Trent Ltd., the retail division of the Tata Group, fell by over 4% on April 23, even after robust fourth-quarter earnings. The share hit an intraday low of Rs. 4,252, as benchmark indices were also trading lower amid global uncertainty due to elevated crude oil prices and the Middle East conflict.
The stock has declined around 32% from its 52-week high of Rs. 6,261 on June 30, 2025.
Trent posted a strong operational performance in Q4FY26 with consolidated net profit of Rs. 413.10 crore, an increase of 32.57% from Rs. 311.60 crore in the previous year. The operations revenue increased 19.23% to Rs. 5,027.99 crore, as against Rs. 4,216.94 crore in the corresponding quarter of last year.
The quarterly EBITDA rose 44% to Rs. 653 crore YoY, whereas the full-year EBITDA stood at Rs. 2,702 crore, which increased by 25%.
The Chairman, Noel N. Tata, commented on the results and said the company delivered a resilient performance in FY26 despite macroeconomic and geopolitical challenges, supported by steady consumer demand and strong execution.
Another factor that has contributed to Trent’s growth is continuous store expansion. Throughout the quarter, the company acquired 23 Westside stores and 109 Zudio stores and entered 47 new cities. This growth plan has remained conducive to long-term revenue visibility, but it has also come with its short-term problems that could reduce productivity in the new markets.
Trent increased 28% in 1 month and 15% in 3 months; however, it fell 19% in the past year. Moreover, it has given a high return of 460% in the last 5 years.
The company also declared massive shareholder-friendly measures, such as its inaugural bonus issue in a 1:2 proportion and last dividend of Rs. 6 per share (600%). Also, Trent will issue up to Rs. 2,500 crore to finance the upgrades of stores, expansion of supply chains, and emergence of new categories.
The brokerage views on Trent are divided, as there is a show of both high growth potential and high valuation.
According to HDFC Securities, the company downgraded the stock to ADD with an SOTP-based TP of Rs. 4,500 as the upside is now limited after a >30% rally since it was last upgraded a month ago. The brokerage pointed out that although the growth in revenue was powered by store additions, like-for-like (LFL) growth remained in the single low digits.
Elara Capital, however, said, “The Rs. 25 billion 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, acceleration of fast fashion to newer markets and stable margins could trigger upside. It projects a CAGR of revenue exceeding 20% in FY28 with a target price of Rs. 4,800.
Motilal Oswal too is optimistic with a CAGR of revenue, EBITDA, and PAT of 21%, 22%, 11%, respectively, in FY26-28, and a Buy rating with a target price of Rs. 5,250.
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