Trent clocks 20% rise in revenue in Q1 FY26, shares plummet 7% as firm lowers near-term growth

Tata Group-owned retail firm Trent Ltd clocked a 20% rise in revenue in Quarter 1 of the fiscal year 2026. The fashion and lifestyle retail firm reported a standalone revenue of Rs 5,061 crore in Q1 FY26 as against Rs 4,228 crore in the corresponding quarter last fiscal.

However, Trent Ltd stock plunged by 7.51% to Rs 5,726.56 apiece on Friday at 10:42 AM. The company has lowered its near-term growth expectations, projecting 20% growth in its fashion segment in Q1 FY26, well below the 35% CAGR between FY21 and FY25 during the annual general meeting (AGM), held on July 3.

Following this, domestic brokerage firm Nuvama Institutional Equities has downgraded the target price to Rs 5,884 from Rs 6,627, and has trimmed its FY26 and FY27 revenue and EBITDA estimates.

Tata’s Trent pours out stake in Zara India, Massimo Dutti to boost own retail brands

Trent's management has assured that the company is on track to reach the 10x target, and added about the two-fold rise in revenue.

Trent Ltd has scaled up its offline expansion by opening 11 Zudio stores and one Westside store between the April and June quarter in the current fiscal. As of June 30, 2025, Trent's store portfolio includes 258 Westside, 766 Zudio, and 29 stores across other lifestyle concepts in 242 cities. For the ongoing fiscal year, Trent Ltd has eyed to expand its footprint across the country and scale up its supply chain to support growing business. The company has planned to add 250-plus stores in all formats, including the grocery business, in FY26.

Notably, Trent Ltd's sales have improved significantly in the last fiscal despite the multiple headwinds, including inflation and discretionary spending.

Tata’s Trent accelerates retail expansions, adds over 280 stores for Westside, Zudio in FY25

In the fiscal year 2025, Trent's sales rose to Rs 17,624 crore compared to Rs 12,669 crore in the year-ago period. The Tata retail subsidiary also expanded its offline footprints by opening 1,043 new stores in FY25---an increase of 28.6% year-on-year. It added 64 cities to its offline channels in FY25.

According to the company's stock exchange filing, the beauty segment has grown at 149% CAGR in the past five years, while innerwear and footwear have grown at 92% CAGR and 73% CAGR between FY21 and FY25, respectively.

India's fashion and lifestyle market is poised to grow at 10-12% CAGR to Rs 18 lakh crore by 2028, driven by evolving consumer preferences, global access, and digitalization.