Trent Drops 6% Post Q2 Results Show Slowest Revenue Growth Since 2021; Brokerages Cut Targets

Trent Drops 6% Post Q2 Results Show Slowest Revenue Growth Since 2021; Brokerages Cut Targets

Trent Share Price: Shares of Trent Ltd, the Tata Group-owned parent of Zudio and Westside, fell more than 6.5% in early trade on November 10, after the company reported its slowest quarterly revenue growth since March 2021. Several brokerages cut their target prices, citing moderation in sales momentum.

The stock hit a 52-week low of Rs 4,326.5 on the BSE during morning trade. Trent had announced its Q2 FY26 results after market hours on Friday.

For the quarter ended September 2025, Trent posted a standalone net profit of Rs 451 crore, up 6.5% YoY from Rs 423.44 crore in the same period last year. Revenue from operations rose 17% YoY to Rs 4,724 crore, compared with Rs 4,036 crore a year earlier. However, this marked the slowest topline growth since early 2021, according to Reuters.

Operating profit increased 16% to ₹575 crore, while the EBIT margin slipped to 10.2% from 11% last year, reflecting cost pressures and softer demand.

Jefferies: Maintained a Hold rating but cut its target price to Rs 5,000 (an 8% upside). The brokerage flagged slowing revenue growth at 17%, nearly flat EBITDA margin, and said that store additions and non-apparel categories remained bright spots.

Morgan Stanley: Reiterated an Overweight call with a target of Rs 5,456 (18% upside). It noted muted fashion demand due to unseasonal rains and weak sentiment, as customers shifted focus to high-ticket purchases following GST rate cuts.

Motilal Oswal: Kept a Buy rating but trimmed its target price to Rs 6,000 (30% upside). The brokerage said 43% YoY growth in retail area was offset by a 17% fall in revenue per square foot, pointing to possible store-level cannibalisation. It raised FY26–28 EBITDA estimates by 4–5% on cost savings but cut FY27–28 earnings by a similar margin due to higher depreciation.

HDFC Securities: Maintained a Reduce rating with a target price of Rs 4,300 (7% downside). It warned that to meet consensus estimates for FY26, H2 revenue must grow 29% or more, a challenging ask given current trends.

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Citi: Downgraded the stock to Sell and slashed its target price sharply to Rs 4,350 from Rs 7,150 earlier (6% downside). The brokerage cited weak consumption, rising competition, and cannibalisation from rapid expansion in Tier-2 and Tier-3 cities.

Trent's shares have fallen over 7% in the past week and more than 20% in the last six months. So far in 2025, the stock is down 38%, with its P/E ratio currently around 108.

Source: News18
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