NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Trent Ltd. reported a strong standalone revenue growth of around 16% YoY in Q3 FY26, reinforcing brokerage expectations of 18–20% medium‑term sales growth, despite an increasingly unfavourable base.
ICICI Securities believes there will be a potential positive shift in investor sentiment, if Trent delivers revenue growth of >20%, possibly buoyed by some respite in competition or better demand traction in the near term.
In Q3 FY26, like-for-like growth in Trent's fashion formats dipped marginally, primarily due to the festive season being advanced to Q2. According to ICICI Securities, this trend is expected to normalise, with LFL performance likely improving to mid‑single‑digit levels over the next few quarters.
Profitability remained a standout positive. Superior product mix, tighter cost controls, and operational efficiencies contributed to continued margin expansion, despite heightened competition and a heavy discounting environment. The brokerage notes that while medium-term revenue growth is likely to stabilise near the 18% range, stronger profitability should continue to support earnings growth.
ICICI Securities maintains an Add rating on the stock, citing a healthy growth runway supported by disciplined execution and improving operating metrics.
Downside risks:
- Slower-than expected pick-up in discretionary consumption;
- rise in competitive intensity from peers (Reliance Trends, Max, Pantaloons etc.); and
- execution challenges in Zudio and other newer formats.
Upside risks:
- Success of Zudio; and other pilot formats.
Click on the attachment to read the full report:
Also Read: ICICI Bank Gets Top 'Buy' Tag In The Sector From Motilal Oswal — Check Target Price And More
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
