New Delhi [India], November 26 (ANI): The Value fashion players in the apparel industry outperformed the broader textile retail sector in the second quarter, supported largely by the early onset of the festive season, according to a report by Nuvama Research.
The report highlighted that apparel companies posted a mixed bag of results in Q2FY26, with value fashion players emerging as the strongest performers. Their growth was driven primarily by the early arrival of the festive period this year, particularly the Pujo/Durga Puja season.
It stated “Apparel companies reported mixed bag results with value fashion players outperforming the lot, driven by an early festive season this year”.
The early festival timing boosted demand across retail stores, leading to higher footfall and better conversions, especially in eastern markets where value fashion retailers have a significant presence. This contributed to strong revenue growth and high same-store sales growth (SSSG) for these players.
Premium apparel brands also recorded decent like-to-like (LTL) growth across categories. This performance was partly supported by store rationalisation efforts. Meanwhile, footwear companies continued to follow trends seen in past quarters without major deviations this quarter.
The report also noted that the GST rate cuts implemented towards the end of Q2FY26 have not yet played out in the sector’s performance. Their impact is expected to be more visible from Q3FY26 onwards.
However, the GST rate rationalisation, effective September 22, created temporary supply chain disruptions and led several companies to destock wholesale channels, causing short-term operational challenges.
Despite the overall festive-driven boost, the apparel sector also faced localised disruptions. Unseasonal rains in key Pujo markets such as Kolkata and parts of the Northeast, along with political disturbances, slightly moderated shopping momentum during the quarter.
Overall, the early festive season lifted apparel demand in Q2FY26, helping value fashion players outperform, even as the industry navigated cautious consumer sentiment and temporary disruptions linked to GST-related changes.
Sharing the outlook, the report mentioned that the management across sector companies expressed confidence that H2 will be stronger than H1, driven by the wedding season and a likely demand recovery. (ANI)
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