Trent outlines 10x revenue plan with 5,000 Zudio stores

Expansion plan set out at the AGM

Trent Ltd, the Tata Group’s retail arm, has outlined a long-term plan to grow revenue tenfold by sharply expanding its store network and scaling multiple formats. The roadmap was discussed during the company’s 74th annual general meeting (AGM), where chairman Noel Tata reiterated the ambition first articulated at the 2023 shareholders’ meeting. Management said revenue and profitability growth has already progressed materially since that aspiration was shared, with Noel Tata stating the rate has risen by over 2.5 times. Separately, updates around the AGM also noted that revenue has doubled since the tenfold growth vision was announced in FY23.

The plan centres on higher store density, deeper penetration beyond major metros, and investment in infrastructure and technology. Trent also indicated it is incubating newer concepts alongside its core fashion and food businesses. While the company kept the focus on execution and rollout, the AGM commentary also flagged a near-term moderation in growth, which became a key point for investors.

₹2,500 crore equity raise to fund infrastructure and automation

A key enabler for the expansion is a proposed ₹2,500 crore equity fundraise. Trent said the proceeds are intended for infrastructure build-out, warehouse development, and AI-driven supply chain automation. The stated objective is to strengthen the backend so that store additions can be supported without disrupting availability and replenishment.

Alongside supply chain automation, management has spoken about using artificial intelligence and third-party data to improve site selection. This includes datasets such as brand-specific store density and digital transaction volumes to identify potential micro-markets. The emphasis on data-led rollout is aligned with Trent’s shift to a larger footprint in smaller towns and around urban clusters.

Westside: target of 700 stores from about 300

For Westside, Trent’s plan calls for scaling the store network from around 300 currently to 700 over time. Westside is positioned as part of the company’s multi-brand strategy, where each format is expected to maintain a distinct proposition while benefiting from shared infrastructure.

Store additions have continued into FY26. During Q1 FY26 (April to June 2025), Trent added one Westside store, according to AGM-linked updates. The Westside target is meaningful because it implies a long runway even for the older, more established apparel format in Trent’s portfolio.

Zudio: aggressive push to 5,000 outlets

Zudio remains the biggest expansion lever in Trent’s disclosed strategy. The company has communicated a target of taking Zudio to 5,000 outlets, from a base described in different updates across time periods. One long-term plan update referenced growth from approximately 963 outlets to 5,000, while another business update said Trent had more than 1,100 locations after opening over 100 stores in the nine months leading up to December.

Other disclosed metrics underline how quickly the format has scaled. A company presentation cited that over 75% of Zudio stores launched in the nine months ending in December were outside metropolitan regions. HDFC Securities also highlighted that around 54% of Zudio’s current network had been added in the last 18 months. During Q1 FY26 alone, Trent added 11 Zudio outlets.

Smaller cities and micro-markets become the centre of additions

Trent’s recent rollout has leaned into non-metro demand. Managing director P. Venkatesalu said approximately two-thirds of new store openings are now in emerging towns, cities, and micro-markets surrounding urban areas. The company has also expanded its reach to 274 cities, as referenced in the same set of updates.

This approach reflects a shift from metro-first expansion to a cluster strategy that can compound through local visibility and repeat purchases. It also raises the importance of logistics execution, since a wider geographic spread can pressure inventory movement and replenishment unless backend capacity expands in parallel.

Star Bazaar and food retail: focus on configuration and performance

Beyond fashion, Trent is prioritising a reset at its food and grocery chain, Star, with a focus on “configuration” to improve store-level performance. Commentary around the AGM suggested food retail has large potential, and one highlight noted that Star Bazaar (Trent Hypermarket) could eventually surpass Westside and Zudio in scale, though that remains an aspirational view in the updates.

Nuvama’s notes on the company also pointed to Star Bazaar as a potential future revenue driver, while underlining that operational stability is needed before scaling aggressively. Management has also referenced grocery-focused formats being in early build-out phases, reinforcing that the food vertical is still in execution mode.

New concepts: Samoh, Burnt Toast, Zudio Beauty, and Pome

Trent is also incubating new concepts including Samoh and Burnt Toast. The company has said these remain early-stage and may take another two to three years before reaching scale. Updates around expansion have also mentioned Zudio Beauty as a potential growth lever, while flagging that it needs to stabilise before meaningful scale-up.

Separately, an investor day summary referenced a lab-grown diamond brand, Pome, as part of the company’s widening portfolio. Across these initiatives, management commentary has emphasised building distinct propositions rather than chasing volume at any cost.

Growth outlook: strong long-term ambition, slower near-term print

At the AGM held on July 3, 2025, Trent projected around 20% revenue growth for Q1 FY26. That was lower than the 35% compounded annual growth rate (CAGR) recorded between FY20 and FY25, as cited in the same update. Management attributed the moderation to factors such as a high base and operational transition phases tied to newer initiatives.

The update also said the long-term growth target of 25%+ remains intact. However, the near-term moderation triggered investor concerns, and the stock saw a sharp correction after the AGM, based on the same narrative.

Store addition cadence: FY26 guidance and external estimates

Trent has reiterated aggressive store expansion, including management guidance of 250+ new stores across formats in FY26. Separately, a brokerage view cited potential annual additions of 170-180 stores, arguing there is still room to grow in districts where Zudio’s presence is low.

These disclosures show that, while the 5,000 Zudio and 700 Westside targets are long-dated, near-term execution will be measured in annual store adds and how quickly new stores reach maturity.

Key numbers at a glance

Why this matters for investors

The disclosures show Trent is pursuing a scale-led strategy that relies on both front-end expansion and back-end capability. The ₹2,500 crore equity raise is positioned as a direct support for warehousing and automation, which becomes increasingly important as store density rises in smaller cities. Management’s repeated references to AI-led supply chain planning and data-driven site selection also indicate a push to systematise expansion as the network grows.

At the same time, the AGM’s indication of slower Q1 FY26 revenue growth highlights the tension between long-term targets and near-term volatility in growth rates. Investors are likely to track whether newer initiatives such as Zudio Beauty and grocery-focused formats stabilise operationally before they become meaningful contributors.

Conclusion

Trent has reaffirmed a tenfold revenue ambition built on aggressive store additions, with Zudio targeted for 5,000 outlets and Westside for 700. The plan is backed by a ₹2,500 crore equity raise aimed at strengthening infrastructure, warehousing, and AI-led supply chain execution. Near term, the company has signalled a moderation in Q1 FY26 growth to around 20%, even as it continues to add stores and expand into smaller cities. The next key datapoints will be execution against FY26’s 250+ store addition plan and progress on stabilising newer verticals before they scale further.