9 months ago
Trent's Q2 Profit and Revenue Miss Estimates Amid Rising Competition
Trent, which runs stores like Westside and Zudio, had a slower sales and profit growth in the last quarter compared to what people expected.
Sales went up by 16% and profits by about 11%, but this was less than usual for Trent and also not as much as market experts had predicted.
The company mentioned that people might be spending less, and there were some temporary issues with taxes that affected sales for many businesses.
Even with these challenges, Trent kept opening more stores, reaching over 1,100 locations across India.
They are also planning to sell all their shares in the company that runs Zara stores in India.
Trent's Q2 FY26 net profit rose 11.3% year-on-year to ₹377 crore, falling below Street estimates.
Consolidated revenue increased by 16% year-on-year to ₹4,818 crore, missing market expectations and its own growth target.
The company cited muted consumer sentiment and GST transitional issues as factors affecting performance.
Trent continued to expand its retail presence, with store count reaching 1,101 across 251 cities.
Trent's board approved tendering its entire stake in the Zara India joint venture (ITRIPL) under its share buyback program.
- Who
- Trent (Tata Group's retail arm)
- What
- Reported Q2 FY26 results with net profit of ₹377 crore (up 11.3% YoY) and revenue of ₹4,818 crore (up 16% YoY), both below market expectations. Also announced the tendering of its stake in the Zara India JV.
- Where
- India (operations across multiple retail formats including Westside, Zudio, Utsa, and Star Bazaar).
- When
- Second quarter of FY26 (ended September 30, 2025), results announced on Friday.
- Why
- Financial results were impacted by growing competition in apparel retail, muted consumer sentiment, and GST transitional issues. The company is continuing its store expansion strategy.
Trent's Strategic Moves
Financial Performance Challenges
Store Expansion vs. Growth Slowdown
Trent's Strategic Moves
Trent continued its aggressive store expansion, increasing its store count to 1,101 across 251 cities, focusing on tier II, III, and emerging catchments near metros.
Financial Performance Challenges
Despite adding stores, Trent's consolidated revenue saw its slowest growth in at least 16 quarters at 16%, falling short of its own target of 25% and street estimates. Net profit also missed street estimates.
Divestment from Zara JV vs. Financial Performance
Trent's Strategic Moves
Trent is tendering its entire stake in the Zara India joint venture (ITRIPL) as part of a share buyback, continuing its move to reduce its holding in the venture.
Financial Performance Challenges
The company's Q2 FY26 financial results showed consolidated revenue growth of 16% and a net profit increase of 11.3% YoY, both below market expectations, with muted consumer sentiment and GST transitional issues cited as contributing factors.
Key facts
- Company
- Trent (Tata Group retail arm)
- Reporting Period
- Quarter ended September 30, 2025 (Q2 FY26)
- Consolidated Net Profit
- ₹377 crore
- Year-on-Year Profit Growth
- 11.3%
- Consolidated Revenue
- ₹4,818 crore
- Year-on-Year Revenue Growth
- 16%
- EBITDA
- ₹817 crore
- EBITDA Margin
- 17.5%
- Physical Stores
- 1,101 stores across 251 cities
- Stake in Inditex Trent Retail India (ITRIPL)
- Tendering entire stake (currently 34.94%)
Timeline
Nykaa's profit nearly tripled last quarter.
Strong demand and own brands fueled the rise.
Then, sales grew with operational gains.
Earnings more than doubled in its beauty business.
Quotes
Trent
The company itself, providing an update in an investor presentation.
“We are adding presence in newer cities across tier two and three markets, as well as emerging catchments in the proximity of metro cities”
financialexpress.com
Sources
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