Trent Ltd has entered the new year on a dull note, coming immediately after its stock ended up as Nifty50’s worst performer in 2025. The shares had plummeted 40% in 2025 and have dropped by another 7% in 2026 so far.
For some time now, investors have been concerned about the retailer’s moderating sales growth on a higher base, amid muted consumer demand and increasing competitive intensity.
The recently released December quarter (Q3FY26) business update brings no cheer, showing that Trent’s standalone revenue growth has declined by17% year-on-year.
It may be comforting for some investors that growth has remained steady compared to Q2, which was the fifth consecutive quarter of revenue decline.
Bernstein’s analysts said in a 6 January report that Trent’s Q3 growth was lower than their expectations, adding, “On the positive side, the revenue growth seems to have found bottom.” According to Bernstein, Trent needs to clock 33% revenue growth in Q4 to meet FY26 projections, “which looks highly unlikely as of now.”
Broader expectations were that Q3 would mark an improvement in growth. “17% growth is slightly weaker versus our last published estimate of 20% year-on-year growth,” said Motilal Oswal Financial Services.
“Revenue growth is primarily driven by about 28% year-on-year increase in store count, with revenue per store declining around 11% year-on-year (versus about 9% year-on-year fall in H1FY26), indicating continued cannibalization in store-level sales,” elaborated the Motilal Oswal report.
On a net basis, Trent opened 17 new Westside stores and 48 Zudio stores last quarter, taking the total count as on 31 December to 278 and 854, respectively. Westside is Trent’s key fashion retail stores concept, while Zudio is its value fashion stores concept. Store additions are a factor investors will closely watch ahead, and they have a bearing on growth.
For the stock, there is little respite in the near term. Weaker-than-expected growth in Q3 may well mean earnings downgrades would continue.
In the near term, margins will be in the spotlight when Q3 results are announced. Beyond that, the stock’s fortunes are pretty much tied to growth.
