The shares of Tata Group’s retail arm Trent extended losses for the second straight day. The share price of Trent slipped nearly 4% after its latest quarterly business update failed to excite investors.
Let’s take a look at the key reasons fuelling investor apprehension-
Trent under pressure: Growth momentum slows
According to the company’s update, Trent reported a 17% year-on-year (YoY) increase in standalone revenue from operations to Rs 5,002 crore for the quarter ended September 2025, up from Rs 4,260 crore in the same period last year. For the first half of FY26, revenue rose 19% YoY to Rs 10,063 crore.
However, the number is healthy, but as per analyst reports this marks Trent’s slowest growth since March 2021, falling short of its long-term target of 25% CAGR and trailing the 20% rise seen in Q1. Leading domestic brokerage house, Motilal Oswal pointed out that, “Trent’s revenue growth continued to decelerate in Q2FY26 (Vs. 57%/40%/37%/29%/20% in the last five quarters), likely due to slowing same-store sales growth and a higher base effect.”
Trent revenue per store declines amid rapid expansion
The company continues to expand its retail footprint but that growth may be coming at a cost. As of September 30, 2025, Trent’s portfolio included 261 Westside stores, 806 Zudio stores (including three in the UAE), and 34 other lifestyle outlets.
During the quarter, it added a net 53 new stores – 13 under Westside and 40 under Zudio. However, according to Motilal Oswal, “Revenue per store declined ~9% YoY, indicating store-level sales cannibalization.” The brokerage added that while overall revenue rose 17%, the expansion of nearly 33% in store count diluted same-store sales performance.
Trent: Brokerages see mixed signals, trim targets
Brokerages remain cautiously optimistic about Trent. Morgan Stanley retained its Overweight rating but trimmed its target price to Rs 5,892 per share, citing a moderation in growth.
Meanwhile, Motilal Oswal maintained a Buy rating, noting that the numbers were largely in line with expectations. The firm noted, “Trent’s reported standalone revenue grew 17% YoY to Rs 50 billion. The implied net revenue of Rs 47.4 billion (+17% YoY) is likely to be broadly in line with our expectations.”
Store expansion picks up, but eyes on H2FY26
Trent’s store expansion activity accelerated in the second quarter after a subdued Q1. Motilal Oswal highlighted that “Westside added the highest number of quarterly stores on net in several quarters, with 13 net additions, taking the total count to 261 (+15% YoY).”
The brokerage also noted that “Zudio witnessed 40 net store openings in Q2FY26 (41 in 1HFY26 vs. 32 in H1FY25), reaching 806 stores (+40% YoY).” Trent also launched a new format, Burnt Toast, during the quarter, taking its other fashion format count to 34 stores (+21% YoY).
Analysts expect store additions to pick up pace in the second half of FY26, as the festive season typically boosts sales and new openings. “All eyes would be on a further scale-up of Trent’s fashion footprint as store expansion remains its biggest growth driver amid weakening SSSG,” Motilal Oswal said.
Trent share performance
Trent’s share price has been under pressure in recent months. The share price has fallen 12% over the past month and is down 34% so far in 2025. On a year-on-year basis, the stock has slipped 37%. The Tata Group retail major has seen a sharp correction from its 52-week high of Rs 8,345, currently hovering closer to its 52-week low of Rs 4,488.