Trent Stock Falls As Q4 Revenue Misses Estimate, Margins See Compression

Trent Ltd.'s share price declined over 4% on Wednesday, after its fourth-quarter revenue — though it rose — came in slightly lower than estimates. The net profit also declined but beat analysts' estimates.

Another reason for the decline in the stock is likely due to worries about the moderation in like-for-like growth and mixed signals from the Star Bazaar portfolio as highlighted by brokerages in their post earnings note.

Morgan Stanley described the quarter as having “some hits and some misses” with mid-single-digit fashion like-for-like growth and compression in gross margins, likely due to inventory write-offs.

Nevertheless, in the bigger picture context, brokerages remained optimistic, emphasising the company's sustained margin resilience, effective cost management, and proactive store expansion efforts.

The Tata Group company's standalone net profit fell by 47% to Rs 350 crore in the January–March quarter, but surpassed the consensus estimate of Rs 302 crore by Bloomberg analysts.

During the same quarter of fiscal 2024, Trent had reported exceptional gains of Rs 576 crore. Excluding these gains, the company's net profit has increased during the March 2025 quarter.

Trent reported a 29% increase in revenue to Rs 4,106 crore from Rs 3,187 crore, slightly below the Bloomberg estimate of Rs 4,131 crore.

Earnings before interest, tax, depreciation and amortisation rose by 38% to Rs 656 crore from Rs 477 crore, surpassing the estimate of Rs 609 crore.

The margin expanded to 16% from 15%, higher than the estimated 14.7%.

Shares of Trent fell as much as 4.44% to Rs 5,152 apiece. They pared losses to trade 3.88% lower at Rs 5,182 apiece, as of 09:31 a.m. This compares to a flat NSE Nifty 50 with marginal gains.

The stock has risen 17.52% in the last 12 months. Total traded volume so far in the day stood at 4.6 times its 30-day average. The relative strength index was at 50.

Out of 25 analysts tracking the company, 17 maintain a 'buy' rating, four recommend a 'hold' and four suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 17.8%.