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

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• 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.

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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.

"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.

(Inputs from Reuters)

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