The Indian Garage Co: Growth and Profitability Challenges in Men’s Apparel

The Indian Garage Co, a men’s apparel brand based in Bengaluru, has encountered remarkable growth in the last fiscal year ending March 31, 2025. Nevertheless, the company faced a decline in profitability as expenses outpaced revenue growth. The firm’s operating revenue rose to Rs 204 crore in FY25, up from Rs 101.5 crore in FY24, as indicated in financial documents acquired from the Registrar of Companies (RoC).

About The Indian Garage Co

The Indian Garage Co operates as a direct-to-consumer (D2C) enterprise, focusing on the design, manufacture, and sale of men’s clothing under its own brands, aimed at the mass-premium market. The revenue generated from product sales solely represented the company’s income source. Total income surged to Rs 207 crore in FY25, an increase from Rs 103 crore the previous year.

Expenditure Overview

On the expenditure front, material costs represented the largest portion of expenses, constituting around 44% of total spending. This expense saw a significant rise of 142%, reaching Rs 104 crore in FY25, compared to Rs 43 crore in FY24. Job work charges surged by 193% to Rs 41 crore, while employee benefit costs rose sharply by 240% to Rs 17 crore during the same period.

Furthermore, depreciation expenses tripled to Rs 18 crore, and costs related to transportation and distribution increased by 38.5% to Rs 18 crore. Additional overheads contributed another Rs 39.5 crore to the overall costs. In total, expenses soared by 147% to Rs 237.5 crore in FY25, up from Rs 96 crore in FY24.

Financial Performance

With expenses growing at a rate faster than revenue, The Indian Garage Co reported a loss of Rs 23 crore in FY25, contrasting with a profit of Rs 5 crore recorded in FY24. The company’s return on capital employed (ROCE) and EBITDA margin were reported at -10.44% and -6.37%, respectively.

Unit Economics and Cash Position

On a per-unit basis, the company spent Rs 1.16 to generate a single Rupee of operating revenue in FY25. Additionally, The Indian Garage Co reported a concerning cash and bank balance of just Rs 3 lakh at the close of FY25, a significant decline from Rs 2.5 crore in FY24. Current assets totalled Rs 32 crore during the same timeframe.

Funding and Ownership

According to Thekredible, The Indian Garage Co has successfully raised a total of $17 million in funding to date, with Aditya Birla Group leading the investment round. The firm’s Founder and CEO, Anant Tanted, holds a 32.34% ownership stake in the company.