Trent stock slips 15% from Sept high; what's making the Street nervous?

Shares of Trent, part of the Tata Group companies, dropped to a five-month low of ₹4,848, falling 3 per cent on the BSE in Tuesday's intra-day trade.

Trent share price today

 

Shares of Trent, part of the Tata Group that operates a portfolio of retail concepts, hit a five-month low of ₹4,848, falling 3 per cent on the BSE in Tuesday’s intra-day trade.  It was quoting lower for the fourth straight trading day, declining 7 per cent during the period.

 

The Trent stock has slipped 15 per cent from its month high of ₹5,674, touched on September 4, 2025. At present levels, Trent trades at its lowest level since April 2025. It had hit a 52-week low of ₹4,491.75 on April 7, 2025. The stock had hit a 52-week high of ₹8,345.85 on October 14, 2024.  READ STOCK MARKET UPDATES TODAY LIVE

What's making the Street nervous?

 

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.

 

Star, the supermarket concept offers a curated assortment of products including fast moving consumer goods (FMCG), staples and a comprehensive fresh offering (vegetables, fruits, dairy & non-vegetarian products). Star’s product portfolio is complemented by a compelling range of exclusive branded FMCG (Fabsta, Klia, Skye, Star), general merchandise (Smartle) and apparel (Zudio) products at attractive prices.

 

During the April to June 2025 quarter (Q1FY26), Trent Hypermarket (THPL), which operates the majority of Star stores, reported 20 per cent gross margin (vs. ~14 per cent for DMart), driven by its focus on improving the contribution from its private labels (reached 73 per cent revenue share vs. 67 per cent YoY).

 

However, THPL again slipped into the red with an operating loss of ₹12 crore, likely driven by a change in lease accounting (other expenses up 36 per cent YoY, while depreciation and interest costs declined sharply).   

Meanwhile, Trent's growth rate has moderated in the last few quarters, though still robust, amid a weak discretionary demand environment. Back-ended strong store additions in Zudio should drive growth in FY26. However, a recovery in SSSG across fashion and Star formats would be key near-term monitorable, analysts at Motilal Oswal Financial Services said in the Q1 result update.

 

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 new categories (Beauty, Innerwear, and LGDs).

 

Trent delivered a strong operating performance, supported by the calibrated expansion of Westside and Zudio, increasing penetration in the core consumption market and continued traction in private label categories. 

 

However, moderation in net new store addition and muted like-for-like growth in newer geographies may constrain near-term operational leverage. Nonetheless, the company’s execution discipline, omnichannel readiness and scale-driven efficiencies are expected to support steady long term growth, Geojit Investments said in the Q1 result update with ‘hold’ rating on the stock.

 

Meanwhile, reportedly, brokerage firm Kotak Institutional Equities maintained a ‘Reduce’ rating on Trent. Kotak cut its target price on Trent to ₹4,900 from ₹5,300 earlier. The brokerage wrote in its note that while the Goods and Services Tax (GST) cuts will have a positive impact, they apply to only a relatively small portion of Trent’s sales and may therefore have a limited effect on near-term revenue growth, CNBC TV18 reported. 

Analysts at Antique Stock Broking believe Trent is focused on scaling its organic brand portfolio, allowing for better operational control. Management’s continued focus on enhancing store experience, improving profitability, and return ratios, while scaling up operations, reflects a disciplined approach. The brokerage firm maintains our positive stance on Trent with a BUY recommendation and a target price of ₹7,031 based on SoTP valuation on 1HFY28 estimates.