Archive · 10 Nov 2025
Trent Shares Hit 52-Week Low Amid Decelerating Growth and Margin Concerns
Trent, a clothing store company, is having a harder time growing its sales.
For the fifth time in a row, its sales grew slower than before.
This happened because people are not buying as much, and the weather was unusual last quarter.
The company is opening new stores, especially smaller ones in less busy areas, which takes time to become popular.
However, they are doing a good job of controlling their costs, which helped their profits not drop as much as sales.
Some of their new clothing lines and online sales are doing well.
Even with these efforts, some experts are worried that the company might not get better quickly and have lowered their predictions for its future earnings.
The company's stock price dropped a lot recently because of these results, reaching its lowest point in a year.
Trent's revenue growth continued to slow in Q2 FY26, increasing 17% year-on-year to ₹4,724 crore, marking the fifth consecutive quarter of deceleration.
The company's fashion portfolio saw low single-digit like-for-like growth due to muted consumer sentiment and unseasonal rains impacting demand.
Despite gross margin contraction, reported EBITDA margin expanded to 17.2% due to cost control measures, including RFID technology, though profit after tax saw a modest 6.5% rise.
Trent expanded its store network, adding 13 Westside and 40 Zudio stores in Q2, with emerging categories contributing over 21% of revenue.
Shares of Trent hit a 52-week low of ₹4,262.60 on Monday, with analysts trimming earnings projections and expressing uncertainty about the pace of growth recovery.
- Who
- Trent Ltd, a Tata Group fashion and retail chain
- What
- Experienced decelerating revenue growth, hitting a 52-week low in share price, despite efforts to control costs and expand into new markets.
- When
- The latest results are for the September quarter (Q2 FY26), with the share price drop occurring on Monday, November 10th.
- Where
- India, with an expansion into tier 2/3 markets and some stores in the UAE.
- Why
- Slowing revenue growth, muted consumer sentiment, unseasonal rains, and uncertainties about the timeline for growth recovery in a competitive market.
Company Performance and Cost Management
Analyst Perspectives and Future Uncertainty
Revenue Growth and Demand
Company Performance and Cost Management
Revenue grew 17% year-on-year to ₹4,724 crore in Q2 FY26, but growth has decelerated for five consecutive quarters, with low single-digit like-for-like growth in fashion due to muted consumer sentiment and unseasonal rains.
Analyst Perspectives and Future Uncertainty
Analysts have trimmed earnings projections due to uncertainty on the timeline of growth recovery amid dull demand and stiff competition. Some believe cost-saving measures may not be sustainable.
Margin Performance
Company Performance and Cost Management
Reported EBITDA margin expanded 134 basis points to 17.2% due to cost control efforts like RFID technology reducing staff costs, despite a gross margin contraction.
Analyst Perspectives and Future Uncertainty
Despite improved EBITDA margins, a steep 65% rise in depreciation impacted profit after tax, which rose only 6.5% to ₹451 crore. Analysts question the sustainability of these margin improvements.
Expansion and Future Outlook
Company Performance and Cost Management
The company is expanding into tier 2/3 markets and emerging catchments, with net openings of 13 Westside and 40 Zudio stores in Q2. Emerging categories contributed over 21% of Q2 revenues.
Analyst Perspectives and Future Uncertainty
Analysts express uncertainty on whether the worst is over, leading them to stay on the sidelines. Higher capital expenditure may weigh on cash generation, and earnings-per-share estimates have been sharply reduced.
- Company Name
- Trent Ltd
- Stock Performance (Nov 10)
- Shares sank over 7% to a 52-week low of ₹4,262.60
- 52-Week High vs. Current
- Down 42% from ₹7,493.05 (Jan 3)
- Q2 FY26 Revenue
- ₹4,724 crore (17% YoY growth)
- Q2 FY26 Like-for-Like Fashion Growth
- Low single-digit
- Q2 FY26 EBITDA Margin
- 17.2% (up 134 bps YoY)
- Q2 FY26 Profit After Tax
- ₹451 crore (6.5% YoY growth)
- New Stores Opened (Q2 FY26)
- 13 Westside, 40 Zudio
- Total Stores (Sept 30)
- 261 Westside, 806 Zudio, 34 other lifestyle concepts
- Online Revenue Growth (Q2 FY26)
- 56% YoY
Sources
Trans & Rectifier Q2 results: 24% drop in net profit; Margins narrow to 11.15%
Transformers and Rectifiers shares tumble 20%: Two factors behind this sharp drop
Transformers & Rectifiers share price crashes 20% after weak Q2 results, extends 8-day losing streak
