Trent Q1 FY26: Revenue up 19%, profit rises 9%

What Trent reported for Q1 FY26

Trent, the Tata Group’s retail arm, reported a steady Q1 FY26, with revenue growth holding near the high-teens even as the market narrative shifted toward moderation. In the quarter, consolidated revenue from operations was reported at ₹4,883.48 crore, up from ₹4,104.44 crore a year earlier. Consolidated net profit was reported at around ₹425 crore to ₹430 crore, translating into about 9% year-on-year growth based on figures cited in the updates.

Alongside the consolidated numbers, the company also disclosed standalone metrics in multiple updates during the period. Standalone revenue for the June quarter was reported at ₹4,781 crore, up from ₹3,992 crore in Q1 FY25. Another operational update referenced standalone revenue of ₹5,061 crore, up 19.7% year-on-year. Separate commentary in the same information set also cited ₹5,174 crore revenue for Q1 FY26 and a revenue figure of ₹4,937 crore, indicating that investors were tracking multiple reported bases and disclosures.

Profitability and margin signals

Profitability was a key support in the quarter’s narrative. One report stated operating profit rose 38% to ₹847 crore, while another cited EBITDA at ₹848 crore, also up 38% year-on-year. Operating margins were reported to have improved to about 17.3% to 17.35%, up from around 15%, with a stated improvement of 240 basis points.

PBT figures also appeared in the available information. One line item cited PBT of ₹565 crore for Q1 FY26, up 13% year-on-year. For context on the prior-year base, the article data also included Q1 FY25 PBT of ₹501 crore, up 136% from ₹212 crore in Q1 FY24.

Like-for-like growth and demand commentary

The company indicated that revenue growth remained healthy across markets, despite the early onset of monsoon and geopolitical disruptions. But the update also pointed out that like-for-like growth in the fashion portfolio was in low single digits for Q1 FY26. That detail mattered because Trent’s recent expansion and valuation debate has been closely tied to sustaining high same-store growth alongside store additions.

Chairman Noel N Tata, in a referenced statement, said the company remained focused on evolving its differentiated consumer proposition across markets. The company also clarified that consolidated revenues do not include those from the Trent Hypermarket business due to accounting standards, although its share of profitability is accounted for under the equity method.

Why the stock reaction stayed sharp

Despite the reported growth and margin expansion, Trent’s share price action remained volatile around updates and earnings. One report noted the stock fell as much as 12% on concerns around growth moderation and valuation. Another market update said shares “nosedived” nearly 14% intraday after the company guided for about 20% revenue growth for the first quarter, which analysts viewed as lower than earlier expectations, and the stock closed at ₹5,456, down 11.8%.

In a separate instance, the stock was reported to have dropped to a five-month low of ₹4,848, down 3% intraday on the BSE. Another report noted that, year-to-date, the stock was down 25%, and down 4% over the past month at the time of that update.

Reuters: Q3 update and the January 6 sell-off

A Reuters report described a sharp decline in the stock even after a revenue growth print for the December quarter. Trent shares fell up to 8.3% on January 6, hitting an intraday low of ₹4,060.65 on the BSE. At 10:40 a.m. IST, the stock was trading 7.5% lower at ₹4,098, and was cited as the biggest percentage loser on the Nifty 50 in that session.

For the quarter ending December 31, the company disclosed standalone revenue of ₹5,220 crore, a 17% year-on-year increase. Reuters added that this growth was unchanged from the prior quarter, and cited analyst Karan Taurani of Elara Securities saying, “It’s a miss,” in the context of expectations.

Brokerages flag moderation and recalibrate targets

Multiple brokerage notes in the information set focused on slowing growth momentum. Morgan Stanley noted that revenue growth was steady versus the previous quarter but lower than the 37%, 29%, and 20% seen in earlier quarters. Antique Stock Broking said “growth trends seem to be moderating” and cut its target price by more than 14% to ₹5,700.

Goldman Sachs linked the slowdown partly to lower sales throughput from newer Zudio stores in Tier-2 and smaller cities, and cut FY26-28 EPS estimates by 5% due to reduced sales growth expectations. UBS said Q2 revenue growth of 17% extended the deceleration trend seen since Q4 FY25, while characterising the phase as cyclical.

A closer look at the longer-term growth base

The article data also highlighted that Trent’s growth over several years has been strong, which helps explain why the market is sensitive to signs of moderation. It referenced Q1 FY25 revenue of ₹4,354 crore, up 55% from ₹2,808 crore in Q1 FY24, and a revenue CAGR of 38% over Q1 FY20. For PBT, it cited ₹501 crore in Q1 FY25 versus ₹212 crore in Q1 FY24, with a CAGR of 49% over Q1 FY20.

Separately, the company’s AGM commentary was referenced in relation to expectations. According to the information set, the company indicated its fashion segment was expected to grow about 20% in Q1 FY26E, lower than a stated five-year CAGR of 35% over FY20-25.

Key numbers and market moves at a glance

What to watch next

Trent’s Q1 FY26 reporting kept revenue growth in the high-teens and delivered stronger-than-expected operating profitability in some estimates. But the same set of updates also captured investor sensitivity to the pace of growth, especially after a multi-year run of elevated expansion.

The next key checkpoints for investors will be upcoming quarterly updates on revenue trajectory, like-for-like trends in the fashion portfolio, and commentary on store productivity in newer markets. Brokerage target changes and earnings estimate revisions also suggest the market will continue to weigh growth visibility against valuation expectations.