New Delhi, July 27 -- Tata Group's online retail arm is edging closer to profitability after a strategic reset, but its turnaround now runs into a tougher challenge: carving out a distinctive place in India's increasingly crowded luxury market.

Tata UniStore Ltd, which owns and operates Tata CLiQ and Tata CLiQ Luxury, narrowed its losses in fiscal year 2026 (FY26) as revenue grew, according to the Tata group's annual report released on Monday. Revenue rose 20.4% to Rs.354.40 crore from Rs.294.43 crore a year earlier, while net loss narrowed to Rs.252 crore from Rs.314.32 crore.

The improvement follows a multi-year restructuring of the business, even as India's luxury retail market expands on rising discretionary spending and a growing a...