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Informist, Wednesday, Apr. 22, 2026

 

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--Trent Jan-Mar net profit INR 4.55 bln vs INR 3.50 bln year ago 
--Analysts saw Trent Jan-Mar net profit at INR 3.71 bln 
--Trent Jan-Mar revenue INR 49.37 bln vs INR 41.06 bln year ago 
--Analysts saw Trent Jan-Mar revenue at INR 49.05 bln 
--Trent to pay INR 6 per share final dividend 
--Trent approves 1-for-2 bonus share issue 
--Trent FY26 net profit INR 19.68 bln vs INR 15.85 bln year ago 
--Trent FY26 revenue INR 197.01 bln vs INR 166.68 bln year ago 
--Trent board OKs raising up to INR 25 bln via rights issue, others 
--Trent Jan-Mar operating EBITDA INR 6.68 bln, up 43% on year 
--Trent Jan-Mar operating EBIT margin 11.5% vs 9.7% year ago 
--Trent Chair Noel Tata: Looking to increase pace of Star stores expansion 
--Trent Chair Noel Tata: Still in initial laps of growth 
--Trent: Impact of geopolitical situation is still playing out 
--Trent: Consumers are spending with caution, hitting discretionary spending 
--Trent: Disruptions in West Asia can hit demand in near term 
--Trent: Raw material costs are rising, facing labour shortages in some parts 
--Trent: New markets provide growth opportunity, but will mature over time 
--Trent: Revenue growth from newer stores not comparable to existing stores 
--Trent: Newer markets become more relevant in 2-3 years 
--Trent: Fashion portfolio Q4 like-for-like growth in low single digits 
--Trent: To use additional funds to upgrade stores, up supply chain capacity 
--Trent: To use additional funds to incubate new brands, categories 
--Trent: To use additional funds for Star brand store expansion 
--Trent:Maintaining stable margins should yield better results for our brands

 

By Eshitva Prakash

 

MUMBAI – Trent Ltd. continued its strong performance in the March quarter, with the company reporting a double-digit jump in its revenue and bottom-line figures. While the company's expenses grew on a year-on-year basis, corresponding with the increasing pace of store additions, its revenue growth in the March quarter was the fastest in the financial year 2025-26 (Apr-Mar), helping to expand the company's margins.

The Tata Group retailer's net profit for the March quarter rose almost 30% on year but declined nearly 29% on quarter to INR 4.55 billion, handily surpassing analysts' estimates of INR 3.71 billion. This is the second consecutive quarter when the company's net profit has grown around 30% on year. Its top line at INR 49.37 billion met the Street's view and surpassed the company's provisional figures for the quarter, rising a little more than 20% on year.

 

The company's expenses grew nearly 18% on year to INR 44.21 billion, mainly owing to changes in inventories of stock-in-trade, which fell to INR 940.3 million in the March quarter from INR 2.39 billion in the year-ago quarter. The company's depreciation and amortisation expense also kept the company's margin expansion under check, with the metric rising nearly 38% on year to INR 3.62 billion.

 

As of Mar. 31, Trent operated 1,286 stores in 321 cities. The company's store portfolio includes 300 Westside stores, 963 Zudio stores, and 23 other lifestyle stores. In the March quarter, the company net added 22 Westside stores and 109 Zudio stores, nearly doubling its Zudio store additions sequentially. "The intent (with new store additions) is to grow our presence in both existing and new micro-markets and geographies, and to position ourselves favourably as more regions register stronger economic growth," the company said in its investor presentation.

 

The company's operating earnings before interest, tax, depreciation, and amortisation grew 43% on year to INR 6.68 billion during the March quarter and the operating EBIT margin expanded to 11.5%, marking an improvement from 9.7% in the year-ago quarter. The company said it has not lowered prices as a short-term demand management lever and is focused on better cost efficiency and maintaining a relatively stable margin profile over time, which will yield better results for its brands. "Focus on optimising costs together with realising operating efficiencies is integral to our strategy," Trent said.

 

Addressing the crisis in West Asia and the impact on its business, the company said consumer sentiment was relatively stable at the beginning of the March quarter and the impact of the unfolding geopolitical situation is still playing out. Consumers are spending with caution, resulting in moderation of discretionary spending due to potential increase in the cost of living, it said. The company added that input costs of select raw materials are beginning to see some inflationary pressures and there is also some impact on the availability of labour for its suppliers in certain regions. "Our predominant sourcing remains India-based," Trent said.

 

"We believe that consumer sentiment will recover further in the coming months once the geopolitical environment settles down," Trent Chairman Noel N. Tata said in a statement. Tata added that the company is looking to accelerate the growth of its Star business by making select commitments to retail real estate that allow Star to viably access dense catchments. "We remain convinced that this business is well poised to deliver growing consumer value in the years ahead," he said.

 

The company said it expects the markets it has newly entered will offer substantial growth opportunities but will mature over time in terms of adoption of fashion trends and density of consumption. Hence, the revenue profile and growth trajectory of newer stores are not entirely comparable with those of the existing portfolio. The like-for-like growth for its fashion portfolio in the quarter under review and for FY26 was in the low single digit, it said. "We are primarily seeking to pursue revenue growth across comparative micro-markets vis-a-vis just the performance of comparative stores," it said in the presentation.

 

The emerging categories, including beauty and personal care, inner wear, 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 see traction and grow profitably. In the March quarter, online revenues grew 25% and contributed to more than 6% of Westside's revenue.

 

For FY26, the company's bottom line rose over 24% to INR 19.68 billion and its revenue rose over 18% to INR 197.01 billion. During the year, its depreciation and amortisation costs rose over 51% to INR 13.16 billion and costs classified under other expenses rose 18.3% to INR 22.42 billion.

 

The company announced a final dividend of INR 6 per share but is yet to announce the record date for determining which shareholders will be eligible. Its board also approved an issue of bonus shares under which shareholders will get one bonus equity share of face value INR 1 for every two fully paid-up equity shares held as on the record date.

 

Wednesday, shares of Trent closed 1% higher at INR 4,434.50 on the National Stock Exchange. The company announced its earnings for the March quarter after market hours.  End

 

Edited by Rajeev Pai

 

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