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Informist, Monday, Oct. 27, 2025

By Avishek Rakshit

MUMBAI – Increasing sales on account of opening of new stores and the onset of the festive season are expected to help Trent Ltd. report a strong top line growth for the September quarter. However, increased sales from the lower-priced Zudio brand products may lead to a fall in the company's margins. The profit growth may lag revenue growth as well, sector analysts said.

The Tata group company's consolidated top line for the September quarter is expected to rise 18% on year to INR 48 billion, according to the average of estimates from four brokerages. On a sequential basis, the company's revenue is expected to fall marginally. The highest estimate for the company's September quarter revenue is INR 48.3 billion by Kotak Securities Ltd. and the lowest is INR 47.2 billion by Sharekhan Ltd.

Trent's bottom line for the September quarter is expected to rise 4.3% on year and 4.5% on quarter to INR 4.4 billion. The highest estimate for its net profit is INR 4.8 billion from Kotak Securities and the lowest is INR 4 billion from Sharekhan. The company will declare its September quarter results on Nov. 7.

In a quarterly update earlier this month, Trent said its top line, inclusive of taxes, has increased by 17% on year to over INR 50 billion. During the first half of the current financial year, sales have grown by 19% on year to INR 100.6 billion, the company said.

Kotak Securities said Trent's top line growth will be driven by new store additions. Trent opened 31 new stores under the Zudio brand, which operates in the mid-premium apparel space, taking the total Zudio store count to 806 on Sept. 30. Six stores under the premium Westside brand were also added, taking the total store count of this brand to 261.

The festival season that started in September is also expected to have led to increased sales and the cut in goods and services tax rates led to pent-up demand, Sharekhan said.

Despite sales from Zudio stores increasing, the revenue per square feet of store area, however, declined by 13% on year, Kotak Securities said. Besides, brokerages are of the view that although Trent opened new stores, older stores continued to pull in buyers and hence new store revenues may not have risen as much as expected.

Trent's earnings before interest, tax, depreciation, and amortisation are expected to be around 8 billion for the September quarter, according to the average of estimates from three brokerages. The EBITDA estimates range between INR 8.4 billion by Kotak Securities and INR 7.7 billion by Motilal Oswal Financial Services Ltd. 

Kotak Securities said Trent's gross margins are expected to fall 80 basis points on year on account of higher mix of revenues from Zudio.

Shares of Trent Monday ended at INR 4,798.70, up 0.2% on the National Stock Exchange. The shares are down over 9% since the company announced its June quarter earnings in August.

Of the 11 research reports on the company available with Informist, seven have a  'buy' rating on the stock at an average target price of INR 6,750. Two brokerages each have a 'hold' and 'sell rating on the scrip.

Following are the Jul-Sept earnings estimates for Trent Ltd. from four brokerages in descending order of the estimate of net profit:
 

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IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vandana Hingorani

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