D'Decor aims double-digit growth in FY26; eyes 15% revenue from D2C

In a wide-ranging conversation with Storyboard18, Ajay Arora, Managing Director of D'Decor Home Fabrics Pvt Ltd, shared the company's roadmap to achieve double-digit topline growth in FY26, anchored by its Rs 1,000 crore-plus retail sales in India.

Arora outlined a multi-pronged strategy that includes deepening retail presence in tier-II and III cities via franchise partnerships, growing global business despite tariff challenges, expanding FabriCare into new categories like bed linen and blinds, and using AI for design, forecasting, and manufacturing optimization.

He also emphasized the rise of digital and D2C, aiming to scale online sales to 10–15% over the next three years, backed by intelligent tools and omnichannel engagement. Additionally, influencer marketing will see a bigger push, complementing the celebrity appeal of brand ambassadors like Alia Bhatt, Ranbir Kapoor, and Shah Rukh Khan.

Edited excerpts:

How is D’Decor Home Fabrics balancing its luxury offerings with the need to serve the aspirational mass-premium segment in India and abroad?

What we’re witnessing in India today is a structural shift in consumer thinking. With rising education levels, increasing disposable income, the rapid growth of entrepreneurship, and a government that’s actively enabling home ownership and infrastructure, we are engaging with a far more forward-thinking, future-ready Indian consumer.

This is a consumer who expects more from every product, not just beauty or function, but intelligence, longevity, and purpose.

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Our offerings are designed for people who demand both aesthetic refinement and intelligent performance— consumers who seek innovation not as a luxury, but as a standard. We’re building solutions that align seamlessly with the needs, expectations, and pace of modern India and delivers durability and longevity.

What is your roadmap for physical retail expansion, particularly through exclusive brand outlets or large-format experience stores?

We’re leveraging a tailored mix of formats, ranging from exclusive brand outlets (EBOs), both company-owned and franchised, to phygital experiences, large format stores (LFS), and multi-brand outlets (MBOs), to ensure seamless access and a consistent brand experience wherever the consumer is.

We’re significantly scaling up our presence with revitalized EBOs designed to deliver a luxury experience to both consumers and designers in tier-I cities, where demand for curated, high-end design continues to rise, particularly in urban residential hubs.

Simultaneously, tier-II cities are becoming vibrant centres of aspiration, with a new upwardly mobile generation of homeowners and professionals seeking premium yet purposeful interiors.

Franchise partnerships will be a key pillar of this growth in 2025 and in the coming years. We’re focused on onboarding partners who understand the brand, believe in long-term value creation, and can deliver a premium, service-led retail environment. With strong support in training, merchandising, and marketing, our franchise network has become a powerful extension of our brand ethos.

How important is the B2B channel (interior designers, architects, hospitality) to your growth strategy, and how are you strengthening that ecosystem?

The Architects and Interior Designers community (AIDs) is a critical strategic pillar in our ecosystem, not just as specifiers, but as true collaborators in shaping how our products are experienced. Their insight into evolving consumer lifestyles and spatial design allows us to co-create solutions that are both contextually relevant and aesthetically forward. In turn, we equip them with cutting-edge textiles, bespoke support, and digital tools that enhance their creative agility and executional precision.

In the hospitality segment, we’re seeing growing demand for performance-driven, design-forward solutions—exactly what FabriCare was built to address.

How is D’Décor Home Fabrics integrating digital tools, such as virtual room visualizers or fabric preview apps, into the customer journey both online and in-store?

Our digital focus is on building intelligent, intuitive tools that elevate the customer journey from transactional to experiential. We’re in the process of integrating AI- and AR-powered platforms that guide consumers in discovering the right products. These tools will help curate product baskets using simple prompts, helping shoppers find combinations that align with their vision.

What portion of revenue is allocated toward advertising in FY26? Will we see a larger push on digital media versus traditional formats like TV and print?

Of all the home textile companies, D’Decor sales in India is the highest, and we shall ensure that we maintain a leadership position by continuing our marketing spend.

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Our sales in India are in excess of 1000 crores at retail and we consistently spend 5% on brand and marketing. As the consumer is shifting his presence across different channels, we are aligning our communication accordingly. We definitely see the largest growth in spends happening on digital channels and social media.

After memorable campaigns with Shah Rukh Khan and Gauri Khan, are more celebrity-led or influencer collaborations planned to drive aspiration? Which reaps more benefit for you- celebrity or influencer partnerships?

Every brand association we engage in, whether with celebrities or influencers, is deeply strategic and purpose-driven. With Shah Rukh Khan and Gauri Khan, it was a potent mix of star power, authenticity and shared values, an appreciation for beautiful spaces, and a genuine connection to home, which perfectly mirrored our brand promise.

With Alia Bhatt and Ranbir Kapoor, who are now the face of FabriCare, the thought was equally precise. We were looking for a relatable contemporary couple, that brought the same mix, with an abundance of young energy and was symbolic of a new generation of homemakers, who could help us communicate a product that is deeply modern: intelligent textiles that perform without compromising on beauty.

Influencers are a critical part of any brand’s communication strategy today. You will see an increasing presence of influencer driven messaging on our channels to deliver nuance, cultural relevance, and targeted resonance. For us, it’s not about choosing one over the other, it’s about recognizing the role each plays. Celebrities are the face of our brand promise, and influencers are the voice of everyday discovery. Together, they help us stay aspirational, accessible, and above all—authentic.

What are your topline growth and revenue targets for FY26? Which product categories or geographies will drive this growth?

For FY26, we are targeting double-digit topline growth, driven by four clear strategic levers: first, the expansion of our retail footprint in tier-II and tier-III cities through a tightly executed franchise model; second, deeper penetration in key international markets including the U.S., Middle East, and Europe, where demand for high-quality, design-led furnishings continues to scale.

Third, a strong product-led growth agenda, with a focus on value-added upholstery, performance fabrics, and new high-potential categories like ready-made curtains, bed linen, and blinds; and fourth, an accelerated push in B2B and institutional sales, particularly in project-driven segments which offer stable, scalable returns.

This multi-pronged growth will be further amplified by our D2C and digital transformation, which is unlocking newer, high-efficiency revenue channels and enabling us to serve a more evolved, omnichannel customer with precision and speed.

How much of your business currently comes from online platforms and offline stores, and what steps are you taking to increase direct-to-consumer (D2C) sales through your own website?

Today, over 85% of our revenue comes through our strong network of offline retail partners and distributors. Online sales—comprising both marketplaces and our own website—currently contribute a modest but rapidly growing share, currently in the single digits.

That said, D2C is a key focus area for us, and we are making significant investments to scale this channel. We are in the process of launching a redesigned website that will offer enhanced personalization, intelligent product recommendations, and advanced visualization tools to help customers make more confident choices. This is being supported by a fully integrated logistics and warehousing backbone to ensure fast and reliable delivery. Our marketing efforts are now increasingly digital-first, with campaigns rooted in design inspiration, storytelling, and influencer-led content to drive stronger engagement.

At the same time, we are building toward a truly omnichannel retail model, where offline and online touchpoints work in harmony—allowing customers to discover, browse, and purchase seamlessly across platforms.

Our vision is to grow D2C sales to 10–15% of total revenue over the next three years, driven by convenience, customization, and brand engagement.

D’Decor Home Fabrics has had strong export markets historically. How are you planning to strengthen global business, especially in the Middle East, Europe, or the US? How does Trump tariffs impact this strategy and revenue contribution from international markets?

Exports continue to form a significant share of our business, and we’re deeply invested in strengthening it further. In the US, despite ongoing uncertainty around tariffs and geopolitical trade policies, we’ve diversified our customer portfolio and are working closely with distributors and retail brands to create high-value, exclusive ranges. We’re also evaluating localized warehousing and nearshoring strategies to reduce supply chain risk.

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In Europe, design customization and sustainable fabrics are driving demand — and D’Decor is uniquely positioned to offer both at scale. In the Middle East, we’re expanding through premium B2B channels, especially in real estate, hospitality, and retail interiors.

We believe that long-term resilience comes from agility and product innovation, not just pricing. While tariffs do add short-term pressure, our strategy is to invest in brand, design, and global partnerships that strengthen customer stickiness and pricing power.

How is D’Decor Home Fabrics using AI — whether in design innovation, inventory forecasting, customer behavior analysis, or manufacturing optimization?

AI is playing an increasingly central role in how we operate and innovate at D’Décor. Beyond marketing, we are using AI in four key areas:

• Design Innovation: Our digital design team uses AI-assisted tools to create new patterns, forecast trends, and simulate colorways — dramatically reducing time from concept to sample.

• Demand Forecasting & Inventory Optimization: AI models help us predict demand at the SKU level, factoring in seasonality, regional preferences, and macro trends. This helps improve service levels while minimizing working capital.

• Customer Analytics: On our D2C platforms, we’re deploying AI to personalize product recommendations, understand browsing behavior, and optimize pricing and promotions.

• Manufacturing Efficiency: AI-led monitoring tools are being piloted across dyeing, weaving, and finishing to reduce defects, predict machine downtimes, and improve energy efficiency. This is just the beginning — our vision is to make D’Decor a truly intelligent enterprise, where data and design work hand in hand.