Trent share price was down nearly 4% on the NSE and was trading at ₹5176.50 at 9.50 AM. This decline came after the Tata Group’s retail chain reported its slowest revenue growth in several quarters, raising concerns among investors.
In the quarter ending March 2025, Trent posted revenue of ₹4,217 crore, showing a 28% increase year-on-year. While this seems like healthy growth, it marks the slowest pace since FY21. If a one-time gain of ₹543 crore in the previous year is excluded, Trent’s adjusted profit for the quarter stands at ₹318.15 crore, up from ₹128 crore last year.
Despite the profit rise, the like-for-like (LFL) sales growth was only mid-single digits, lower than the high-single digits seen in the previous quarter. This impacted the operating leverage, even though EBIT margins improved by 100 basis points in Q4 FY25.
In FY25, Trent opened 40 new Westside stores and 244 Zudio stores, while also consolidating 24 stores each under both brands. As of March 31, the company has:
The company said it is now focusing on strengthening its store portfolio and increasing its market presence in high-potential areas. It aims to grow by focusing on micro markets, rather than relying only on older stores for performance.
Trent Ltd. is seeing a shift in its growth story. While profits are rising and the company is expanding aggressively, the slowing revenue growth and drop in like-for-like sales could be a challenge. Analysts are cautiously optimistic, but investors may want to watch how the company manages competition and demand in the coming quarters.
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Published on: Apr 30, 2025, 10:08 AM IST
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