Indian Terrain Fashions Limited — Important, 12-11-2024: General Updates

**Market Update**

The consumer market remains subdued, further challenged by heavy rains and an increasing competitive landscape in fast fashion. There is a notable shift in spending trends, with consumers favoring travel and dining over apparel, leading to reduced footfalls in stores. Despite these challenges, the demand for apparel is expected to recover in the upcoming months, driven by early festive activities and a strong wedding calendar.

**Financial Highlights**

The company reported revenues of ₹85.83 Cr for Q2 FY25, a significant decline of 38.8% YoY, attributed to drop in demand across retail and wholesale sectors. The closure of 17 underperforming exclusive brand outlets and 161 large format store counters contributed to this decline but resulted in improved channel profitability. The EBITDA margin fell to -2.6%, reflecting overall weaker sales, though the company is pursuing operational efficiencies to enhance revenue quality.

**Investor Implications**

The substantial revenue downturn indicates immediate challenges, but ongoing internal strategies aim to pivot towards profitability. Investors should watch closely as market conditions may stabilize, potentially allowing Indian Terrain to reclaim growth momentum in H2 FY25.