Shares of Trent are in focus after the company reported a strong set of fourth quarter results on Wednesday. Trent Ltd.'s net profit jumped 30% to Rs 455 crore YoY (year-on-year) compared to Rs 350 crore in the year ago period, for the fourth quarter of fiscal 2026, as per an exchange filing from the company. Brokerages, although mostly positive, had mixed reactions on the quarter and outlook. They have confidence in the retailer's growth strategy, but also flagged concerns around valuations and margin durability.
The company announced a dividend of Rs 6 per equity share to be paid on the third day from the conclusion of the firm's 74th annual general meeting.
Trent Q4FY26 Highlights (Cons, YoY)
- Net Profit up 30% at Rs 455 crore versus Rs 350 crore (Estimate Of Rs 376 Crore)
- Revenue up 20.2% at Rs 4,937 crore versus Rs 4,106 crore YoY (Estimate of Rs 4,932 crore)
- EBITDA up 40% at Rs 919 crore versus Rs 656 Cr YoY (Estimate of Rs 798 crore)
- EBITDA Margin At 18.6% Vs 16% YoY (Estimate of 16.5%)
Morgan Stanley reiterated an Overweight rating with a Rs 4,835 target, citing a Q4 margin beat and stable consumer sentiment, even as discretionary spending moderated. In contrast, Citi maintained a Sell rating but raised its target price to Rs 4,100 from Rs 3,800, pointing to strong execution while warning that recent gross margin strength may not be sustainable. Jefferies, which held its Hold stance and lifted its target to Rs 4,675 from Rs 4,575, highlighted strong Q4 performance driven by store additions and improving like‑for‑like growth that led to a 40% year‑on‑year jump in operating EBITDA.
Morgan Stanley on Trent
- Morgan Stanley maintains an Overweight rating with a target price of Rs 4,835.
- Q4 saw a margin beat.
- Consumer sentiment remained stable, although discretionary spending moderated due to macro uncertainties.
- Management flagged early signs of raw material inflation and supplier labour tightness, which were mitigated through calibrated sourcing.
- Strategy remains intact to increase revenue share from proximate markets.
Citi on Trent
- Citi maintains a Sell rating and hikes the target price to Rs 4,100 from Rs 3,800.
- Overall execution remains strong.
- However, the brokerage sees risks to margin sustainability.
- Gross margins likely benefited from inventory provisioning reversals.
- While the business model and execution track record remain strong, Citi prefers to wait for better valuations.
Jefferies on Trent
- Jefferies maintains a Hold rating and hikes the target price to Rs 4,675 from Rs 4,575.
- Q4 performance was strong, aided by store expansion and improving like-for-like growth.
- Operating leverage and internal measures drove a 40% YoY growth in operating EBITDA.
- Management commentary remains cautious on near-term demand amid geopolitical uncertainties, which could also push up costs.
- The company continues to focus on densifying key markets and expanding into smaller cities.
ALSO READ: Trent Q4 Results: Profit Jumps 30%; Dividend Of Rs 6 Declared
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