Trent, Reliance, and Aditya Birla Fashion & Retail leading the charge on strong earnings and expansion strategies
India’s retail sector continues to exhibit robust growth, driven by increasing consumer demand, digital transformation, and strategic expansions by key players. As of May 2025, several retail stocks have demonstrated strong financial performance and growth potential, making them attractive options for long-term investment.
1. Trent Ltd (Tata Group)
Trent Ltd, a Tata Group company, has shown remarkable growth in its apparel retail segment. In the fourth quarter of FY2025, the company reported an adjusted profit of ₹3.18 billion, more than doubling from the previous year, driven by strong sales and improved operating margins. Revenue from operations increased by 28% to ₹42.17 billion, with operating margins rising from 8.3% to 9.3%. The company’s strategy of targeting Gen-Z shoppers with trend-driven yet affordable clothing has contributed to impressive revenue growth of over 50% in fiscal years 2023 and 2024. Trent’s rapid expansion, including the opening of over 200 new Zudio stores in fiscal 2025, is expected to support continued revenue growth into fiscal 2026. The stock has tripled in value over the past two years and is now part of the Nifty 50 index.
2. Reliance Industries Ltd (Retail Segment)
Reliance Industries’ retail arm has been a significant contributor to the company’s overall performance. In the fourth quarter of FY2025, Reliance Industries reported a stronger-than-expected profit, with robust performance in its telecom and retail segments. The company’s shares rose by up to 3.4%, reaching their highest point since late October, and becoming the top percentage gainers on India’s benchmark Nifty 50 index. Analysts have responded positively, with several raising their price targets and upgrading their ratings. The retail segment’s growth is further supported by strategic partnerships, such as the joint venture with Israeli innerwear maker Delta Galil, aiming to enhance market reach in India through various channels, including retail, wholesale, and digital platforms.
3. Avenue Supermarts Ltd (DMart)
Avenue Supermarts, operating under the DMart brand, continues to be a dominant player in the Indian retail sector. As of April 29, 2025, the company’s stock price stood at ₹4,310, with a market capitalization of ₹284,162.12 crore. DMart’s focus on offering value-for-money products and maintaining efficient supply chain operations has contributed to its sustained growth. The company has consistently delivered strong financial performance, making it a reliable choice for long-term investors.
4. Aditya Birla Fashion & Retail Ltd
Aditya Birla Fashion & Retail Ltd has shown promising growth prospects in the retail sector. As of April 29, 2025, the company’s stock price was ₹268.2, with a market capitalization of ₹33,409.98 crore. The company operates a diverse portfolio of brands catering to various segments, including premium, casual, and ethnic wear. Its strategic initiatives and brand expansions position it well for sustained growth in the Indian retail market.
5. Varun Beverages Ltd
Varun Beverages, a key player in the beverage segment, has demonstrated strong growth potential. The company’s diversified product portfolio and extensive distribution network have contributed to its robust performance. As of early 2025, Varun Beverages was among the top stock picks, reflecting investor confidence in its growth trajectory.
The Indian retail sector offers a range of investment opportunities, with companies like Trent Ltd, Reliance Industries Ltd, Avenue Supermarts Ltd, Aditya Birla Fashion & Retail Ltd, and Varun Beverages Ltd demonstrating strong financial performance and growth potential. Investors seeking to capitalize on the sector’s growth may consider these stocks for their portfolios.
