Trent Q3 Results Review: Stable Margins Provide Relief, But Earnings Projection Trimmed

Trent Ltd.'s third-quarter earnings invited mixed reactions from analysts who flagged lower same-store sales growth, even as numbers missed estimates. However, stable operating margins provided a breather.

Trent's net profit increased by 37% to Rs 344 crore in the third quarter of fiscal 2025, but missed analysts' estimates of Rs 520 crore. Revenue rose 37% to Rs 4,535 crore, compared to the estimate of Rs 4,621 crore.

On the operating side, Ebitda jumped 34% to Rs 838 crore, while margin dipped marginally to 18.5% from 18.8%. 

The company registered a volume growth of 39% over the last nine months. Emerging categories contributed over 20% revenues.

Here is what analysts had to say about Trent's third quarter earning.

Citi

The brokerage said despite strong operational performance, like-for-like moderation appears to be driven by a slowdown in discretionary consumption against a higher base. Trent currently trades at 42 times its fiscal 2027 estimated enterprise value-to-Ebitda—well above peers like Titan and DMart at 36 times—even though it is expected to post a better revenue growth over three years.

Citi remained bullish on Trent, considering it a top pick in India’s consumer discretionary and retail sectors.

Bernstein

The firm highlighted key positives from the third quarter, such as retail area additions and stable margins, but flagged lower same-store sales growth, which led to a reduction in earnings projection.

With a 24-month forward price-to-earnings at its lowest since 2021 and conservative EPS growth expectations of 15–17% from FY24 to FY30, Bernstein views the recent 8% drop in Trent share price—and a 26% decline year-to-date—as an overreaction.

Jefferies

For the second consecutive quarter, Trent’s earnings met expectations, although revenue missed estimates. The firm noted that while fashion like-for-like sales were in the high single digits, the company continued to expand its store network effectively.

Despite some investor concerns, stable operating margins provided relief, even as the stock corrected 8% post-results amid a pause in the earnings upgrade cycle and relatively high valuations. The brokerage also reduced revenue growth and margin assumptions.