Japanese apparel retailer Uniqlo’s domestic arm aims to close 2025-26 (FY26) with about 44 per cent year-on-year (Y-o-Y) growth, a top official said on Thursday.
The retailer’s Japanese parent, Fast Retailing, expects its consolidated revenue to grow 10.3 per cent to about ₹2.21 trillon in FY26, while business profit is expected to rise 10.7 per cent to around ₹36,000 crore.
“India is extremely central to our future growth,” Kenji Inoue, chief operating officer and chief financial officer, Uniqlo India, told Business Standard as he launched the company’s second store at Phoenix Mall of Asia at Yelahanka in Bengaluru.
“Our share in this market is still very small, which means there is a huge room to grow. The expectation from the global group for India is extremely high. The purpose is not only to grow the domestic business but to expand India as a sourcing hub for our global operations,” he added.
The retailer also aims to make India the global sourcing hub in near future, with a target of 30 per cent of local sourcing.
Inoue noted that Uniqlo currently sources about 15 to 20 per cent of the merchandise sold in India locally. In addition, much of the production from India is exported to global markets.
With 18 stores across the country, Uniqlo has adopted a disciplined expansion approach in India rather than chasing aggressive store-count targets, Inoue said, adding that they have opened around three stores per year over the last six years.
However, the pace is expected to accelerate as it expands further.
The retailer is prioritising metro cities such as Delhi-National Capital Region (NCR), Mumbai, Bengaluru and Pune, where it sees stronger demand and operational efficiencies. “We want to get closer to customers in metro cities while ensuring the quality of service and inventory management remains high,” Inoue said.
In Delhi-NCR, the company currently operates seven stores, and Inoue said the brand could aim for a similar scale in other large metro markets over time, depending on demand.
Uniqlo’s India operations reported margins of about 15 per cent last year in post-tax, which the company expects to maintain going forward. The retailer reported a steep increase of 44.2 per cent in net sales to ₹1,175.5 crore in FY25 from ₹814.8 crore in the year ago period.
At the product level, Inoue highlighted that winter wear remains a strong category, in markets such as Mumbai and Bengaluru, driven by travel demand to some extent.
Simultaneously, demand for spring/summer categories such as linen collections and their signature AIRism products is rising as Indian consumers become more familiar with the brand’s fabric technologies.
“There is still huge room for growth because many customers in India are just beginning to understand our products’ functionality,” Inoue added.
Online sales contribute close to 15 per cent of Uniqlo India’s overall revenue. While this is lower than the company’s global benchmarks, Inoue said the channel is expanding rapidly, with e-commerce growing at roughly 40 per cent on an annual basis.
Unlike many global fashion brands, Uniqlo currently does not plan to sell through third-party or e-commerce marketplaces such as Amazon, Flipkart or Myntra. Instead, it is focusing on strengthening its own digital platform and offline presence. “We want to maintain direct contact with customers so that we can continuously improve our product mix and services,” Inoue said.
The country’s apparel sector is forecast to grow at a rapid 10-12 per cent compound annual growth rate from 2024 to 2030, making it one of the fastest-growing large-scale markets globally, as per a Redseer report in June 2025.
 "UNIQLO targets 44% FY26 growth, plans to make India a global sourcing hub")
