Indian Luxury Labels Narrow the Gap with Global Fashion Majors in FY25, Industry Data Indicates

New Delhi – January 2026: Recent financial disclosures compiled by Tofler indicated that Indian luxury fashion houses were steadily closing the revenue gap with global fashion majors operating in the country. While iconic international names such as Hermès, Gucci, and Christian Dior continued to enjoy strong brand recall in India, several homegrown designer labels were reported to have matched or even outperformed their India revenues in FY25.

FY25 Revenue Comparison – Indian vs Global Luxury Brands (Reported)

Available data suggested that select Indian luxury brands delivered robust performances during the financial year, supported by strong domestic demand and category diversification.

• Hermès India was reported to have recorded revenues of approximately ?428 crore, registering strong year-on-year growth.
• Gucci's India operations were said to have reported revenues of about ?265 crore, with a decline compared to the previous year.
• Christian Dior Trading India was believed to have posted revenues in the range of ?257 crore, also reflecting a marginal contraction.
• Indian designer label Manish Malhotra was reported to have generated over ?308 crore in FY25, supported by strong growth.
• Revenues for Sabyasachi Mukherjee were estimated to be close to ?500 crore, while Tarun Tahiliani was believed to be operating at around ?350 crore.

Industry observers noted that some global brands, including Louis Vuitton, had not disclosed FY25 India numbers at the time, though they were still widely regarded as leaders among the best luxury fashion brands in the world operating in the country.

Diversification Driving Indian Luxury Growth

The strong revenue momentum of Indian luxury labels was largely attributed to their strategic shift beyond traditional bridal couture. Brands were increasingly expanding into accessories, prêt wear, jewellery, and lifestyle segments, allowing them to reach younger consumers and the global Indian diaspora.

Several labels were reported to have launched dedicated accessories verticals, including multi-use handbags and jewellery collections positioned for everyday luxury consumption. Industry sources suggested that accessories, once considered ancillary, had emerged as high-margin, high-frequency revenue drivers—particularly among millennial and Gen Z buyers. This shift reflects the broader evolution seen among India's top jewellery designers who have successfully expanded beyond traditional categories.

Ambitious Expansion Plans Ahead

Leading Indian designers were believed to be setting aggressive medium-term growth targets. Revenue ambitions in the range of ?500 crore to ?700 crore by FY27 were reportedly being explored, supported by international collaborations, retail expansion, and technology-enabled distribution strategies.

The growing acceptance of Indian design language—rooted in craftsmanship but aligned with global aesthetics—was seen as a key differentiator helping domestic brands scale faster than their international counterparts in India. This evolution has been accelerated by the digital transformation of luxury fashion shopping in India, which has enabled brands to reach wider audiences both domestically and internationally.

Global Slowdown, Local Acceleration

While several international luxury houses were reportedly facing muted or declining growth in the Indian market, domestic luxury labels were said to be benefiting from rising consumer confidence and a renewed preference for indigenous luxury narratives. The prominence of luxury fashion influencers in India has further amplified the reach and appeal of homegrown brands.

A market outlook referenced from Euromonitor International suggested that India ranked among the fastest-growing luxury markets globally, alongside South Africa and the UAE. The Indian luxury market was projected to reach a valuation of approximately $12.1 billion by 2025, driven by aspirational spending, urban affluence, and the global visibility of Indian designers.

The rise of Indian luxury labels demonstrates how digital marketing has changed the luxury fashion industry, allowing domestic brands to compete with established international houses. From luxurious wedding regalia to everyday luxury accessories, Indian designers are redefining what it means to be among the most expensive fashion brands in the country.