Tata’s Trent: Is a re-rating due after 20.2% Q4 revenue surge?

The lifestyle retailer, Trent whose store network includes Westside, Zudio and Star stores, has declared its performance update for the March 2026 quarter, and it has helped to allay some of the fears of investors on Dalal Street related to consumer spending patterns arising from the Middle East war coupled with intense competition from online retail platforms. 

The Tata-controlled retailer highlighted its standalone revenue grew by 20.2% y-o-y to Rs 4,937 crore in the March 2026 quarter, and it was much higher than growth reported in earlier quarters of FY26. The retailer has not provided further details on the growth in the different retail formats it operates in Q4FY26.

The growth reported by Trent has come at a time when competition from online retail platforms has been very intense. Meesho, an online retail platform, has not yet declared its quarterly update / performance for the March 2026 quarter.

Although not strictly comparable, Meesho, while declaring its results for the first time in Q3FY26, pointed out placed orders for Q3FY26 stood at 690 million, up 36% y-o-y. Also, annual transacting users grew 34% y-o-y to 251 million in the quarter under review.

Meesho’s  consolidated revenue from operations grew 31.6% y-o-y to Rs 3,517.5 crore in the December 2025 quarter.

Trent’s performance in March 2026 quarter – overcoming sluggish consumer sentiment

Revenue Surge: Standalone Growth Hits FY26 Peak

The growth reported by Trent in the March 2026 quarter is better than earlier quarters of FY26. For instance, in the December 2025 quarter, Trent had grown its standalone revenues by nearly 16% y-o-y.

In its result presentation for Q3FY26, the Trent management had highlighted several factors for slowing growth in its revenue from operations. 

The retailer had highlighted early festive season in 2025 and that resulted in third quarter revenues (of the financial year) that are not entirely comparable with a year earlier. Also, the retailer saw continued impact following the transition to the new GST regime, with lower prices of most goods adversely affecting sales growth. 

It also highlighted that consumer sentiment in the third quarter of FY26 was relatively muted coupled with certain supply chain related challenges, given continuing geopolitical disturbances. 

Meanwhile, Trent grew its standalone revenues by 17% y-o-y in the September 2025 quarter, and the retailer had pointed out that consumer sentiment in the second quarter was also relatively muted and witnessed headwinds, given unseasonal rains.

It also highlighted the second quarter of FY26 saw the transition to the new GST regime, with customers appeared to have prioritized purchase of bigger ticket products with higher GST reduction benefits.

And in the first quarter of FY26, the retailer had grown its standalone revenues by 19.8% y-o-y.

The Zudio multiplier: Store network crosses 1,200 mark

Store expansion in Q4FY26 was faster than earlier quarters with the management focussing on long-term growth opportunities, especially in tier-II and III cities / towns.

Trent opened (net) 22 Westside stores in Q4FY26 along with 109 Zudio stores. As a result, Trent’s retail network portfolio of 1,286 stores included 300 Westside, 963 Zudio (including 6 in the UAE) and 23 stores across other lifestyle concepts at the end of the March 2026 quarter.

The retailer had ended December 2025 quarter with a store network of over 1,100 “large-box” fashion stores, with a presence across 274 cities. In Q3FY26, the Tata group retailer opened 17 Westside and 48 Zudio stores (including 1 store in the UAE). Its retail network, as of 31st December 2025, included 278 Westside, 854 Zudio (including 4 stores in the UAE) and 32 stores across its lifestyle concepts.

Investors on Dalal Steet  

The strong performance update helped the Trent stock rise 7.9% to Rs 3,834 in Monday trade.

Investor concerns on the growing competition from online retail platforms coupled with the broad sell-off on Dalal Street over the past few days had resulted in the stock hitting a 52-week low of Rs 3,276 on 30 March, 2026.

Apart from revenue growth for Trent, investors will also be closely monitoring the retailer for its ability to manage its operating costs. For instance, in the December 2025 quarter, Trent faced sluggish consumer sentiment, however, a tight check on its costs helped Trent’s consolidated operating profit margin grow 200 basis points y-o-y to 20.3% in the quarter under review.

Another leading retailer, Avenue Supermarts, which operates Dmart chain of stores, saw its stock gain 4.4% on Monday. The stock had hit a 52-week low of Rs 3,528 on 2 March, 2026 and has risen considerably since then.

Sky-high valuations of retail chains: Are high valuations for leading retail chains justified?

The stocks of Trent and Avenue Supermarts have seen a correction from earlier highs, yet they trade at very high P/Es.

Trent trades at a consolidated P/E of 81.2, according to Screener.in. Avenue Supermarts trades at a consolidated P/E of 101.

Over the past 10 years, Trent has traded at a consolidated P/E between 74.8 times and 527.6 times. Meanwhile, Avenue Supermarts over the past decade has traded at a consolidated P/E between 81.4 times and 313.9 times.

A key factor that was attributed to the extremely high valuations of these two leading retail chains was the strong growth potential of organised retail.  

Investors will need to carefully monitor the expansion of online platforms and their potential impact on the growth prospects of Trent and Avenue Supermarts, going forward, before making any fresh investments in leading retail stocks .

Add these stocks to your watchlist to track their performance going forward.

Disclaimer:

Amriteshwar Mathur is a financial journalist with over 20 years of experience.

The writer and his family have no shareholding in any of the stocks mentioned in the article.

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