- Trent shares slipped 2.5% to ₹3,050 on the NSE in early trade ahead of the Q1 FY27 earnings announcement.
- Trent reported a net profit of ₹532 crore for Q1 FY27, marking a 26% increase year-on-year from ₹423 crore.
- Revenue from operations increased by 18.5% to ₹5,666 crore in Q1 FY27 compared to ₹4,781 crore in the same quarter last year.
- Trent's operating margin improved to 12.9%, while the net profit margin stood at 9.4%.
- Trent's expansion strategy included opening one Westside and 22 Zudio stores, increasing its total store count to 1,312.
- Emerging categories like beauty and personal care contributed over 21% of Trent's revenues during the quarter.
Trent Ltd reported a 26% increase in net profit to ₹532 crore for Q1 FY27, up from ₹423 crore a year earlier. The company's revenue from operations rose 18.5% to ₹5,666 crore, compared to ₹4,781 crore in Q1 FY26.
Despite these strong results, shares fell 2.5% to ₹3,050 as analysts noted that the 19% year-on-year revenue growth was below market expectations, which were in the low-to-mid twenties. According to CITI, Trent's revenue growth was below its estimate of 23% and reflected a decline in average revenue per square foot of 12.2% year-on-year.
The company also reported an operating margin of 12.9% and a net profit margin of 9.4%. During the quarter, Trent expanded its retail footprint, opening one Westside and 22 Zudio stores, bringing its total store count to 1,312.
Emerging categories like beauty and personal care contributed over 21% of revenues, while online sales accounted for over 6% of Westside's revenue. Despite the challenges, Chairman Noel N Tata expressed confidence in the company's growth trajectory, aiming to become ten times larger in revenue in the future.7
Trent's stock performance reflects investor caution, as analysts predict that growth moderation may impact near-term performance, despite a positive outlook on consumer demand.
“The retailer's standalone operating margin improved to 12.9%, while net profit margin stood at 9.4%. Trent also completed a 1:2 bonus share issue, increasing paid-up equity capital to Rs 53.3 crore from Rs 35.6 crore.”
