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Informist, Friday, Nov. 7, 2025

 

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--Trent Jul-Sept net profit INR 4.51 bln
--Analysts saw Trent Jul-Sept net profit at INR 4.42 bln
--Trent Jul-Sept revenue INR 47.24 bln
--Analysts saw Trent Jul-Sept revenue at INR 47.59 bln
--Trent Jul-Sept net profit INR 4.51 bln vs INR 4.23 bln year ago
--Trent Jul-Sept revenue INR 47.24 bln vs INR 40.36 bln year ago
--Trent Apr-Sept net profit INR 8.73 bln vs INR 7.66 bln year ago
--Trent Apr-Sept revenue INR 95.05 bln vs INR 80.27 bln year ago
--Trent Jul-Sept operating EBIT INR 4.77 bln, up 9% on year 
--Trent Jul-Sept operating EBIT margin 10% vs 11% year ago 
--Trent: Opened 19 Westside, 44 Zudio  stores in Jul-Sept 
--Trent Jul-Sept operating EBITDA INR 5.75 bln, up 16% on year 
--Trent Jul-Sept food, grocery revenue INR 8.79 bln vs INR 8.98 bln year ago 

 

By Avishek Rakshit and Gopika Balasubramanium

 

KOLKATA – Addition of new stores in the September quarter that coincides with the festive season backed by a cut in goods and services tax led Trent Ltd. report a net profit marginally better than the Street's estimates.

 

Although the Tata group company's top line, which grew by 17% on year to INR 47.2 billion, failed to meet the Street's expectation of INR 47.6 billion by a thin margin, the net profit grew by 6.5% on year to INR 4.5 billion, ahead of the Street's estimate of INR 4.4 billion.

 

A sharp increase of 64.6% on year to INR 3.2 billion in the company's depreciation and amortisation costs on account of new store openings and a near 12% on year uptick in the purchase of stock-in trade at INR 29.8 billion led total costs to surge by 18% on year to INR 42.7 billion. Noticeably, Trent's increase in costs is higher than its revenue growth.

 

However, increase in the goods and services tax threshold on premium apparels led the total tax outgo to decline by 5.2% on year to INR 1.3 billion. This had a positive bearing on the company's profit growth. The company reports its top line inclusive of the taxes levied on the merchandise.

 

During the first six months of the current financial year, Trent's revenue increased by 18.4% on year to INR 95 billion and the net profit increased 14% on year to INR 8.7 billion.

 

"We are also adding presence in newer cities across tier 2/3 markets, as well as emerging catchments in the proximity of metro cities," Trent said in its investor presentation. "Like for like growth for our fashion portfolio in Q2FY26 (Jul-Sept) was in low single digits," the company said.  

 

The emerging categories, including beauty and personal care, innerwear and footwear contribute to over 21% of the company's overall revenue. The company said its Westside online platform and Tata Neu platform continue to witness traction and grow profitably. In Jul-Sept, online revenues grew by 56% and contributed to over 6% of Westside's revenues. The company opened 19 new Westside stores and 44 Zudio stores during the quarter under review.

 

As of Sept. 30, Trent's store portfolio included 261 Westside stores and 806 Zudio stores. As on Sept. 30, Trent operated with a footprint of over 14 million square feet across its fashion brands.

 

"The consumer sentiment in the second quarter was relatively muted and we also witnessed headwinds given unseasonal rains," Trent said. Initially, the customers appear to have prioritised purchase of bigger ticket products with higher goods and services tax reduction benefits, it said. "Nevertheless, over the medium term we believe demand traction would also be aided for small ticket discretionary lifestyle categories," the company said. 

 

The company's earnings before interest and tax grew 9% on year to INR 4.77 billion during the September quarter and the EBIT margin was 10%, lower than 11% in the year-ago quarter. The company's operating EBITDA rose 16% on year to INR 5.75 billion during the quarter under review.

 

The company's foods and beverage retail business, Star, reported a slight decline in sales to INR 8.79 billion in the September quarter. Under this business, there are 77 stores in 10 cities with a retail area of 1.3 million square feet. "Competitive price points, strong availability, differentiated fresh offerings coupled with a growing assortment of own branded products differentiate Star proposition and help mitigate competitive trends in this space.," the company said.

 

Friday, shares of Trent closed 1.1% lower at INR 4,627.30 on the National Stock Exchange. The company announced its earnings for the September quarter after market hours.  End

 

Edited by Vandana Hingorani

 

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