Trent share price falls 8% as growth outlook cools

What triggered the sell-off in Trent

Trent shares saw sharp declines across multiple sessions after investors and analysts reacted to business updates that pointed to slower growth than expected. In Tuesday’s trade, the stock fell as much as 8.3% after a December-quarter revenue update that missed analysts’ forecasts. Separately, the stock also dropped more than 7% on a Friday after management flagged a slower growth trajectory at its annual general meeting (AGM). The repeated market reaction shows how sensitive the stock has been to changes in growth expectations. Trent is a Tata Group retailer known for brands such as Zudio and Westside. Broker notes following these updates highlighted moderating growth trends, valuation concerns, and risks such as store cannibalisation.

Tuesday’s move: down over 8% on the revenue update

On Tuesday, Trent shares plunged over 8% after the company’s December-quarter business update failed to meet Street expectations. Reuters reported the stock was down up to 8.3%, and at 10:40 a.m. IST it was trading 7.5% lower at ₹4,098, the biggest percentage loser on the Nifty 50 while the index was largely stable. The stock hit an intraday low of ₹4,060.65, down 8.32% in that session, according to another market update. Trent later settled at ₹4,055 on NSE, down 8.46% for the day. The move came amid scrutiny of Trent’s revenue trajectory versus earlier quarters. The session also highlighted how quickly sentiment can shift when a high-growth stock shows signs of deceleration.

The December-quarter revenue number and growth context

For the quarter ended December 31, Reuters said Trent disclosed standalone revenue of 52.20 billion rupees, which is ₹5,220 crore, up 17% year-on-year. Morgan Stanley noted that revenue growth remained steady versus the prior quarter, but was materially lower than earlier growth rates of 37%, 29%, and 20% seen in previous quarters. Antique Stock Broking said “growth trends seem to be moderating,” and reduced its target price by more than 14% to ₹5,700. These comments framed the market’s focus on whether Trent’s growth is settling into a lower band after a strong run. The moderation narrative, rather than an absolute decline, drove much of the reaction.

Retail investor holding and value after the fall

One update said retail investors held a 14.27% stake in Trent. After the stock fell 8.32% to an intraday low of ₹4,060.65, that retail holding was valued at ₹20,793 crore. The data point underlined how much retail participation is embedded in the counter. It also shows that short, sharp price moves can quickly change the mark-to-market value of such holdings. While the stake itself did not change in the session, the value moved with the stock. This context matters because stocks with high retail ownership can see amplified reactions around headline growth updates.

AGM warning: growth expected around 20% in Q1FY26

In a separate episode, Trent shares fell as much as 8.7% to ₹5,652 on a Friday after the company flagged slower revenue growth at its AGM. Reuters reported the stock was down over 7% during Friday morning trade after the outlook did not meet investor expectations. At the AGM, Trent projected revenue growth of around 20% for Q1FY26. Brokerages compared this with the 35% compound annual growth rate (CAGR) reported for FY20 to FY25. The 20% outlook was also described as below the company’s stated goal of sustaining a 25% CAGR over the coming years. Nuvama Institutional Equities flagged the near-term slowdown as a key concern and downgraded the stock to “Hold.”

Q1FY26 reported performance: profit up, growth still debated

Trent’s Q1FY26 performance was cited in multiple reports with slightly different revenue figures. One update said net profit rose 9% year-on-year to ₹425 crore, while revenue grew 19% to ₹4,883 crore. Another report said standalone revenue grew 20% year-on-year to ₹5,061 crore. Regardless of the exact reported base in each update, the common thread in brokerage commentary was that growth had slowed versus the company’s historical pace and versus elevated expectations. Some brokerages maintained positive calls, while others focused on valuation comfort and the visibility of growth levers. The divergence in views reflects a market trying to reprice growth assumptions rather than reacting to a single metric.

Brokerage calls: upgrades, downgrades, and mixed targets

Brokerages offered a wide range of stances as the stock corrected. HDFC Institutional Equities said that after a near 50% price correction from peak to trough, “it may perhaps be time to pivot as risk-reward turns favourable,” upgrading the stock to “ADD” with a target price of ₹4,700. Kotak maintained a “Reduce” stance with a fair value of ₹4,900, citing expensive valuations against a revised growth outlook and risks from store cannibalisation and slowing revenue momentum. Kotak’s target implied a 6% downside from a last close of ₹5,193, as cited in the report. Nuvama downgraded to “Hold” and cut its target price to ₹5,884 from ₹6,627 due to the anticipated slowdown. Goldman Sachs also downgraded the stock from “buy” to “neutral,” citing concerns over slowing sales and underperformance of Zudio stores.

Key numbers and brokerage actions at a glance

What the market is reacting to: growth visibility and valuation

A consistent theme across notes was that growth expectations are resetting. Morgan Stanley’s comparison of the latest growth rate with earlier quarters (37%, 29%, and 20%) reinforced the perception of moderation. Kotak highlighted valuation discomfort against a revised growth outlook, alongside risks such as store cannibalisation. Antique cut its target price to ₹5,700 after seeing moderating growth trends, and also referenced FY2026 to FY2028 earnings estimate cuts of 3% to 7% linked to slower same-store sales growth and muted revenue prospects. Nuvama cut revenue estimates by 5% for the current financial year and by 6% for FY27, and reduced estimated gross operating profit by 9% and 12% respectively, in another report. These moves show analysts adjusting models to a slower growth runway rather than questioning the business model outright.

Counterpoints: “one-off” factors and differing broker reads

Not all commentary framed the slowdown as structural. A market note said Macquarie kept an “outperform” stance with a target price of ₹7,000, but still described Q1 commentary and growth as disappointing. Macquarie attributed the softer Q1 growth to one-off factors linked to early monsoons and the India-Pakistan conflict, and said trends could bounce back to 25% to 30% growth in the second quarter as per guidance cited in that note. At the same time, Avendus was reported to have downgraded to “Reduce,” while Motilal Oswal maintained a “Buy,” indicating a split view on whether the current valuation fairly reflects the new growth cadence. The spread in targets and ratings suggests the market is weighing near-term execution and demand signals against the company’s longer-term store and brand strategy.

Conclusion: a re-rating moment driven by growth expectations

Trent’s sharp stock moves followed updates that highlighted moderating growth versus what many analysts and investors had priced in. The Tuesday fall of more than 8% and the separate AGM-led decline show that incremental changes in growth outlook can drive outsized price reactions. Brokerages are now split between those seeing a more favourable risk-reward after a steep correction and those staying cautious due to valuation and growth visibility. The next major focus points remain upcoming quarterly numbers and any further commentary on growth, same-store sales, and the pace of store additions. Investors will also track whether growth stabilises closer to the 25% target mentioned in brokerage notes, or remains near the 20% band signalled at the AGM.