Trent tanks 42% so far in 2025; set for first yearly decline in 12 years

In the past one month, Trent stock price has declined 12 per cent amid moderation in revenue growth\

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Trent share price today

 

Trent share price hit a 52-week low of ₹4,165.05 on the BSE today, falling 1.5 per cent in Wednesday's intraday trade. In the past one month, Trent shares have declined 12 per cent on persistent moderation in revenue growth. In comparison, the BSE Sensex has risen 1 per cent during the period.

 

Thus far in calendar year 2025, the Tata Group company, operating in a portfolio of retail concepts, has underperformed the market by falling 41 per cent as against an 8 per cent surge in the benchmark index. Trent stock is set to report its first calendar year decline in 12 years.

 

Earlier, in calendar year 2013, Trent's stock price had declined 3.5 per cent, BSE data shows. In the past two calendar years -- 2023 and 2024 -- Trent shares more than doubled investors wealth by soaring 126.30 per cent and 132.8 per cent, respectively, data shows.

 

Currently, Trent is trading at its lowest level since April 2024. The stock had hit an all-time high of ₹8,345.85 on October 14, 2024.  CATCH STOCK MARKET LIVE UPDATES TODAY

Why is the Tata Group stock underperforming the market?

 

Trent has seen selling pressure on Dalal Street as the company's revenue growth has been trailing Street expectations over the past few quarters.

 

In the first half (April to September) of the financial year 2025-26 (H1FY26), Trent's consolidated revenue reported an 18.4 per cent year-on-year (Y-o-Y) growth to ₹9,505.3 crore. The topline was hit by factors such as muted demand environment, newer addition of stores and expansion in Tier 2/3 towns, where growth trajectory remains tepid compared to other areas.

 

The company's gross margins declined by 97 basis points Y-o-Y to 44.2 per cent. However, earnings before interest, tax, depreciation and amortisation (Ebitda) margins improved 178bps Y-o-Y to 17.4 per cent, while Ebitda grew by 32 per cent Y-o-Y to ₹1,651 crore.

 

This aided various cost efficiency measures, leading to lower employee costs and stable rental costs, according to analysts at ICICI Securities.

 

"Store additions, however, led to higher depreciation which, coupled with lower other income, offset the growth in Ebitda. This led to 14 per cent Y-o-Y growth in adjusted PAT to ₹873.4 crore," the brokerage firm pointed out.

 

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.

 

Analysts at ICICI Securities have reduced their earnings estimates for FY26 and FY27 by 5 per cent and 10 per cent, respectively, to factor in lower Life-for-Like (LFL) growth than earlier factored-in and higher depreciation charges for high store addition. However, the company's strong business model, efficient supply chain, and lean balance sheet makes it one of the better players in the retail space, it added.   The brokerage has a 'Buy' rating on the stock with a share price target of ₹5,255 per share. 

"Trent's growth rate has decelerated sharply in the last few quarters due to weak LFL amid a subdued demand environment. However, the company continues to display strong cost controls to report healthy Ebitda growth," analysts at Motilal Oswal Financial Services said in their Q2 result update report.

 

The brokerage firm said they continue to like Trent for its robust footprint additions, strong double-digit growth, long runway for growth in Star (presence in just 10 cities), and potential scale-up of emerging categories (Beauty, Innerwear, Footwear, and LGDs). However, revenue growth acceleration remains a key trigger, it added.

 

It, too, has a 'Buy' rating on Trent stock with a target price of ₹6,000.

 

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