Trent Q4 FY26: Profit up 30%, revenue 20%, EBITDA 40%

Trent’s March-quarter numbers set the tone

Trent’s latest March-quarter (Q4) performance triggered fresh attention on the Tata Group retailer, after it posted a clear beat versus street estimates on profit and operating earnings. Net profit came in at ₹455 crore against an estimate of ₹376 crore, with the company described as delivering an “all-round beat” on key metrics. Revenue rose 20.2% year-on-year to ₹4,937 crore, up from ₹4,106 crore in the previous fiscal period referenced in the update. Operating profitability also strengthened, with EBITDA up 40% year-on-year to ₹919 crore from ₹656 crore. The EBITDA number was also ahead of the estimate of ₹803 crore. Alongside growth, the quarterly update highlighted margin expansion, which is often closely tracked for discretionary retail.

Key financial highlights: revenue, profit and margins

The reported EBITDA margin stood at 18.6% versus 16% a year earlier, pointing to improved operating leverage in the quarter. The narrative around the results linked performance to expansion, with commentary suggesting store additions have supported scale-led gains. The revenue growth rate was described as improving versus earlier trends, with year-to-date performance for the first nine months referred to as around 16.5%, while this quarter’s growth was cited at 20%. Similarly, EBITDA growth was compared with an earlier 26% pace, now reported at around 40%. These comparisons were presented to underline the strength of the latest print relative to what investors had been seeing earlier in the year. The update also emphasised that the beat was particularly visible in the net profit and EBITDA lines.

Summary table: reported Q4 metrics versus estimates

Expansion and format mix: why investors link growth to stores

Commentary accompanying the results pointed to expansion as a key driver behind the stronger growth and margin profile. One data point highlighted was Trent’s total store count of 1,286 stores in the referenced context. The update also said that 75% of inventory comes from Zudio, underscoring the central role played by the value-fashion format in the overall business mix. This inventory skew is important because it shapes both sales trajectory and margin structure. The same set of remarks suggested that recent store additions could have a visible impact over the next few quarters. At the same time, the discussion also acknowledged that sustaining growth may require continued store additions.

Stock move and market snapshot around the result

The market reaction described in the feed included a sharp move following quarterly updates, with the stock said to have locked gains of close to 30% from an end-March price of ₹3,400. Another snapshot showed the stock at ₹4,393.45, up ₹150.60 (3.55%) as of 21 April 2026 at 04:01. Trading ranges were also listed, with a day range of ₹4,242.80 to ₹4,444.50 and a 52-week range of ₹3,275.50 to ₹6,261.00. Separately, a headline also referenced Trent rising 4% amid chatter that the firm may announce bonus shares on April 22. The same dataset noted “Earnings: Expected on 22/04/2026,” which market participants typically treat as a near-term catalyst.

Brokerage view 1: HDFC Securities upgrades to ‘Add’

HDFC Securities analysts upgraded Trent to ‘Add’ from ‘Reduce’ after a price correction, citing an improved risk-reward setup. The note flagged operational inputs for future KPIs including same-store sales growth (SSSG) and store expansion. The brokerage also highlighted valuation comfort, saying the stock’s FY28 P/E had shifted from 117x to 60x. HDFC Securities raised its price target to ₹4,700 per share using a sum-of-the-parts approach. It also said EPS estimates for FY27 and FY28 were revised up by 1-2%.

Brokerage view 2: Nuvama flags slower growth and trims target

A separate set of reports showed a more cautious stance from Nuvama, which downgraded Trent to ‘Hold’ and cut its target price to ₹5,884 from ₹6,627. The downgrade followed commentary at the AGM, where management indicated Q1FY26 growth of around 20% in the core fashion business, lower than the 35% CAGR delivered between FY20 and FY25. While management reaffirmed an aspiration of 25% plus growth for the coming few years, the near-term run rate was described as falling short of that goal. Nuvama responded by cutting FY26E and FY27E revenue estimates by 5% and 6%, and trimming EBITDA estimates by 9% and 12%. The brokerage also noted potential levers such as Zudio Beauty and the Star business, while adding that these need to stabilise before scaling.

Business update reference: Q1 revenue and store portfolio

One business update cited standalone revenue from sale of products (including GST) at ₹5,061 crore for the April to June quarter of FY26, compared with ₹4,228 crore in the same quarter last year, reflecting 20% year-on-year growth. Store footprint details were also provided as of June 30, 2025: 248 Westside stores, 766 Zudio stores (including two in the UAE), and 29 outlets across other lifestyle concepts. These store numbers provide context to the expansion-led model discussed alongside the quarterly performance. They also help explain why brokerage notes focus heavily on store rollout and same-store trends.

Volatility around growth concerns: a separate sharp decline

Alongside the results-driven optimism, the broader newsflow also showed how sensitive the stock can be to growth commentary. In early deals after AGM-related concerns, Trent was reported to have slipped 8.62% to ₹5,653 versus a previous close of ₹6,186.40 on the BSE. The market capitalisation in that update was cited at ₹2.04 lakh crore, which is ₹204,000 crore after unit normalisation. Another line noted a fall as much as 8.7% to ₹5,652 on the NSE in a similar context. These moves underline that, for high-growth retail names, near-term guidance can matter as much as reported quarterly beats.

Why this result matters for investors tracking Trent

The reported Q4 beat combined three elements investors typically look for: strong revenue growth, higher operating profit growth, and margin expansion. At the same time, the newsflow shows a push-and-pull between execution strength and questions about sustaining the pace as the base grows. Brokerage commentary captured that split, with HDFC Securities leaning on valuation and operating inputs, and Nuvama emphasising deceleration risk and the need for newer growth levers to stabilise. The store-led model remains central to the thesis, with multiple references to store additions and format mix, including the dominance of Zudio in inventory. The next set of updates, including the expected earnings event on 22/04/2026 and any clarity around bonus shares mentioned in headlines, will likely remain key items on the market’s calendar.