Mumbai, October 7, 2025 — Shares of Trent Ltd., the Tata Group’s apparel and lifestyle arm, took a tumble on Tuesday after the company released its quarterly business update. The stock dropped more than 3% in early trading, reflecting investor disappointment with its latest performance numbers.
Key Numbers From the Quarter
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Trent reported standalone revenue of ₹5,002 crore for the June–September quarter, marking a 17% year-on-year increase.
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For the first half of FY26, revenue grew by 19% compared to the same period last year.
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During the quarter, the company expanded its retail footprint by opening 13 new Westside stores and 40 Zudio outlets.
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At quarter-end, its total store count stood at 261 Westside, 806 Zudio (including 3 overseas), and 34 other lifestyle format stores.
Despite these growth efforts, the reaction in the market was harsh — investors seemed unimpressed by the pace and quality of the expansion.
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Why the Drop? Here’s What Worried Investors
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Slowest Growth in Years
While 17% growth is decent, it’s the weakest quarterly growth Trent has posted in over four years. Many analysts view this as a clear sign of moderation, especially since it lags its own goals and past momentum. -
Revenue per Store Decline
The aggressive store expansion seems to have come with tradeoffs: revenue per store fell by about 9% YoY, suggesting sales at existing outlets lagged. This suggests possible cannibalization or saturation in some markets — a red flag for long-term profitability. -
Valuation Pressure and Broker Downgrades
Some brokerage houses have trimmed their targets or downgraded the stock. The market is starting to question whether current valuations still make sense if growth slows further. -
Macro & Consumer Headwinds
The retail sector is facing pressure from inflation, tightening consumer spending, and rising costs of operations (rent, fuel, input prices). In that environment, mid-tier lifestyle brands may see more strain than before.
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What Analysts Are Saying
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Some brokers remain cautiously optimistic, pointing to Trent’s store expansion strategy and strong brand positioning as positives — especially heading into the festival season, which tends to boost retail sales.
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Others, however, are skeptical. They highlight that if growth continues to decelerate, valuation multiples will come under pressure.
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All eyes will be on same-store sales growth (SSSG) for the coming quarters. If Trent fails to revive sales at existing outlets, expanding further will not help much.
What Investors Should Watch
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Next earnings report & margins — A rebound or further weakness here will be critical.
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Same-store sales trends — If newer stores keep outperforming, that’s positive, but stagnation or decline in established stores will raise concern.
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Cost control & efficiency — With challenges on all fronts, managing costs will become as important as growing revenue.
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Market sentiment & valuation re-rating — The stock may continue to swing with investor expectations; any sign of renewed confidence could help.