Trent, the retailer behind Zudio and Westside, saw its shares plunge 8% in early trading on Jan 6, sparking concern among investors.
Q3 FY26 Results Overview
The company posted standalone product‑sale revenue of Rs 5,220 crore for the October‑December quarter, a 17% year‑on‑year rise from Rs 4,466 crore. Over the nine‑month period (April‑December) revenue grew to Rs 14,604 crore, up 18% from the prior year.
Store count continued to expand: at quarter‑end Trent had 278 Westside stores, 854 Zudio outlets (including four in the UAE), and 32 stores under other lifestyle concepts. During the quarter it opened 17 new Westside stores and 48 new Zudio stores.
Why the Stock Slid
Analysts had expected a 20% revenue increase, so the 17% growth came as a disappointment. While the total number of stores rose about 28% YoY, revenue per store fell roughly 11%, suggesting internal competition among outlets. The market reacted sharply, wiping out about Rs 13,146 crore from Trent’s market value within five minutes of trading.
Analyst Reactions
- Motilal Oswal: Keeps a “Buy” call but warns that the weaker‑than‑expected growth could trigger earnings downgrades.
- Antique Stock Broking: Cuts target price to Rs 5,700 (from Rs 6,650) but retains a “Buy” rating, seeing >50% upside from the current price.
- Morgan Stanley: Remains “Overweight”, saying the growth aligns with its 18% estimate.
- Citi: Notes revenue beat its 15.3% expectation, but stays cautious because of competition and falling revenue per sq ft, maintaining a “Sell” rating with a Rs 4,350 target.
- HDFC Securities: Upgrades to “Add” with a Rs 4,700 target, citing a healthier valuation and strong franchise fundamentals.
Recent Share Performance
In the five days after the results, the stock slipped about 3%. Over the past six months it’s down more than 25%, and it has fallen roughly 41% in the last year after a 492% rise over the previous five years.
Remember, this is perspective, not prediction. Do your own research and consider your risk tolerance before making any investment decisions.