Trent Shares Tank 7%, Hit 52-Week Low Post Q2 FY26 Results; Profit Up 11% YoY; Nuvama Maintains ‘Hold'

Shares of Trent Ltd, the retail arm of the Tata Group, fell sharply by nearly 7% on Monday, November 10, after the company announced its Q2 FY26 financial results last Friday, Nov 7, post-market hours. Trent's share price today dropped by 6.68% to trade at Rs. 4,318.00 on the NSE at the time of writing. Despite a positive earnings report showing double-digit growth, the stock saw selling pressure as the market expected even stronger performance given the high valuations.

Trent Q2 FY26 Results

According to the company's financial statement, Trent Ltd reported consolidated revenues of Rs. 5,107 crore for the quarter ended September 30, 2025, or Q2 FY26, marking a 16% year-on-year (YoY) growth over the same period last year.

The company's operating EBITDA came in at Rs. 575 crore, up 14% YoY, while profit after tax (PAT) rose 11% to Rs. 373 crore. For the first half of FY26 (H1 FY26), Trent's total revenue stood at Rs. 10,281 crore, a rise of 18% compared to the previous year, and PAT reached Rs. 798 crore, reflecting a 10% YoY increase.

Despite inflationary pressures, Trent maintained steady operating margins. The operating EBITDA margin for Q2 FY26 stood at 10.2%, slightly lower than 11% in Q2 FY25, mainly due to investments in new stores and marketing expenses.

Trent said that the gross margin profile for Westside and Zudio remains consistent, supported by strong merchandise sourcing, disciplined inventory control, and efficient price architecture.

Store Expansion and New Launches

Trent continued its aggressive retail expansion during the quarter. The company now operates a portfolio of over 1,000 large-format fashion stores across 251 cities, including 261 Westside stores, 806 Zudio stores, and 34 stores under other lifestyle brands.
As per the press release shared by the company, in Q2 FY26 alone, Trent opened 19 Westside and 44 Zudio stores, including one in the UAE, while also consolidating a few underperforming outlets. The company's total retail footprint now exceeds 14 million sq. ft across India and overseas markets.

Trent Share Price Reaction

Following the results, Trent shares declined sharply as investors booked profits. The counter has been one of the worst-performing retail stocks in 2025 and has corrected over 39% year to date. As of today the firm's market capitalisation stands at Rs. 1.53 lakh crores.

Nuvama Retains 'HOLD' on Trent, Cuts Target Price Post Q2 Earnings

Nuvama Institutional Equities has lowered its target price for Trent to Rs. 5,189 (from Rs. 5,850 earlier) and maintained a 'HOLD' rating on the stock.

According to Nuvama Institutional Equities, Trent Ltd reported a healthy performance in Q2 FY26 with standalone revenue, EBITDA, pre-Ind AS EBITDA, and PAT growing 17%, 27%, 16%, and 6% year-on-year, respectively. However, the brokerage firm in its report said that growth momentum has moderated due to the company's expansion into Tier-2 cities and new stores, which typically have a higher gestation period than the existing network.

"Profitability was pressured by slower productivity but benefited from significant cost optimisation. Star Bazaar's revenue decreased 2% YoY, impacted by ongoing store upgrades. We are tweaking the revenue/EBITDA/PAT estimate for FY26 by -3.6%/-4.1%/-9.5% and for FY27 by -3%/-3.1%/-9.8%. This, along with a valuation rollover to H1FY28E, yields a revised TP of INR5,189 (earlier INR5,850); maintain 'HOLD', said Nuvama in its report.

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