Trent shares sink 12 pc as Q1 revenue growth disappoints Street
Mumbai, July 7
Shares of Trent Limited, the Tata Group's retail arm, plunged nearly 12 per cent on Tuesday after the company's June quarter standalone revenue growth fell short of market expectations, triggering sharp selling in the stock.
The stock declined as much as 11.93 per cent during the session to an intra-day low of Rs 2,944.60 on the NSE.
Trent reported standalone revenue from operations, excluding GST, of Rs 5,666 crore for the June quarter, marking a 19 per cent year-on-year increase from Rs 4,781 crore in the corresponding period last year.
Revenue from the sale of merchandise, excluding other operating income, also rose 19 per cent compared with a year ago.
Despite the healthy growth, investors were disappointed as analysts had expected revenue expansion in the low-to-mid 20 per cent range. The weaker-than-anticipated performance weighed heavily on market sentiment, leading to a sharp decline in the company's share price.
The retailer continued to expand its store network during the quarter, taking its total portfolio to 1,312 stores as of June 30, 2026. The network includes 301 Westside outlets, 982 Zudio stores-including seven in the UAE-and 29 stores across its other lifestyle concepts. During the quarter, Trent added a net 20 stores, comprising one Westside outlet and 19 Zudio stores, reflecting its continued focus on strengthening its value fashion business.
Brokerage Citi said Trent's standalone revenue growth of 19 per cent was below its estimate of 23 per cent. The firm noted that while the growth rate was marginally better than the previous three quarters -- 20 per cent in Q4, 16 per cent in Q3 and 17 percent in Q2 -- it still failed to meet market expectations.
According to Citi, concerns persist over declining store productivity, intensifying competition in the value fashion segment, the impact of cannibalisation as the retailer expands its footprint, and the company's growing presence in Tier II and Tier III markets.
Separately, the company is also set to witness a leadership transition. At Trent's 74th annual general meeting held in late June, Chairman Noel Tata announced that it would be his final AGM at the helm of the company.
— IANS
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