JKB Financial Services Ltd.

As on : 04-Jul-2025

Hot Pursuit
04-Jul-2025 13:41

Trent crashes as Q1 growth misses expectations

The Tata Group's retail arm reported a 20% year-on-year increase in standalone revenue, reaching Rs 5,061 crore in the June 2025 quarter. However, this growth fell short of the company's five-year compounded annual growth rate (CAGR) of 35%, raising questions about whether Trent can sustain its past performance.

The market reacted swiftly to the miss, with a domestic brokerage firm cutting its revenue growth estimates for FY26 and FY27 by 5% and 6% respectively. The brokerage also lowered EBITDA projections by 9% and 12% for the same period, citing slower-than-expected performance and margin concerns.

The brokerage further noted that the company's current growth run rate is below management's aspirational target of achieving 25% annual growth over the next few years.

Despite the miss, Trent continued to expand its retail footprint, adding 11 new Zudio stores and 1 Westside outlet during the quarter. As of 30th June 2025, its store portfolio included 248 Westside, 766 Zudio (including 2 in UAE) and 29 stores across other lifestyle concepts.

Trent is part of the Tata Group and operates a portfolio of retail concepts. The primary customer propositions of Trent include Westside, one of India's leading chains of fashion retail stores, Zudio, a one stop destination for great fashion at great value and Star, which operates in the competitive food, grocery and daily needs segment.

On a consolidated basis, Trent's net profit declined 54.82% to Rs 318.15 crore while net sales rose 27.88% to Rs 4216.94 crore in Q4 March 2025 over Q4 March 2024.

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