This study investigates the relationship between inter-organisational trust and businesses' financial performance within the retail textile industry of Chandni Chowk market in Delhi. We have used Resource Based view and Social Exchange Theory to understand how trust, between suppliers and business in the retail textile sector, impacts its performance. A study was conducted and data was analysed through Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal that inter-organisational trust is associated with financial performance, with commitment acting as a mediator. These findings suggest that retail textile businesses should prioritize enhancing commitment to improve their financial performance. Ultimately, the research underscores the critical role of trust in fostering long-term success, as it positively influences both financial and operational outcomes within the industry. We, the authors, confirm that this study is original, conducted independently, and free from plagiarism.