Trent shares sink 8% as Q3 results miss Street estimates; check details

Trent Q3 results: Westside and Zudio-owner Trent clocked a 33.9 per cent rise in consolidated net profit at Rs 496.54 crore

Trent Q3 results, Trent share: Investors booked profit in Trent shares today after the Tata Group company reported its December quarter results on February 6, 2025. On the bourses, Trent share price dropped 8.8 per cent to hit an intraday low of Rs 5,245 per share on the BSE.

 

Trent share price settled at Rs 5270, down 8.37 per cent, as against the BSE Sensex, which closed 0.28 per cent (216 points) lower at 78,055.17 on Thursday.

Trent Q3 results

During Q3FY25, Westside and Zudio-owner Trent clocked a 33.9 per cent rise in consolidated net profit at Rs 496.54 crore, compared to Rs 370.64 crore reported during the same period last year. The number was lower than Bloomberg's consensus estimate of Rs 507-crore profit. 

 

Its consolidated revenue from operations surged 34.3 per cent year-on-year (Y-o-Y) to Rs 4,656.56 crore from Rs 3,466.62 crore. The topline, too, missed Bloomberg's revenue estimate of Rs 4,760 crore.

 

Trent's Ebitda (earnings before interest, tax, depreciation, and amortisation), which improved 34.4 per cent Y-o-Y to Rs 838 crore, also missed Bloomberg estimate of Rs 865 crore.

 

At the end of the Q3FY25 quarter, Trent management said Westside's total store count was 238 and Zudio's was 635.

 

Trent share price target

Trent, a subsidiary of the Tata Group, is a leading player in India's retail industry and manages brands, Zudio and Westside. Zudio, as per analysts, is set to grow ahead of peers (though at a modest pace) despite intensifying competition, led by many moats, including a successful private label strategy, robust traction led by differentiated fashion, and prudent focus on product quality at reasonable price points and organic growth.

 

Zudio, they believe, shall continue to be the market leader in the fast fashion segment by a wide margin due to its edge. Westside, meanwhile, may continue to deliver a steady show.  ALSO READ: Bharti Airtel Q3 results: Net profit skyrockets 505% to Rs 14,781 crore

 

Analysts at Morgan Stanley have maintained their 'Overweight' rating on Trent stock with a share price target of Rs 8,032.

 

Those at Elara Capital, on the other hand, have initiated coverage on Trent stock with a 'Buy' rating.

 

"Trent's fashion portfolio has consistently outperformed peers on key parameters – Store size, revenue per sq ft/per store and Ebitda margin – by a wide margin (30-40 per cent versus the industry) along with leading headline growth. We expect this to sustain, led by firm focus on fundamentals such as product market fit, promising quality at reasonable price points, and faster design-to-shelf cycle," they said in a January 15 report.

 

Elara has assigned a share price target of Rs 8,500 to Trent, factoring-in revenue/Ebitda/adjusted net profit CAGRs of 27 per cent/29 per cent/38 per cent in FY24-28.