are scaling rapidly. The Indian Garage Co (TIGC) saw its operating revenue grow 15% in FY26, much slower than the 2X growth it recorded in the previous year. However, its losses also increased 27% to Rs 29 crore during the year. TIGC’s revenue from operations increased to Rs 234.6 crore in FY26 from Rs 204.2 crore in FY25, according to its financial statements filed with the Registrar of Companies (RoC). The Indian Garage Co is a D2C fashion firm that designs, manufactures, and sells men’s apparel under its in-house brands, catering to the mass-premium segment. Sale of products was its sole source of operating revenue. 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 the previous fiscal year. For the D2C brand, cost of materials remained the largest expenditure, rising 13% to Rs 117.5 crore in FY26 from Rs 104 crore in FY25. Advertising and promotional expenses more than doubled to Rs 29.3 crore in FY26 from Rs 14 crore in FY25 as the company stepped up spending amid rising competition in the fashion segment. Job work charges, which include third-party vendors for outsourced manufacturing and production-related work, stood at Rs 39.5 crore, while employee benefits expenses rose 24% to Rs 21 crore during the fiscal year. Depreciation and amortisation, finance costs, legal and professional fees, travel expenses, and other overheads pushed The Indian Garage Co’s total expenditure up 16% to Rs 276.1 crore in FY26 from Rs 237.5 crore in FY25. With expenses continuing to outpace revenue, the Aditya Birla Digital-owned company’s losses widened during the fiscal year. Its losses increased 27% year-on-year to Rs 28.7 crore from Rs 22.6 crore in FY25. On a unit level, the company spent Rs 1.18 to earn a rupee of operating revenue in FY26, compared with Rs 1.16 in the previous fiscal year. Its EBITDA margin improved marginally to -5.12% from -6% in FY25, while ROCE stood at -12.61%. Aditya Birla Group’s TMRW invested around Rs 155 crore in TIGC in October 2023 and currently holds a 51% majority stake in the company. TMRW also holds a majority stake in fellow D2C apparel brand Bewakoof, which it acquired in December 2022. The Indian Garage Co’s numbers point to a more difficult phase for scaled D2C fashion brands, where growth alone may not be enough to justify continued investment. As customer acquisition becomes more expensive and competition intensifies, brands need stronger retention, inventory discipline and operating leverage to build durable businesses. For TIGC, the larger question is whether its association with TMRW and the wider Aditya Birla ecosystem can help strengthen distribution and scale while improving the underlying economics of the business.
document fetched 2026-09-29 03:00