Trent shares fall 8% after revenue growth stays flat sequentially; brokerage outlook mixed

Trent share price

• Trent shares dropped 8% after Q3 FY26 results missed revenue growth estimates.
• Q3 revenue rose 17 percent YoY to Rs 5,220 crore; store count up 28 percent YoY
• HDFC Securities upgraded Trent to 'Add' with a target of Rs 4,700 per share.

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The shares of Zudio and Westside-parent Trent tumbled 8 percent in the early trading hours of January 6 after the company released provisional results for the third quarter of the ongoing financial year 2026.

The Tata Group company's shares fell to Rs 4,060 apiece on Tuesday, snapping a four-session gaining streak. The stock has emerged the top loser on the benchmark indices Sensex and Nifty.

The sharp fall in the share price wiped off Rs 13,146 crore from Trent's market cap in just five minutes since opening on Tuesday.

Trent Q3 business update:

Trent released its business update for the October-December quarter of FY26 in the post market hours of January 5. The company reported standalone revenue from sale of products at Rs 5,220 crore during the quarter. This marks a 17 percent year-on-year (YoY) rise from the Rs 4,466 crore reported in the same period of the previous financial year.

Notably,  the Zudio and Westside-parent’s revenue from operations had risen more than 17 percent YoY to Rs 4,724 crore during Q2 FY26, same as the revenue growth reported in Q3.

The company’s revenue from sale of products in the 9 months ended on December 31 (April-December) meanwhile rose 18 percent YoY to Rs 14,604 crore, up from Rs 12,368 crore in the year-ago period.

At the end of Q3 FY26, Trent had 278 Westside stores, 854 Zudio (including 4 in UAE) and 32 stores across other lifestyle concepts. During the quarter, the company opened 17 new Westside stores, and 48 new Zudio stores.

Motilal Oswal on Trent:

Motilal Oswal Financial Services noted that the revenue growth reported by Trent is lower than the 20 percent revenue growth estimated by the brokerage. It however noted that the revenue growth remained steady at 17 percent YoY after several quarters of revenue growth deceleration.

Revenue growth is primarily driven by an approximately 28 percent YoY increase in store count, with revenue per store declining around 11 percent YoY, indicating continued cannibalization in store-level sale, it added.

“Trent’s stock price had run up in the last few days (up ~9% since 19th Dec’25) on expectations of a pick-up in revenue growth. A weaker-than-expected number could weigh on the recent stock price recovery as earnings downgrades are likely to continue in the near term,” Motilal said, while keeping a ‘Buy’ call on the stock.

Antique Stock Broking on Trent:

Antique Stock Broking flagged moderating growth on high base and unfavourable demand. It cut its target price for the stock to Rs 5,700 apiece from Rs 6,650 apiece, while maintaining its 'Buy rating on optimism that the company can steer high competition on a medium-to-long term basis.

The latest target price implies an upside potential of more than 50 percent from the stock's previous closing price.

Morgan Stanley however remained 'Overweight' on the stock, saying that the growth is more or less in line with its estimated 18 percent YoY rise

Trent's revenue growth has beaten Citi's 15.3 percent rise expectations. Higher store additions drive revenue, the brokerage said, adding that it remains cautious due to competition and weak revenue per sq ft trend. It has maintained its 'Sell' rating with a target price of Rs 4,350 apiece.

HDFC Securities on Trent:

HDFC Securities upgraded Trent shares to 'Add', with a target price of Rs 4,700 apiece. This implies an upside potential of more than 6 percent from the stock's previous closing price.

"Trent remains a top-class franchise. A combination of healthy inputs for future operational KPIs (SSSG and store expansion) and a c.50% valuation cut (117x FY28 P/E to 60x FY28 P/E) underpins our decision to upgrade Trent to an ADD rating with an SOTP-based TP of 4,700/share," it said.

Trent share price:

Trent shares have fallen around 3 percent in the past five days, and more than 25 percent in the past six months. The stock declined more than 41 percent in the past one year, after rising 492 percent in the past five years.

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