Trent shares drop 4% on Q2 update; analysts cautious, should you sell?

Morgan Stanley cut its price target on Trent, given the softer revenue growth in the coming quarters despite margin gains

Shares of Trent fell nearly 4 per cent on Tuesday after analysts gave mixed views, as the company reported a softer revenue growth for the September quarter.

 

The fashion retailer, Trent's stock fell as much as 3.9 per cent during the day to ₹4,590 per share, the biggest intraday fall since September 8 this year. The stock pared losses to trade 2.4 per cent higher at ₹4,663 apiece, compared to a 0.16 per cent advance in Nifty 50 as of 9:30 AM. 

 

Shares of the company fell to the lowest level since April 07 and currently trade at 2 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 35 per cent this year, compared to a 6.2 per cent advance in the benchmark Nifty 50. Trent has a total market capitalisation of ₹1.6 trillion.   CATCH STOCK MARKET LIVE UPDATES

 

Trent reports 17% YoY revenue growth in Q2 FY26

The Tata Group company reported a 17 per cent year-on-year (Y-o-Y) increase in standalone revenue to ₹5,002 crore in the second quarter of the financial year 2025-26 (Q2-FY26), compared to ₹4,260 crore in the same period last year.

 

For the first half of FY26 (H1 FY26), the company's revenue grew 19 per cent Y-o-Y to ₹10,063 crore, up from ₹8,488 crore in  H1 FY25. 

 

As of 30 September 2025, Trent’s retail portfolio comprised 261 Westside stores, 806 Zudio stores (including three in the UAE), and 34 outlets across other lifestyle concepts. During Q2 FY26, Trent opened 13 Westside stores and 40 Zudio stores on a net basis. In the first half of the fiscal year, the company added 13 Westside and 41 Zudio stores, underscoring its aggressive retail expansion strategy.  ALSO READ | Elecon Engineering rises 44% in six months; Emkay Global sees 25% upside

Analysts on Trent Q2 update

Morgan Stanley cut its price target, given the softer revenue growth in the coming quarters despite margin gains, according to Bloomberg. The forecasts for FY27 revenue of 8-10 per cent came in below the prior estimate on slower first-half growth, the brokerage said. 

 

Earnings per share were cut 9-10 per cent due to softer sales and higher depreciation, while Morgan Stanley lifted Ebitda margins by 85-95 basis points for fiscal 2026-27. 

 

However, the majority of Trent’s newly added Westside stores became operational in September, which is expected to contribute meaningfully to revenue in the coming quarters, Antique Broking said. It said that Trent continues to outperform peers, though the growth trend appears to be moderating due to a high base. 

 

The company remains well-positioned to navigate a competitive retail environment over the medium to long term. Antique Broking reiterated its 'Buy' rating on Trent with a target price of ₹7,031 per share. 

 

According to Motilal Oswal,  after a subdued expansion phase in the first quarter of FY26, Trent’s store addition momentum picked up in the second quarter. The brokerage noted that store additions typically accelerate in the second half of the fiscal year, and investor focus will be on Trent’s ability to further scale up its fashion retail footprint, as store expansion remains its key growth driver amid weakening same-store sales growth (SSSG).