Tata Group’s retail arm Trent on Friday saw its September-quarter net profit and revenue come below Street estimates, as the company had to contend with growing competition in apparel retail. It, however, continued to add stores during the quarter.
Trent also said that its board had approved tendering of its entire stake of 94,900 equity shares in Inditex Trent Retail India (ITRIPL) under the latter’s share buyback programme. ITRIPL, a 51:49 JV, runs Zara stores. Trent has been trimming stake in the JV over the last two years. It currently has a 34.94% stake in the company.
Trent reported an 11.3% year-on-year (y-o-y) rise in its consolidated net profit to `377 crore for the second quarter of FY26, below Street estimates of `446 crore. Trent flagged muted consumer sentiment in Q2, amid GST transitional issues that hurt retail performance for many firms.
Consolidated revenue from operations for the quarter under review stood at Rs 4,818 crore, up 16% from Rs 4,157 crore in the same quarter last year. The number was below Street estimates of Rs 4,998 crore. It is the slowest growth in at least 16 quarters for the company and is also below its revenue growth target of about 25%.
The company’s total expenses during the quarter increased 18% to Rs 4,267.39 crore from Rs 3,616.07 crore reported last year amid an increase in staff costs and other overheads as it increases its footprint.
Earnings before interest tax depreciation and amortisation (Ebitda) rose 26.5% year-on-year to Rs 817 crore from Rs 646 crore reported a year ago, in line with Street estimates of Rs 813 crore. Ebitda margins rose 150 basis points to 17.5% from 15.5% reported last year.
Trent has been on a store-opening spree in the last few quarters, with its store count climbing to 1,101 across 251 cities at the end of the reported period, compared to more than 800 outlets at the same time last year. “We are adding presence in newer cities across tier two and three markets, as well as emerging catchments in the proximity of metro cities,” Trent said in an investor presentation on Friday.