Brokerages remained optimistic on Trent Ltd. after the Tata Group retailer reported a 47% year-on-year decline in standalone web revenue to Rs 350 crore for the January–March quarter.
Whereas the underside line drop was attributable to a excessive base with distinctive beneficial properties of Rs 576 crore within the year-ago interval, working efficiency outpaced expectations.
Income rose 29% to Rs 4,106 crore, barely beneath Bloomberg estimates, whereas Ebitda jumped 38% to Rs 656 crore, beating the Rs 609 crore forecast. Margins expanded to 16%, versus 14.7% anticipated.
Trent’s inventory fell over 4% intraday regardless of the stable beat, possible on issues round like-for-like development moderation and combined alerts from the Star Bazaar portfolio. But, brokerages remained upbeat, highlighting continued margin resilience, robust value controls, and aggressive retailer additions.
Brokerage View
Citi | Goal Worth: Rs 7,600 | Score: Purchase
Citi stated Trent delivered a “stable beat” pushed by decrease working bills. It highlighted that Trent’s industry-leading income development and aware deal with retailer density over like-for-like development have been strategic positives. The agency raised its fiscal 2027 Ebitda estimates by 4–6% and rolled ahead its valuation to March 2027, revising its goal worth to Rs 7,600 from Rs 6,850.
Nuvama | Goal Worth: Rs 6,224 | Score: Purchase
Nuvama famous the 100-basis-point Ebit margin enlargement got here regardless of a dip in like-for-like development, citing attainable demand softness, retailer cannibalisation, and competitors. Whereas the Star format stays a drag, underlying gross margins in Westside and Zudio stayed secure.
It trimmed its fiscal 2026 and 2027 earnings estimates and revised its goal worth downward to Rs 6,224. Key dangers flagged included actual property constraints, rising electrical energy prices, and discounting by on-line gamers.
Macquarie | Goal Worth: Rs 7,200 | Score: Outperform
Macquarie stated Trent beat estimates on the again of mid-single-digit same-store development and decrease working prices. The brokerage remained assured in Trent’s development outlook, citing robust traction throughout codecs and cities. It raised its goal worth by 3%, calling the inventory one in every of its “Asia Marquee purchase” concepts. Key positives included the tempo of retailer additions, improved working capital depth, and volume-led development in fiscal 2025.
Morgan Stanley | TP: Rs 6,359 | Score: Chubby
Morgan Stanley described the quarter as having “some hits and a few misses” with mid-single-digit vogue like-for-like development and compression in gross margins, possible attributable to stock write-offs.
Nonetheless, it acknowledged a slight beat on Ebitda margins. Affiliate losses contributed to a minor revenue miss. Regardless of that, income per retailer improved in fiscal 2025 and total profitability metrics strengthened.
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