1:2 Bonus + Rs. 6 Dividend: Tata Retail Stock Delivers Double Reward; Check Record date & Target Price

Shares of Tata Group retail major Trent Limited are in focus after the company announced big rewards for shareholders, including a 1:2 bonus issue and a final dividend of Rs. 6 per share for FY26.

Trent Shares Today

At the time of writing, Trent shares were trading at Rs. 4,232.00, up 0.68%, over the past month Trent shares have surged 28% giving a major return to investors.

Trent Bonus issue: Record date fixed for May 29

Trent Limited has fixed May 29, 2026 as the record date to determine shareholders eligible for its proposed bonus share issue. The company plans to issue bonus equity shares in the ratio of 1:2, meaning investors will receive one additional share for every two fully paid-up equity shares held as of the record date.

The bonus issue remains subject to necessary regulatory approvals and shareholder consent via postal ballot, the company said in its filing.

Dividend and fundraising plans

In addition to the bonus issue, the company's board has recommended a final dividend of Rs. 6 per share for FY26, subject to shareholder approval.

Trent has also approved an enabling resolution to raise up to Rs. 2,500 crore through a rights issue or other permissible routes. The capital raise is being done to fund expansion plans and strengthen the balance sheet.

Strong Q4 FY26 performance beats estimates

Trent's latest earnings beat the market estimates. According to its exchange filing, the company posted a 32.57% year-on-year surge in consolidated net profit to Rs. 413.1 crore in Q4 FY26, compared to Rs. 311.6 crore in the corresponding period last year, Revenue growth also remained healthy during the quarter. Revenue from operations rose 19.23% YoY to Rs. 5,027.99 crore, up from Rs. 4,216.94 crore reported in Q4 FY25.

The retail major also reported a 42.3% year-on-year jump in EBITDA to Rs. 927.8 crore.

Margins also saw a sharp expansion, rising to 18.5% from 15.5% a year ago, surpassing expectations of 16.8%.

As of March 31, 2026, Trent's total store network stood at 1,286 outlets. The portfolio includes 300 Westside stores, 963 Zudio stores, including 6 in the UAE ande 23 stores across other lifestyle formats

Expansion remained robust during the year. Westside added 52 stores in FY26, including 22 in Q4 alone, while Zudio led growth with 198 store additions during the year, including a massive 109 stores in just one quarter.

Trent Share Price Target

Trent Limited has received a "HOLD" rating from brokerage firm Systematix Institutional Equities, with a limited near-term 9% upside despite strong growth visibility.

The brokerage has set a target price of Rs. 4,848, compared to the current market price (CMP) of Rs. 4,435, implying a modest upside of around 9% from current levels.

According to the Systematix report, "Trent is expected to sustain a healthy revenue growth trajectory of 18-20% over the medium term. However, much of this optimism appears to be already factored into the stock's current valuation.
The brokerage said that, "Like-for-like (LFL) growth is likely to remain in the low-to-mid single-digit range. Overall revenue growth will be primarily driven by store expansion, rather than sharp same-store sales growth"

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