Trent redeems Rs 500 crore of 5.78% debentures in May

Trent Limited redeemed Rs 500 crore of privately placed 5.78% redeemable non-convertible debentures on 29 May 2026. The 5,000 instruments, issued in FY22 at Rs 10 lakh each, were fully repaid. Trent’s paid-up debt capital was Rs 2,233.52 crore at 30 September 2026, compared with Rs 2,514.71 crore at 31 March 2026.

What debentures did Trent redeem in May 2026?

Trent redeemed all 5,000 redeemable non-convertible debentures on 29 May 2026. The instruments were issued during FY22 through a private placement, carried annual interest of 5.78% and had a face value of Rs 10 lakh each, resulting in total principal redemption of Rs 500 crore.

A non-convertible debenture is debt that does not convert into equity shares. The disclosed terms show that Trent raised the Rs 500 crore through private placement rather than a public issue, with a fixed 5.78% annual interest rate. Trent said it had used the entire FY22 issue proceeds for the objects of the issue, but did not specify those objects in this filing.

The redemption was reported in Trent’s standalone cash-flow statement as a Rs 500 crore financing outflow for the six months ended 30 September 2026. The corresponding six months ended 30 September 2025 did not report a long-term borrowing redemption in the cash-flow statement.

How did the repayment change Trent’s debt measures?

Trent’s paid-up debt capital decreased by Rs 281.19 crore between 31 March 2026 and 30 September 2026. The decline was less than the Rs 500 crore debenture repayment because Trent defines paid-up debt capital to include loans, debentures, commercial papers, lease liabilities and financial liabilities under Indian Accounting Standard 116, or Ind AS 116.

The debt-equity ratio was 0.26 at 30 September 2026, down from 0.33 at 31 March 2026 and 0.35 at 30 September 2025. Over the six months to September, total equity increased to Rs 8,524.31 crore from Rs 7,702.80 crore, while total assets rose to Rs 13,093.61 crore from Rs 12,225.71 crore.

Trent’s debt-service coverage ratio was 1.38 for the six months ended 30 September 2026, compared with 2.69 in the corresponding 2025 period and 2.85 for the year ended 31 March 2026. Trent defines the ratio as earnings before interest and tax divided by interest plus principal repayments on debentures, commercial paper, lease liabilities and Ind AS 116 financial liabilities, placing the May repayment within the period’s debt-service calculation.

What was the cash-flow effect of Trent’s repayment?

Trent reported a net financing cash outflow of Rs 785.62 crore for the six months ended 30 September 2026, compared with an outflow of Rs 640.63 crore a year earlier. The Rs 500 crore redemption, Rs 452.04 crore of lease-liability payments, Rs 97.07 crore of finance costs and Rs 212.79 crore of dividends paid were partly offset by Rs 476.28 crore of short-term borrowings.

Net cash from operating activities was Rs 1,440.43 crore in the six months to 30 September 2026, down from Rs 1,530.43 crore in the corresponding 2025 period. Trent generated Rs 1,775.95 crore from operations before direct taxes, paid Rs 335.52 crore in direct taxes and recorded a Rs 554.46 crore cash outflow from inventory movement.

Investing activities used Rs 752.41 crore during the 2026 half-year, compared with Rs 1,034.41 crore in the prior-year period. Trent spent Rs 654.85 crore on property, plant, equipment and investment property, while purchases of investments at Rs 2,477.50 crore exceeded sales of investments of Rs 2,390 crore.

The operating, investing and financing movements resulted in a Rs 97.60 crore decrease in cash and cash equivalents during the six months ended 30 September 2026. Closing cash and cash equivalents were Rs 164.42 crore, compared with Rs 262.02 crore at the beginning of the period.

How did Trent perform during the repayment period?

Trent reported standalone revenue from operations of Rs 11,453.94 crore for the six months ended 30 September 2026, up from Rs 9,505.31 crore in the corresponding 2025 period. Standalone profit before tax increased to Rs 1,346.71 crore from Rs 1,131.07 crore, while net profit rose to Rs 1,021.42 crore from Rs 873.36 crore.

The operating margin was 12.23% for the six months ended 30 September 2026, compared with 11.02% a year earlier. Net profit margin was 8.92%, versus 9.18% in the prior-year period, while finance costs increased to Rs 87.04 crore from Rs 80.82 crore.

For the quarter ended 30 September 2026, Trent’s standalone revenue from operations was Rs 5,787.64 crore, compared with Rs 5,666.30 crore in the June 2026 quarter and Rs 4,724.06 crore in the September 2025 quarter. Quarterly net profit was Rs 489.65 crore, below Rs 531.77 crore in June 2026 but above Rs 450.77 crore a year earlier.

Trent identifies retailing and trading of merchandise as its main business and reported no separate operating segments. Its current ratio, defined as current assets divided by current liabilities excluding debt capital, was 2.15 at 30 September 2026, compared with 2.13 at 31 March 2026.

Conclusion

The FY22 debt issue was fully removed during the first half of FY27, alongside a Rs 281.19 crore reduction in reported paid-up debt capital from the March 2026 level. The period also combined Rs 1,440.43 crore of operating cash inflow with Rs 785.62 crore of financing outflow, while the debt-equity ratio moved to 0.26 from 0.33.

The next disclosures will clarify movements within the Rs 2,233.52 crore of paid-up debt capital at 30 September 2026, since that measure includes lease liabilities, loans, commercial papers and Ind AS 116 financial liabilities as well as debentures. Finance costs of Rs 87.04 crore and the 1.38 debt-service coverage ratio are also relevant measures because the six-month period included the Rs 500 crore principal repayment.