Trent share price rallied over 6% on Friday after the Tata Group retailer reported its earnings for the second quarter of FY27. The stock surged as much as 6.73% to Rs 3,059 apiece on the BSE.
The parent of Westside and Zudio reported a 25% year-on-year (YoY) increase in consolidated net profit to Rs 468.09 crore for the September quarter. Revenue from operations grew 22% YoY to Rs 5,873.14 crore.
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At the operational level, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 37% YoY to Rs 785 crore.
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Following the results, brokerages remained divided on the stock's outlook, with HSBC retaining its bullish stance, while Citi and Jefferies maintained cautious ratings.
Citi maintained its ‘Sell' rating on Trent but lowered its target price to Rs 2,815 from Rs 2,950. The brokerage raised its FY27-29 revenue estimates by around 2%, citing improving consumer sentiment, but cut its FY27 and FY28 earnings per share estimates by 6% and 3%, respectively.
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Citi highlighted a 121-basis-point YoY expansion in gross margin despite raw material inflation. However, it flagged concerns around revenue growth acceleration, operating-cost inflation and valuations.
Jefferies retained its ‘Hold' rating but reduced its target price to Rs 3,300 from Rs 3,435. It expects annual store additions of 200-250 Zudio outlets and 50 Westside stores.
The brokerage noted that margin expansion supported EBITDA growth and could improve investor sentiment. However, higher input costs remain a near-term concern for margins and demand.
In contrast, HSBC maintained its ‘Buy' rating and raised its target price to Rs 3,480 from Rs 3,390. It expects growth momentum to continue in the second half of FY27, driven by Westside and Zudio expansion, particularly in Tier-II and peripheral markets.
At 11:30 AM, Trent share price was trading 5.74% higher at Rs 3,030.55 apiece on the BSE.
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