Fashion retailer Trent saw its consolidated net profit rise 3.1% year-on-year in the October–December quarter (Q3) of FY26 to Rs 513 crore, hurt by a one-time charge of Rs 26 crore due to the new labour code and missing street estimates of Rs 535 crore.
Its revenue from operations rose 14.8% year-on-year to Rs 5,345 crore in Q3 compared to the same period last year, in line with street estimates of Rs 5,342 crore, led by a surge in spending due to GST rate cuts in apparels. Yet, the Q3 growth rate lagged its stated target of 25% in terms of topline growth set during its Annual General Meeting in July last year.
Noel Tata, chairman of Trent, said, “On a higher base, our fashion business registered category-leading growth during the quarter. Customer sentiment is gradually improving and our business outlook for the medium term continues to remain positive. Our focus continues to be on portfolio growth, elevating products and enhancing store experience.”
Over 100 stores between April and December of FY26
Despite the challenges, the Tata group-owned retailer, which owns youth-focused fashion chains Zudio and Westside, has added more than 100 stores between April and December of FY26 as it bets on growing demand for branded fashion in India. The company operates over 1,100 large-box fashion stores with a presence across 274 cities at the end of Q3.
Earnings before interest tax depreciation and amortisation (Ebitda) rose 27.6% year-on-year to Rs 1,081 crore, ahead of analysts estimate of Rs 994 crore for the period. Ebitda margins were up 200 basis points to 20.2% in Q3 versus 18.2% reported a year ago.
“We believe given our approach with respect to merchandise sourcing, price architecture, distribution and our disciplines around inventory provisioning, the full-year results are more representative of the health of the business. The gross margin profile of Westside and Zudio remains stable. Operating EBIT margin for Q3FY26 was 13.8% (13.2% for Q3FY25),” the company said on Wednesday.