Trent share price crashes 19% after revenue growth moderation in Q4FY25

Trent was trading at ₹4,533.55, down 18.50 per cent from Friday's close of ₹5,562.85 on the National Stock Exchange

Shares of Tata Group’s fashion retail firm Trent crashed 19.23 per cent on Monday to hit an intraday low of ₹4,491.75 apiece after the company shared its March 2025 quarter (Q4 FY25) business update.  

At 10:45 AM, the stock was quoting at ₹4,533.55 per share, down 18.50 per cent from Friday’s close of ₹5,562.85 on the National Stock Exchange (NSE). The stock is down over 45 per cent from its 52-week high of ₹8,345, which it touched on October 14, 2024. By comparison, the benchmark Nifty50 index was trading at 21,985.50 level, down 918.95 points or 4.01 per cent. 

In Q4FY25,Trent said its standalone revenue, provisionally, was estimated at ₹4,334 crore, up 28 per cent from ₹3,381 crore in the year-ago period. For FY25, the company posted a standalone revenue of ₹17,624 crore, up 39 per cent from ₹12,669 crore in the previous financial year (FY24).

  Revenue growth in Q4FY25, however, is sharply lower than the 36 per cent revenue growth logged in the previous quarter of FY25 (Q3FY25) which, analysts said, could be due to a further moderation in same-store sales growth (SSSG) (from a high single digit in Q3FY25).

 

Trent’s annualised revenue per store in Q4FY25 was flat Y-o-Y at ₹16.8 crore, compared with an 8 per cent growth in Q3FY25.   Trent's store addition in Q4  As on March 31, 2025, the company’s store portfolio included 248 Westside, 765 Zudio (including 2 in UAE) and 30 stores across other lifestyle concepts, according to the statement.

  Individually, Trent opened 40 Westside stores and consolidated 24 stores to achieve 16 net store additions in FY25. Meanwhile, the company opened 244 Zudio stores and consolidated 24 stores to achieve 220 net store additions in FY25. 

  Brokerage firm Motilal Oswal Financial Services has a 'Buy' rating on the stock, with a target price (TP) of ₹6,800 per share.  In March this year, Macquarie had initiated coverage on Trent with ‘Outperform’ rating and a target price of ₹7,000. "Trent's proven ability to balance fashion risk with profitability through frequent style drops, and its expansion through owned/franchisee stores, have aided its performance. Over FY23-25, Trent sales increased at a 45 per cent CAGR (compound annual growth rate), steady margin expansion and a three-time RoCE (Return on Capital Employed) expansion to 30 per cent. Trent leads fashion retailers (including Fast Retailing) in Asia, with superior inventory days and return profile,” the report said.

 

According to Macquarie, Trent’s supply chain strengths and design capabilities, built with years of experience in Indian design sensibilities/fabric sourcing, are difficult to replicate. Competitive concerns about Shein's entry are overblown, as it would be difficult for Shein to replicate its China production cost advantage with an India-based supply chain, the report added.