Trent slides 6% to lowest since June 2024 on weak demand after soft Q2

Trent shares fell to the lowest level in 16 months after analysts flagged a weak demand environment for the company's growth in key metrics

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Shares of Trent Ltd. fell to the lowest level in 16 months, declining over 6 per cent on Monday, as analysts flagged a weak demand environment for the lifestyle retailer's muted growth in key metrics in the September quarter.  

 

The Tata Group company's stock fell as much as 6.5 per cent during the day to ₹4,326.4 per share, the biggest intraday fall since July 4 this year. The stock pared losses to trade 5.5 per cent lower at ₹5,374 apiece, compared to a 0.21 per cent advance in Nifty 50 as of 9:30 AM. 

 

Shares of the company fell for the second straight session and currently trade at 3.3 times the average 30-day trading volume, according to Bloomberg. The counter has risen 39 per cent this year, compared to an 8 per cent advance in the benchmark Nifty 50. Trent has a total market capitalisation of ₹1.54 trillion. 

Trent Q2 results 

Fashion and lifestyle retailer Trent on Friday reported an 11.3 per cent year-on-year (Y-o-Y)  rise in its consolidated net profit for the second quarter of 2025-26 (Q2FY26). Its revenue from operations rose 15.9 per cent to ₹4,817.68 crore in Q2 compared to the same period last year.

 

Its net profit on a consolidated basis stood at ₹376.86 crore in the second quarter. Its profit before interest, depreciation and tax stood was up 21.1 per cent at ₹843.53 crore in Q2. 

 

Trent said its consolidated revenues doesn’t include revenues of the Trent Hypermarket business. However, the reported results include the proportionate share of profitability of this venture and are accounted for based on the equity method. 

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Analysts on Trent earnings 

Motilal Oswal said that Trent’s growth has slowed sharply in recent quarters due to weak like-for-like (LFL) sales amid a subdued demand environment. However, the company continues to maintain strong cost controls, supporting healthy Ebitda growth. The brokerage said revenue growth acceleration remains a key trigger and reiterated its 'Buy' rating on the stock with a revised target price of ₹6,000.

 

Antique Stock Broking noted that Trent reported second-quarter profitability ahead of expectations, driven by a 17 per cent growth in revenue. However, LFL sales were affected by muted consumer sentiment and unseasonal rains, the report said. The new Goods and Services Tax (GST) regime encouraged customers to purchase higher-value products, benefiting from greater tax reductions. Demand for small-ticket discretionary lifestyle products is expected to improve over the medium term, Antique said. 

 

The brokerage maintained its profitability estimates, citing operational efficiencies achieved by the management despite a subdued demand environment. It retained a ‘Buy’ rating with a revised target price of ₹6,650, down from ₹7,031 earlier.

 

Centrum Broling said that Trent’s second-quarter performance reflected a familiar trend, with revenue growth moderating but margins improving despite muted same-store sales growth. The company continues to seed newer formats to drive its next phase of expansion, it added. 

 

While Trent’s overall growth trajectory remains commendable, the pace has slowed on a high base. Centrum remains watchful for the next leg of growth driven by new formats, emerging businesses, and international operations. The brokerage maintained a 'Neutral' rating on the stock with a target price of ₹4,800.