Vikash Agarwal emphasises that the company sees strong potential for deepening presence in tier-two and tier-three cities
As consumers increasingly prioritise wellness and style in their fashion choices, the athleisure segment is evolving from a niche market into the mainstream. Highlighting that the segment is clocking growth in double digits annually, Vikash Agarwal, Director, Rupa & Company, has stated that the demand for athleisure, coupled with the brand’s omnichannel presence, is expected to boost the company’s revenue growth in this fiscal year (FY26).
Agarwal emphasised that the company sees strong potential for deepening presence in tier-two and tier-three cities, as lifestyle aspirations in these markets rise. The company is actively targeting Southeast Asia, the Middle East, and Africa, where demand for branded, affordable innerwear and casualwear is rising, he added.
In an interview with BW Retail World, the Director shared insights on the company’s growth prospects, UK-India free trade agreement, update on targeting key export markets, push on omnichannel approach, as well as on the rising demand for athleisure.
Edited Excerpts:
The company’s Net profit jumped 26 per cent in Q4. What’s your take on this? Which segments drove growth?
Rupa and Company’s 26 per cent jump in Q4 net profit reflects the success of its strategic focus on innovation and distribution. Growth was primarily driven by demand in the innerwear, outerwear, and activewear segments, especially among urban youth. The company achieved four per cent volume growth in Q4 and three per cent for the full year, with Q4 revenue reaching Rs 415 crore and EBITDA growing 14 per cent. Export sales surged 24 per cent, while Modern Trade (MT) grew 17 per cent, contributing three per cent and five per cent to overall revenues, respectively.
Which categories or segments will be in focus this year? Especially the high-margin ones.
Our strategic focus this year is on athleisure and activewear, premium innerwear and outerwear, and infant wear for all genders—segments that deliver higher margins and have strong consumer pull. We are enhancing product attributes like moisture-wicking, stretchability, and eco-friendly fabrics to support premium positioning.
Our expanded women’s wear line under Softline Girl and our performance-driven innerwear collections are key areas of investment and innovation to tap into the growing demand for comfort-led fashion.
What is the update on the athleisure segment’s growth? Where do you see it heading?
Athleisure remains a fast-growing category, registering double-digit growth annually. With consumers increasingly prioritising health, wellness, and style, this segment is transitioning from niche to mainstream. Rupa’s athleisure offerings—backed by contemporary styling, comfort-focused designs, and mass appeal—are well-placed to lead this evolution. We see strong potential for deepening presence in tier-two and tier-three cities, as lifestyle aspirations in these markets rise.
What are the revenue expectations for this fiscal year? What is the estimated growth rate for FY26?
We are expecting strong revenue growth this fiscal year, driven by solid performance across our key segments and new product introductions. Looking ahead, our focus remains on sustained expansion through innovation, brand enhancement, and wider geographic reach.
The increasing demand across our athleisure, women’s wear, outerwear, infant wear, and premium innerwear lines, combined with our omnichannel presence, will play a crucial role in maintaining this upward trajectory.
How are you tapping the non-metros? What’s the update?
Tier- two and tier- three cities continue to be a significant growth engine for the company. We are aggressively expanding our retail footprint in these regions to increase accessibility and strengthen brand presence. Our product strategy focuses on offering aspirational yet affordable designs that resonate with local tastes and preferences. To deepen engagement, we are running region-specific marketing campaigns and leveraging local influencers. With rising disposable incomes, increasing fashion consciousness, and a growing appetite for premium innerwear and athleisure in non-metros, we are well-positioned to tap into this long-term opportunity.
What are the plans regarding exports in new emerging markets?
We are actively targeting Southeast Asia, the Middle East, and Africa, where demand for branded, affordable innerwear and casualwear is rising. Our export strategy includes local market adaptation, competitive pricing, and partnerships with regional distributors.
The Company’s strength lies in delivering quality with affordability, and we are backing this with focused branding and supply chain investments to build visibility and trust in these new markets.
How has the evolution of Indian consumers been over the decades in the industry you operate in?
Over the decades, Indian consumers have shifted from being primarily price-conscious to being more quality and brand-oriented. Today’s consumer seeks comfort, performance, and sustainability, all at a fair price. This evolution has worked in the company’s favor as we have consistently reinvented our offerings to keep pace with changing preferences—delivering stylish, functional, and durable products across demographics.
How do you see the United Kingdom-India Free Trade Agreement (FTA) proving beneficial from the textile perspective?
The recent India-UK FTA marks a significant milestone for India’s textile industry, unlocking new opportunities for growth and global competitiveness. With the UK now extending duty-free access to 99 per cent of Indian textile exports, including garments and home textiles, manufacturers stand to benefit from lower costs and more favourable market conditions.
For brands like ours, this agreement presents a strategic opportunity to strengthen our footprint in the UK, one of the largest and most influential export markets for Indian textiles. The removal of import duties not only enhances our pricing flexibility but also allows us to reach a wider base of the Indian diaspora and fashion-forward consumers.
We see this as a catalyst for developing high value-added collections—especially in premium innerwear and athleisure—tailored specifically for international markets.
