Trent Limited shares traded 0.48 per cent lower at ₹5,331 on Wednesday afternoon after the Tata Group retailer reported its slowest revenue growth in two years, despite beating profit estimates for the June quarter.
The stock opened at ₹5,285 against the previous close of ₹5,356.50 and touched a high of ₹5,440 during the session. Trading volumes remained active with 14.74 lakh shares changing hands, generating a turnover of ₹789.74 crore by midday.
Market sentiment turned cautious as the company’s standalone revenue growth of 20 per cent year-on-year marked a significant deceleration from 57 per cent growth in the same quarter last year. While Trent beat profit estimates with a net income of ₹423 crore against poll expectations of ₹390 crore, revenue of ₹4,781 crore fell short of the estimated ₹5,061 crore.
Leading brokerages maintained their buy ratings but trimmed target prices following the results. Citi cut its target to ₹7,150 from ₹7,600 while maintaining a buy rating, citing slower revenue growth despite profitability beating expectations. MOSL reduced its target to ₹6,400 from ₹6,600, highlighting margin expansion surprises despite the growth slowdown.
Bernstein set an outperform rating with a ₹6,500 target but called the revenue growth a “significant disappointment.” The brokerage noted that despite adding 27 per cent more stores and 38 per cent additional square footage, revenue growth remained subdued. Like-for-like growth moderated to low single digits from mid-single digits in the previous quarter.
However, Avendus took a more bearish stance, downgrading the stock to ‘Reduce’ with a ₹5,000 target, down from ₹5,650. The brokerage cited stretched valuations at 65 times price-to-earnings and predicted FY26 may witness a consolidation phase with muted macro conditions potentially capping the market capitalization near ₹2 lakh crore.
The mixed analyst reactions reflect concerns over growth sustainability amid competitive pressures in the retail sector.
More Like This
Published on August 7, 2025