Motilal Oswal has maintained its Buy rating on Trent, with a target price of Rs 3,500. This implies an upside of 12% from the market price. The brokerage said that there is a long runway for growth. The company’s Star store expansion is expected to accelerate in FY27.

Trent: Early Stages of Growth

Trent is currently in the early stages of its growth journey, holding a modest 2% share in India’s fashion and lifestyle retail market.

Since setting an ambition in 2023 to deliver 10x revenue growth, the company’s execution has remained ahead of its roadmap, already achieving over 2.5x revenue and 3x profit growth.

Massive store expansion potential for Westside, Zudio

The company’s management has pegged the medium-to-long-term opportunity at 700 Westside stores (up from 300 currently) and 5,000 Zudio stores up from 960 currently.

Although store densification has recently impacted like-for-like (LFL) growth, it is a deliberate strategy in select micro-markets to improve customer experience and capture a higher share of incremental revenue. The company continues to aspire to early double-digit LFL growth moving forward.

Acceleration of Star stores

Expansion for the Star format is expected to accelerate to 25-40 stores annually starting in FY27, following a period of store network reconfiguration that resulted in 2-3x higher throughput in reconfigured outlets.

The Star format’s long-term profitability is anchored by a very high private-label share, which accounts for 73% of its sales.

Innovation and international diversification

Trent is continuing to incubate new formats like Samoh (ethnic wear) and Burnt Toast (youth-focused) while planning to meaningfully diversify into international markets through Westside and Zudio over the medium term.

Westside operates a unique 100% own-brand model with rapid merchandise refresh cycles. By sourcing over 80% of its products domestically, the format maintains strong pricing power and product differentiation

Trent share performance

The share price of Trent has surged almost 5% in the last five trading sessions. The stock has increased by 14% in the last one month and 14.4% in the past six months. Trent’s stock price has dropped 19% over the previous 12 months. 

Trent Q4FY26

Trent posted a net profit of Rs 413.1 crore in Q4FY26, an increase of 33% year-over-year from Rs 311.6 crore in the same period a year ago. The company’s revenue from operations came in at Rs 5,027.99 crore in the fourth quarter of FY26, surging 19.23% from Rs 4,216.94 crore. 

On the operating front, the company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) advanced 44% YoY to Rs 653 crore.

Also, the company proposed a final dividend of Rs 6 per share for FY26. It had also announced the issuance of bonus shares, wherein shareholders will receive one bonus equity share of Rs 1 each for every two fully paid-up equity shares of Rs 1 each held by them.

Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.