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Nifty IT index dropped 1%, extending a 7% decline over two sessions., AI competition concerns after Anthropic's legal AI tool launch hit IT stocks, Jefferies warns AI could erode IT firms' application services revenue

* Nifty IT index dropped 1%, extending a 7% decline over two sessions.
* AI competition concerns after Anthropic's legal AI tool launch hit IT stocks
* Jefferies warns AI could erode IT firms' application services revenue

IT stocks fell for a second day as Anthropic’s new AI legal tool raised fears of increased competition and disruption. The Nifty IT index dropped nearly 1%, with major firms like Infosys and HCL Technologies declining, and analysts warn of more pain ahead.

shorts/business/infosys-hcltech-other-it-stocks-extend-decline-led-by-anthropic-s-ai-tool-jefferies-sees-more-pain-ahead

* Nifty IT index dropped 1%, extending a 7% decline over two sessions.
* AI competition concerns after Anthropic's legal AI tool launch hit IT stocks
* Jefferies warns AI could erode IT firms' application services revenue

<a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/infosys/IT">Infosys</a>The shares of IT companies extended decline for the second consecutive session on February 5 amid concerns that artificial intelligence can intensify competition after Anthropic's launch of a legal AI tool.

The <a href="https://www.moneycontrol.com/indian-indices/nifty-it-19.html">Nifty IT index</a> fell nearly 1 percent to 36,071.80, as seen at 1.04 pm on Thursday. The index has now fallen around 7 percent in just two sessions, recording biggest single-day fall for the index since March 2020 yesterday.
<h3><strong>IT stocks fall further:</strong></h3>
The IT stocks which declined up to 8 percent on February 4, declined up to 2 percent today so far, extending losses. Mphasis shares fell 2 percent, while heavyweight <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/infosys/IT">Infosys</a> and <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/hcltechnologies/HCL02">HCL Technologies</a> shares fell more than 1 percent each.

Coforge and <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/persistentsystems/PS15">Persistent Systems</a> shares fell nearly 1 percent each, while <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/wipro/W">Wipro</a>, Tech Mahindra, LTIMindtree and Tata Consultancy Services (<a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/tataconsultancyservices/TCS">TCS</a>) shares were trading in the red with marginal losses.
<h3><strong>Why are IT stocks falling today?</strong></h3>
Investors remained concerned that AI was creating more competition for software makers, after Anthropic’s launch of a legal tool for its Claude AI chatbot.

AI developer Anthropic launched plug-ins for its Claude Cowork agent last week that can automate tasks across legal, sales, marketing and data analysis. The move has triggered worries of an impending AI-fueled disruption of the data and professional services industry, which were once seen as major beneficiaries of the AI era, according to traders and analysts.
<h3><strong>What lies ahead?</strong></h3>
Jefferies in its latest note explained that Anthropic’s Cowork plug-ins highlight how AI could erode application services revenue, which accounts for 40–70 percent of IT firms’ topline. The international brokerage added that it sees "more pain ahead" for sector.

IT services firms face mounting growth pressure as AI threatens to chip away at core application service lines, Jefferies said, adding that AI will drag on IT firms' revenue growth over the next 1–2 years as deflation in legacy service revenues outweighs emerging AI-led opportunities.

“Anthropic launched new capabilities for its Cowork to the legal space, heightening competition,” Morgan Stanley analysts including Toni Kaplan wrote in a note on Thomson Reuters, as reported by Bloomberg. “We view this as a sign of intensifying competition, and thus a potential negative," they said.

“We're looking at a lot of software names that are seen as companies that may well be disrupted when we start to see the advancement of artificial intelligence. We're seeing a lot of software companies across the spectrum get hit,” Reuters quoted Art Hogan, chief market strategist at B. Riley Wealth, as saying.

Anthropic’s launch of advanced AI automation tools, which heightened concerns about potential disruption to traditional software and IT services models, prompted investors to reassess the extent to which generative AI could automate core outsourcing and software functions, triggering broad-based selling across global tech stocks and the Nifty IT index, said Ajit Mishra – SVP, Research, Religare Broking.

"While the sector’s fundamentals remain intact, near-term sentiment is likely to stay volatile as markets gauge the impact on demand and margins. Investors may be better off avoiding aggressive positions until clearer signs of stability emerge," he added.

Follow all <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-sensex-nifty-stare-at-muted-start-as-tech-sell-off-continues-to-drag-wall-street-even-as-us-trade-deal-lifts-mood-liveblog-13812077.html">LIVE updates</a> from the stock markets here.

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Use of Artificial Intelligence

Infosys, HCLTech, other IT stocks extend decline led by Anthropic's AI tool; Jefferies sees 'more pain ahead'

InfosysThe shares of IT companies extended decline for the second consecutive session on February 5 amid concerns that artificial intelligence can intensify competition after Anthropic's launch of a legal AI tool.

The Nifty IT index fell nearly 1 percent to 36,071.80, as seen at 1.04 pm on Thursday. The index has now fallen around 7 percent in just two sessions, recording biggest single-day fall for the index since March 2020 yesterday.
IT stocks fall further:
The IT stocks which declined up to 8 percent on February 4, declined up to 2 percent today so far, extending losses. Mphasis shares fell 2 percent, while heavyweight Infosys and HCL Technologies shares fell more than 1 percent each.

Coforge and Persistent Systems shares fell nearly 1 percent each, while Wipro, Tech Mahindra, LTIMindtree and Tata Consultancy Services (TCS) shares were trading in the red with marginal losses.
Why are IT stocks falling today?
Investors remained concerned that AI was creating more competition for software makers, after Anthropic’s launch of a legal tool for its Claude AI chatbot.

AI developer Anthropic launched plug-ins for its Claude Cowork agent last week that can automate tasks across legal, sales, marketing and data analysis. The move has triggered worries of an impending AI-fueled disruption of the data and professional services industry, which were once seen as major beneficiaries of the AI era, according to traders and analysts.
What lies ahead?
Jefferies in its latest note explained that Anthropic’s Cowork plug-ins highlight how AI could erode application services revenue, which accounts for 40–70 percent of IT firms’ topline. The international brokerage added that it sees &quot;more pain ahead&quot; for sector.

IT services firms face mounting growth pressure as AI threatens to chip away at core application service lines, Jefferies said, adding that AI will drag on IT firms' revenue growth over the next 1–2 years as deflation in legacy service revenues outweighs emerging AI-led opportunities.

“Anthropic launched new capabilities for its Cowork to the legal space, heightening competition,” Morgan Stanley analysts including Toni Kaplan wrote in a note on Thomson Reuters, as reported by Bloomberg. “We view this as a sign of intensifying competition, and thus a potential negative,&quot; they said.

“We're looking at a lot of software names that are seen as companies that may well be disrupted when we start to see the advancement of artificial intelligence. We're seeing a lot of software companies across the spectrum get hit,” Reuters quoted Art Hogan, chief market strategist at B. Riley Wealth, as saying.

Anthropic’s launch of advanced AI automation tools, which heightened concerns about potential disruption to traditional software and IT services models, prompted investors to reassess the extent to which generative AI could automate core outsourcing and software functions, triggering broad-based selling across global tech stocks and the Nifty IT index, said Ajit Mishra – SVP, Research, Religare Broking.

&quot;While the sector’s fundamentals remain intact, near-term sentiment is likely to stay volatile as markets gauge the impact on demand and margins. Investors may be better off avoiding aggressive positions until clearer signs of stability emerge,&quot; he added.

Follow all LIVE updates from the stock markets here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

HAL shares recovered after clarifying five LCA Mk1A jets are ready for delivery., Stock fell 6 percent early but pared losses after HAL's delivery assurance., HAL received five engines from GE and expects to meet delivery guidance.

* HAL shares recovered after clarifying five LCA Mk1A jets are ready for delivery.
* Stock fell 6 percent early but pared losses after HAL's delivery assurance.
* HAL received five engines from GE and expects to meet delivery guidance.

HAL shares recovered nearly 3% after clarifying that five LCA Mk1A jets are ready for delivery, meeting contract specs. The stock had dropped over 9% in two sessions amid concerns about delivery delays but HAL assured it will meet its financial year guidance.

shorts/business/hal-shares-recover-3-from-day-s-low-as-psu-defence-firm-clarifies-5-lca-mk1a-aircraft-ready-for-delivery

* HAL shares recovered after clarifying five LCA Mk1A jets are ready for delivery.
* Stock fell 6 percent early but pared losses after HAL's delivery assurance.
* HAL received five engines from GE and expects to meet delivery guidance.

HAL shares on Wednesday recovered nearly 3 per cent from the day’s low after the state-run defence major clarified that five Light Combat Aircraft (LCA) Mk1A jets are ready for delivery.

In early trade, the stock of <a href="https://www.moneycontrol.com/india/stockpricequote/aerospacedefence/hindustanaeronautics/HAL">Hindustan Aeronautics Ltd</a> (HAL) fell 6.29 percent to an intraday low of Rs 3,952 on the NSE. The shares later pared losses and were trading at Rs 4,056.50 around 12.45 pm, down 3.81 percent.

The stock has been under pressure for the past two sessions and has declined over 9 percent during the period. On Wednesday, it opened with a gap-down of 2.28 percent.

The recovery followed a clarification issued by HAL on February 5, stating that five LCA Mk1A aircraft are fully ready for delivery and meet the specifications agreed under the contract.

"HAL wishes to clarify the status of LCA MK1A deliveries to the customer for all stakeholders. HAL confirms that five aircraft are fully ready for delivery, incorporating major contracted capabilities in accordance with the agreed specifications," the company said in a post on X.

The clarification came after an ET report said the delivery of the aircraft could miss another deadline and may be pushed beyond May.
<h3><a href="https://www.moneycontrol.com/news/business/companies/hal-says-5-lca-mk1a-aircraft-ready-for-delivery-after-report-claims-delay-13812329.html" target="_blank">HAL says 5 LCA MK1A aircraft 'ready for delivery' after report claims delay</a></h3>
HAL said it is in active discussions with the Indian Air Force to deliver the aircraft at the earliest and added that the supply position from engine maker GE is positive.

HAL has received five engines from GE as on date. The supply position from GE is positive, and the future delivery outlook aligns with HAL’s delivery plans. HAL assures that it will meet the guidance projected for the current financial year," it said.

<em><strong>Disclaimer:</strong> The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.</em>

A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.

HAL shares recover 3% from day's low as PSU defence firm clarifies 5 LCA MK1A aircraft 'ready for delivery'

HAL shares on Wednesday recovered nearly 3 per cent from the day’s low after the state-run defence major clarified that five Light Combat Aircraft (LCA) Mk1A jets are ready for delivery.

In early trade, the stock of Hindustan Aeronautics Ltd (HAL) fell 6.29 percent to an intraday low of Rs 3,952 on the NSE. The shares later pared losses and were trading at Rs 4,056.50 around 12.45 pm, down 3.81 percent.

The stock has been under pressure for the past two sessions and has declined over 9 percent during the period. On Wednesday, it opened with a gap-down of 2.28 percent.

The recovery followed a clarification issued by HAL on February 5, stating that five LCA Mk1A aircraft are fully ready for delivery and meet the specifications agreed under the contract.

&quot;HAL wishes to clarify the status of LCA MK1A deliveries to the customer for all stakeholders. HAL confirms that five aircraft are fully ready for delivery, incorporating major contracted capabilities in accordance with the agreed specifications,&quot; the company said in a post on X.

The clarification came after an ET report said the delivery of the aircraft could miss another deadline and may be pushed beyond May.
HAL says 5 LCA MK1A aircraft 'ready for delivery' after report claims delay
HAL said it is in active discussions with the Indian Air Force to deliver the aircraft at the earliest and added that the supply position from engine maker GE is positive.

HAL has received five engines from GE as on date. The supply position from GE is positive, and the future delivery outlook aligns with HAL’s delivery plans. HAL assures that it will meet the guidance projected for the current financial year,&quot; it said.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Devyani International, Westlife FoodWorld shares surged post Q3 earnings results, Devyani's Q3 revenue rose 11 percent; net loss narrowed sequentially, Westlife FoodWorld's Q3 profit dropped 85% YoY due to a one-time exceptional cost.

* Devyani International, Westlife FoodWorld shares surged post Q3 earnings results
* Devyani's Q3 revenue rose 11 percent; net loss narrowed sequentially
* Westlife FoodWorld's Q3 profit dropped 85% YoY due to a one-time exceptional cost.

Shares of Devyani International and Westlife FoodWorld surged after Q3 results. Devyani narrowed losses and added stores, while Westlife’s profit fell due to one-time costs but showed signs of recovery. Brokerages remain positive on both companies’ outlook.

shorts/business/qsr-stocks-devyani-up-9-despite-wider-q3-loss-westlife-foodworld-jumps-11-post-dec-quarter-results-here-s-why

* Devyani International, Westlife FoodWorld shares surged post Q3 earnings results
* Devyani's Q3 revenue rose 11 percent; net loss narrowed sequentially
* Westlife FoodWorld's Q3 profit dropped 85% YoY due to a one-time exceptional cost.

The shares of quick service restaurants (QSR) companies Devyani International and Westlife FoodWorld rallied in trade on February 5 after the companies announced their earnings for the October-December quarter of the ongoing financial year 2026.

Devyani International, which operates KFC and Pizza Hut outlets in India, saw its shares rally around 9 percent to a three-week high of Rs 133.84 apiece on Thursday.

The shares of Westlife FoodWorld, which operates McDonald's franchisees in India, rallied nearly 11 percent to Rs 528.90 apiece.
<h3><strong>Devyani International Q3 Results:</strong></h3>
Devyani International on February 4 reported a consolidated net loss of Rs 10.39 crore for Q3 FY26, as compared to a net loss of Rs 49.20 lakh in the same quarter of the previous financial year. The firm’s net loss however narrowed sequentially from the Rs 21.9 crore reported in Q2 FY26.

The company’s revenue from operations rose more than 11 percent to Rs 1,440.9 crore during the quarter under review.

<a href="https://www.moneycontrol.com/india/stockpricequote/consumer-food/devyaniinternational/DI06">Devyani International</a> reported 95 net new store additions in the quarter, with 54 net additions to KFC India and 18 net additions to Pizza Hut. “We have also started the process of turnaround of the Pizza Hut business by rationalizing loss-making stores. Our idea is to bring a sharper focus to this exercise and therefore we will open new stores only to compensate for the closure of loss-making stores. This will also help us to utilize the existing assets and equipment in our new stores and bring down the capex for the new openings as well,” said Devyani International Non-Executive Chairman Ravi Jaipuria.

“DIL is at a critical inflection point in its growth journey, as we prepare to scale into a larger, more diversified and more complex organization. The Board believes that this next phase requires a bold strategic vision, backed by strong execution capability. Accordingly, Manish Dawar shall get elevated as President and CEO for DIL with effect from April 1, 2026,” he added.

The company had announced the results in the market hours of Wednesday. The stock had jumped more than 6 percent yesterday, and is extending gains today.

JPMorgan remained ‘overweight’ on the stock, with a target price of Rs 155 apiece. It said that the firm’s EBITDA beat estimates on better margins. It added that same-store sales trends improved sequentially, turning positive in January for most formats.

Goldman Sachs kept a ‘Buy’ call on the stock, with a target price of Rs 160 apiece. The international brokerage flagged positive January same-store sales but said it is "too early" to call it a sustained recovery.

UBS kept a ‘Buy’ call on the stock, with a target price of Rs 170 apiece. The international brokerage sees an "emerging turnaround" for the company, helped by pricing, promotions and product interventions. It added that improving profitability in KFC and a rationalised Pizza Hut network could aid growth.
<h3><strong>Westlife FoodWorld Q3 Results:</strong></h3>
<a href="https://www.moneycontrol.com/india/stockpricequote/hotel-resortrestaurants/westlifefoodworld/DIC">Westlife FoodWorld</a> on February 5 reported a consolidated net profit of Rs 1.02 crore for the October-December quarter of the ongoing financial year 2026. This marks an 85 percent YoY fall from the Rs 7.01 crore net profit reported in the same period of the previous financial year.

The earnings were however impacted by a one-time exceptional cost of Rs 9.69 crore arising out of the new labour codes which took effect last year.

“Amidst an ongoing challenging operating environment, the company prioritized driving affordability through its value platform while maintaining strict execution discipline. Westlife reported revenue of ₹6.71 billion for Q3 FY26, at the back of recovering guest counts. Same Store Sales Growth (SSSG) was at -3.2% for the quarter. However, positive momentum carried into January, with positive SSSG driven by a mid-single digit increase in guest counts,” the firm said.

Brokerage BOB Capital Markets says WEST is at early stages of a guest-count-led recovery, driven by sharper everyday value proposition and improved dine-in execution.

Macquarie said that the company saw positive same-store-sales growth on a mild single-digit drop in guest counts in January as it focused on affordability and product innovations. JPMorgan meanwhile noted that McDelivery platform has seen strong growth supported by customer acquisition and growth investments, seeing significant traction in December and January.

Follow all <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-sensex-nifty-stare-at-muted-start-as-tech-sell-off-continues-to-drag-wall-street-even-as-us-trade-deal-lifts-mood-liveblog-13812077.html">LIVE updates</a> from Q3 Results here.

<em>Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.</em>

QSR stocks: Devyani up 9% despite wider Q3 loss; Westlife Foodworld jumps 11% post-Dec quarter results; here's why

The shares of quick service restaurants (QSR) companies Devyani International and Westlife FoodWorld rallied in trade on February 5 after the companies announced their earnings for the October-December quarter of the ongoing financial year 2026.

Devyani International, which operates KFC and Pizza Hut outlets in India, saw its shares rally around 9 percent to a three-week high of Rs 133.84 apiece on Thursday.

The shares of Westlife FoodWorld, which operates McDonald's franchisees in India, rallied nearly 11 percent to Rs 528.90 apiece.
Devyani International Q3 Results:
Devyani International on February 4 reported a consolidated net loss of Rs 10.39 crore for Q3 FY26, as compared to a net loss of Rs 49.20 lakh in the same quarter of the previous financial year. The firm’s net loss however narrowed sequentially from the Rs 21.9 crore reported in Q2 FY26.

The company’s revenue from operations rose more than 11 percent to Rs 1,440.9 crore during the quarter under review.

Devyani International reported 95 net new store additions in the quarter, with 54 net additions to KFC India and 18 net additions to Pizza Hut. “We have also started the process of turnaround of the Pizza Hut business by rationalizing loss-making stores. Our idea is to bring a sharper focus to this exercise and therefore we will open new stores only to compensate for the closure of loss-making stores. This will also help us to utilize the existing assets and equipment in our new stores and bring down the capex for the new openings as well,” said Devyani International Non-Executive Chairman Ravi Jaipuria.

“DIL is at a critical inflection point in its growth journey, as we prepare to scale into a larger, more diversified and more complex organization. The Board believes that this next phase requires a bold strategic vision, backed by strong execution capability. Accordingly, Manish Dawar shall get elevated as President and CEO for DIL with effect from April 1, 2026,” he added.

The company had announced the results in the market hours of Wednesday. The stock had jumped more than 6 percent yesterday, and is extending gains today.

JPMorgan remained ‘overweight’ on the stock, with a target price of Rs 155 apiece. It said that the firm’s EBITDA beat estimates on better margins. It added that same-store sales trends improved sequentially, turning positive in January for most formats.

Goldman Sachs kept a ‘Buy’ call on the stock, with a target price of Rs 160 apiece. The international brokerage flagged positive January same-store sales but said it is &quot;too early&quot; to call it a sustained recovery.

UBS kept a ‘Buy’ call on the stock, with a target price of Rs 170 apiece. The international brokerage sees an &quot;emerging turnaround&quot; for the company, helped by pricing, promotions and product interventions. It added that improving profitability in KFC and a rationalised Pizza Hut network could aid growth.
Westlife FoodWorld Q3 Results:
Westlife FoodWorld on February 5 reported a consolidated net profit of Rs 1.02 crore for the October-December quarter of the ongoing financial year 2026. This marks an 85 percent YoY fall from the Rs 7.01 crore net profit reported in the same period of the previous financial year.

The earnings were however impacted by a one-time exceptional cost of Rs 9.69 crore arising out of the new labour codes which took effect last year.

“Amidst an ongoing challenging operating environment, the company prioritized driving affordability through its value platform while maintaining strict execution discipline. Westlife reported revenue of ₹6.71 billion for Q3 FY26, at the back of recovering guest counts. Same Store Sales Growth (SSSG) was at -3.2% for the quarter. However, positive momentum carried into January, with positive SSSG driven by a mid-single digit increase in guest counts,” the firm said.

Brokerage BOB Capital Markets says WEST is at early stages of a guest-count-led recovery, driven by sharper everyday value proposition and improved dine-in execution.

Macquarie said that the company saw positive same-store-sales growth on a mild single-digit drop in guest counts in January as it focused on affordability and product innovations. JPMorgan meanwhile noted that McDelivery platform has seen strong growth supported by customer acquisition and growth investments, seeing significant traction in December and January.

Follow all LIVE updates from Q3 Results here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Trent's Q3 net profit rose 2.73 percent to Rs 510.11 crore., Revenue grew 14.78 percent; 65 new stores opened in the quarter., Brokerages remain mixed on Trent's outlook due to SSSG pressure.

* Trent's Q3 net profit rose 2.73 percent to Rs 510.11 crore.
* Revenue grew 14.78 percent; 65 new stores opened in the quarter.
* Brokerages remain mixed on Trent's outlook due to SSSG pressure.

Trent shares rose after reporting a 2.73% profit increase and 14.78% revenue growth for Q3 FY26, driven by new store openings. Brokerages remain mixed, citing stable margins but concerns over same-store sales growth and future demand.

shorts/business/trent-shares-up-2-on-rise-in-q3-net-profit-brokerages-remain-mixed-say-sssg-growth-pressure-may-persist

* Trent's Q3 net profit rose 2.73 percent to Rs 510.11 crore.
* Revenue grew 14.78 percent; 65 new stores opened in the quarter.
* Brokerages remain mixed on Trent's outlook due to SSSG pressure.

Trent shares traded higher on Thursday after the Tata Group retail firm reported a rise in consolidated net profit for the December quarter of FY26, even as brokerages remained mixed on the outlook, flagging pressure on same-store sales (SSSG) growth.

The company posted a 2.73 percent increase in consolidated net profit at Rs 510.11 crore for the October-December quarter, compared with Rs 496.54 crore in the year-ago period. The modest growth came amid improved demand following tax cuts, partly offset by a one-time labour-related charge.

Trent reported an exceptional item (net loss) of Rs 26.11 crore during the quarter due to the implementation of new Labour Codes.

Shares of <a href="https://www.moneycontrol.com/india/stockpricequote/retail/trent/T04">Trent</a> were trading at Rs 4,099.10 pe share on the NSE, up 2.16 percent, around 11:20 am.

Revenue from operations rose 14.78 percent to Rs 5,345.06 crore in the December quarter, from Rs 4,656.56 crore a year earlier, the company said.

"The gross margin profile of Westside and Zudio remains stable. Operating EBIT margin for Q3FY26 was 13.8 percent, compared with 13.2 percent in Q3FY25," Trent said.

During the quarter, the company opened 17 Westside and 48 Zudio stores, taking the total store count to 278 Westside and 854 Zudio outlets as of December 31, 2025. This includes four Zudio stores in the UAE. Trent also operates 32 stores across other lifestyle concepts.

As of December 31, the company had a presence across 274 cities, with a footprint of over 15 million square feet and a portfolio of more than 1,100 large-format fashion stores.

Brokerages maintained a mixed stance on the stock. Bernstein, which has an ‘Outperform’ rating with a price target of Rs 5,000, said Trent’s growth rebound is still unfolding, with store additions, rather than like-for-like sales, expected to drive performance in the coming quarters. HSBC retained a ‘Buy’ rating with a target price of Rs 5,300, citing expected margin gains by FY27 led by sourcing efficiencies and cost optimisation.

Kotak, however, maintained a ‘Reduce’ rating with a fair value of Rs 3,850, warning that pressure on same-store sales growth may persist through FY26 due to soft demand and higher costs. It expects only moderate revenue growth into FY27.

Commenting on the results, Chairman Noel N Tata said the fashion business registered category-leading growth during the quarter. "Customer sentiment is gradually improving and our business outlook for the medium term continues to remain positive. Our focus remains on portfolio growth, improving products and enhancing store experience," he said.

He added that the company remains committed to strengthening its direct-to-customer business across segments, supported by its focus on relevance and resilience in its business model.
<h3><em>(Inputs from Reuters)</em></h3>
<em><strong>Disclaimer:</strong> The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.</em>

Trent shares up 2% on rise in Q3 net profit; brokerages remain mixed, say 'SSSG growth pressure may persist'

Trent shares traded higher on Thursday after the Tata Group retail firm reported a rise in consolidated net profit for the December quarter of FY26, even as brokerages remained mixed on the outlook, flagging pressure on same-store sales (SSSG) growth.

The company posted a 2.73 percent increase in consolidated net profit at Rs 510.11 crore for the October-December quarter, compared with Rs 496.54 crore in the year-ago period. The modest growth came amid improved demand following tax cuts, partly offset by a one-time labour-related charge.

Trent reported an exceptional item (net loss) of Rs 26.11 crore during the quarter due to the implementation of new Labour Codes.

Shares of Trent were trading at Rs 4,099.10 pe share on the NSE, up 2.16 percent, around 11:20 am.

Revenue from operations rose 14.78 percent to Rs 5,345.06 crore in the December quarter, from Rs 4,656.56 crore a year earlier, the company said.

&quot;The gross margin profile of Westside and Zudio remains stable. Operating EBIT margin for Q3FY26 was 13.8 percent, compared with 13.2 percent in Q3FY25,&quot; Trent said.

During the quarter, the company opened 17 Westside and 48 Zudio stores, taking the total store count to 278 Westside and 854 Zudio outlets as of December 31, 2025. This includes four Zudio stores in the UAE. Trent also operates 32 stores across other lifestyle concepts.

As of December 31, the company had a presence across 274 cities, with a footprint of over 15 million square feet and a portfolio of more than 1,100 large-format fashion stores.

Brokerages maintained a mixed stance on the stock. Bernstein, which has an ‘Outperform’ rating with a price target of Rs 5,000, said Trent’s growth rebound is still unfolding, with store additions, rather than like-for-like sales, expected to drive performance in the coming quarters. HSBC retained a ‘Buy’ rating with a target price of Rs 5,300, citing expected margin gains by FY27 led by sourcing efficiencies and cost optimisation.

Kotak, however, maintained a ‘Reduce’ rating with a fair value of Rs 3,850, warning that pressure on same-store sales growth may persist through FY26 due to soft demand and higher costs. It expects only moderate revenue growth into FY27.

Commenting on the results, Chairman Noel N Tata said the fashion business registered category-leading growth during the quarter. &quot;Customer sentiment is gradually improving and our business outlook for the medium term continues to remain positive. Our focus remains on portfolio growth, improving products and enhancing store experience,&quot; he said.

He added that the company remains committed to strengthening its direct-to-customer business across segments, supported by its focus on relevance and resilience in its business model.
(Inputs from Reuters)
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Around 198 companies are announcing their earnings for the October-December quarter of the ongoing financial year 2026 today. Some of the notable names among them include AAVAS Financiers, Anthem Biosciences, Berger Paints India, Bharti Airtel, Bharti Hexacom, Black Buck, Data Patterns (India), Dhanuka Agritech, Eveready Industries India, Godrej Properties, Goodyear India, Hero MotoCorp, Hindustan Copper, Indian Oil Corporation (IOC), JM Financial, Kaynes Technology India, Life Insurance Corporation of India (LIC), Max Healthcare Institute, Mazagon Dock Shipbuilders, Minda Corporation, NCC, FSN E-Commerce Ventures (Nykaa), Page Industries, Hitachi Energy India, PVR Inox, Rail Vikas Nigam (RVNL), Suzlon Energy, Thomas Cook (India), Tata Motors Passenger Vehicles and UNO Minda.

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Earnings Review-Q3 FY25-26

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Automobile - Tractors Industry StocksCheck latest stock performance, list of stocks, earnings review & more details about the Automobile - Tractors industry stocks.

Gainers/Losers

Industry Market Map

Earnings Review-Q3 FY25-26

Stock News

Infosys, HCLTech, other IT stocks extend decline led by Anthropic's AI tool; Jefferies sees 'more pain ahead'

HAL shares recover 3% from day's low as PSU defence firm clarifies 5 LCA MK1A aircraft 'ready for delivery'

QSR stocks: Devyani up 9% despite wider Q3 loss; Westlife Foodworld jumps 11% post-Dec quarter results; here's why

Trent shares up 2% on rise in Q3 net profit; brokerages remain mixed, say 'SSSG growth pressure may persist'

IOC Q3 Results LIVE: Net profit jumps multi-fold to Rs 12,126 crore, shares up 1%

Automobile - Tractors Industry Stocks
Check latest stock performance, list of stocks, earnings review & more details about the Automobile - Tractors industry stocks.