The Tata Group-owned Trent on Friday said that its standalone revenue grew by 20% year-on-year in the June 2025 quarter, highlighting concerns about a retail slowdown and competitive intensity hurting the firm.
The revenue growth was well below the 35% compound annual growth rate (CAGR) Trent had reported in the last five years in terms of its top line, according to analysts.
Shares of Trent tanked nearly 12% on the BSE to close at Rs 5,448.65 apiece, following the disclosure made in Trent’s business update for the first quarter of FY26 released on Friday.
At the end of the quarter, the company’s store portfolio comprised 248 outlets of Westside, 766 of Zudio and 29 outlets of other lifestyle concepts. The company opened a total of 12 stores — one of Westside and 11 of Zudio — in the June quarter. At the net level though, store openings were 11 owing to the relocation of one store, it said in its disclosure.
Trent had highlighted at an analyst meet last week that it was looking at a revenue CAGR of 25% in the next few years, implying that the Q1 top-line growth rate was below its stated revenue growth target, brokerage firm Nuvama said on Friday. Nuvama pointed to growing competition in value retail from national and regional players, as well as a high-base effect beginning to kick in for Trent.
The brokerage firm has cut its revenue growth estimates for Trent for FY26 and FY27 by 5% and 6%, respectively, and its earnings before interest, tax, depreciation and amortisation (Ebitda) estimates by 9% and 12%, respectively. It has downgraded Trent to “hold” from its earlier rating of “buy” and cut its price target to Rs 5,884 from Rs 6,627 earlier.
Brokerage firm Morgan Stanley, meanwhile, has maintained an “overweight” stance on Trent, with a price target of Rs 6,359, stating that the growth rate in the next five years could be at 25-30%.
Trent had indicated during its analyst meet last week that it wasn’t concerned about competition as there was space for multiple players in value apparel retail.
Of the 25 analysts that cover Trent, 18 have a “buy” rating on the stock, four have “hold”, and three have a “sell” rating, according to data sourced from Bloomberg.