Trent Q2 Results: Profit Jumps 25%, Zudio Crosses 1,000 Stores; Brokerages Split on the Stock
Tata Group's retail company Trent has announced its results for the September 2026 quarter (Q2 FY27). The consolidated profit of Trent, the parent of Westside and Zudio, rose 25% year-on-year to ₹468 crore. Zudio crossing the 1,000-store mark was another big milestone for the quarter.
What the Results Showed
The company released its results on October 29 after the board meeting. Consolidated revenue grew about 22% to ₹5,873 crore. According to PTI, the company had booked a pre-tax gain of ₹96 crore from asset sales in the same quarter last year, while there is no such material gain this time. In other words, the 25% growth has come mainly from the core business.
In the first half (H1 FY27), consolidated revenue grew 20% to ₹11,628 crore and profit rose 24% to ₹986 crore.
A Look at Margins
According to one report, EBITDA was around ₹1,060 crore and the margin reached about 18%, against analysts' estimate of around 15.7%. EBITDA growing faster than revenue suggests the company is gaining operating leverage as its store base expands. Figures differ slightly across sources, so it is better to check the company's filing for the final numbers.
Q2 Business Update: Stores and Standalone Numbers
The company had already given a business update on October 5:
- Standalone revenue grew 23% to ₹5,788 crore (₹4,724 crore a year ago). This was the fastest growth in the last six quarters.
- Standalone revenue for the first half grew 21% to ₹11,454 crore.
- Total stores rose to 1,342, including Zudio's 1,000th store.
- In Q2, 10 Westside and 17 Zudio stores were opened.
After this update, the stock hit a 10% upper circuit on October 6 and reached ₹2,832.50.
Brokerage Views: Both Bulls and Bears
- HSBC: Buy, target ₹3,390
- Morgan Stanley: Overweight, target ₹3,406
- Macquarie: Outperform, target ₹3,600
- Bernstein: Outperform, target ₹3,500 (after Q1 results, in August)
- Nuvama: Buy, target ₹3,591 (after Q1 results, in August)
- Goldman Sachs: Neutral, target raised to ₹3,010 from ₹2,960
- Citi: Sell, target ₹2,950
Citi's concern is revenue per square foot. According to CNBC-TV18, it estimates this has fallen about 8.4%. Rising competition, cannibalisation and input cost pressure are also part of its worry. The other brokerages, meanwhile, are encouraged by store expansion and market share gains, although some have pointed to the high valuation. Fresh targets after the results are yet to come.
The Stock's Position
On October 14 the stock was at ₹2,971 with a market cap of about ₹1.6 lakh crore. The 52-week range is ₹2,183.67 to ₹4,866.50. So the stock remains well below its highs but has recovered from its lows.
What to Watch Next
Investors will be watching three things: like-for-like growth in the festive season, the trend in revenue per square foot, and the stability of margins amid input costs. The company's 25% CAGR target will hold only if each store's earnings hold up as the store count grows.
(Disclaimer: This article is for information only and is not investment advice. Investing in the stock market is subject to risk; consult your financial advisor before investing.)
