Trent Q4 Results: Tata Group company Trent share price declined a little over 1% on Thursday, April 23, even after the company reported strong Q4 results. The fall comes on the back of overall weak sentiment on Dalal Street on rising crude oil prices and stalled peace talks between US and Iran.
The scrip fell as much as 1.2% to its day’s low of ₹4381.30 on BSE. Meanwhile, Sensex opened 533 points or 0.68% lower at 77,983.66, while Nifty 50 started the day 176 points or 0.72% lower at 24,202.35.
The company posted a consolidated net profit of ₹413.10 crore, compared with ₹311.60 crore in the same period last year, reflecting a 32.57% YoY growth. Revenue from operations stood at ₹5,027.99 crore in Q4 FY26, up from ₹4,216.94 crore in Q4 FY25, registering a growth of 19.23%. Meanwhile, operating EBITDA came in at ₹653 crore for the quarter and ₹2,702 crore for FY26, marking a growth of 44% YoY in Q4 and 25% for the full year.
Commenting on the results, Noel N Tata, Chairman of Trent, said the company delivered a resilient performance in FY26 despite macroeconomic and geopolitical challenges, supported by steady consumer demand and strong execution. From a financial standpoint, the company continues to see traction from its differentiated product mix and expanding brand portfolio, which is supporting revenue growth and margin improvement.
Trent Corporate Actions
On the corporate actions front, Trent, which owns fashion retail brands such as Westside and Zudio, announced its first-ever bonus issue along with its earnings and dividend.
The board approved a bonus issue in the ratio of 1:2, with one bonus share of Re 1 for every two fully paid-up equity shares held as of the record date, subject to approval.
The board also recommended a 600% dividend, or ₹6 per equity share of Re 1, subject to shareholder approval.
In addition, the company approved raising up to ₹2,500 crore through one or more tranches via equity issuance, rights issue, or other permitted modes, subject to necessary approvals.
Should you buy Trent stock?
After a strong rally and steady operational performance, Trent has drawn mixed views from brokerages, with growth visibility intact but valuations and near-term risks keeping upside in check. While store expansion and improving like-for-like (LFL) trends remain supportive, macro uncertainty and cautious consumer spending could influence the stock’s trajectory going forward.
HDFC Securities highlighted that Trent’s standalone revenue grew 20.2% YoY to ₹4,940 crore, largely driven by store additions, while LFL growth remained in low single digits for both Q4FY26 and FY26. The brokerage also flagged potential risks from geopolitical tensions and macroeconomic uncertainty, which could impact discretionary demand and cost structures.
“We have revised our FY27/28 APAT estimates by -1/+1% respectively; however, we downgrade the stock to ADD with an SOTP-based TP of ₹4,500 (including ~57x FY28 adj. P/E for standalone business and 2x FY28 EV/sales for Star), as the upside is now limited post a >30% rally since our last upgrade a month ago,” said HDFC Securities.
The company plans to raise ₹25 billion to upgrade existing stores, incubate new brands and categories, expand supply chain and warehouse capacity, scale automation initiatives, and accelerate the expansion of Star Bazaar, according to HDFC Securities.
Meanwhile, Elara Capital remains constructive on the long-term outlook, noting that revenue growth was in line with expectations, while margins saw an upside due to gross margin gains. The brokerage pointed out that LFL growth improved to low single digits in Q4 from slightly negative levels in Q3, and sustaining this trend will be a key monitorable.
“The ₹25bn rights issue is a monitorable, especially regarding allocation between automation, supply chain investments, and Star Bazaar expansion, where ROI needs to be assessed carefully. Faster adoption of fast fashion in newer markets and steady margins are potential upside triggers,” said Elara Capital.
Elara added that Trent offers a favourable growth outlook driven by strong store additions and improving LFL trends, providing visibility for a revenue CAGR of over 20% till FY28E. It expects margins to remain resilient despite softness in the value fashion segment and has maintained its ‘Accumulate’ rating with a target price of ₹4,800.
Overall, while Trent’s growth story remains intact, brokerages suggest that the sharp recent rally and evolving macro environment warrant a more measured approach from investors.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
