Tata Group-owned Trent Ltd.'s stocks surged as high as 10% to hit upper circuit on Tuesday, after the retail company posted a better than expected revenue growth in its second quarter business update.
The firm's standalone revenue jumped 23% to Rs 5,788 crore year-on-year as of Sept. 30, 2026 for the first time in five quarters. Store count stood at 1,342, wherein 10 Westside stores and 11 Zudio stores were added, as per a regulatory filing released on Monday.
Shares opened 8.5% higher at Rs 2,800 and surged further to get stuck in the upper circuit.
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ALSO READ: Trent's Q2 Business Update Has Morgan Stanley Bullish; But Goldman Sachs, Citi Tread With Caution
Market Bullish, But Brokerages Split
Brokerages are split on the Tata Group company's second quarter progress. Morgan Stanley has maintained an 'overweight' rating on the stock, with a target price of Rs 3,406, while Citi has a 'sell' call on the stock and Goldman Sachs remains neutral.
MS called Q2 growth as strong and neat, with revenue accelerating to 23% from 16-20% in past 5 quarters. The brokerage remains watchful of margins while outlining that the better-than-expected revenue growth should be viewed positively, especially in the context of shift in the festive calendar.
Citi, on the other hand, said that a lower-than-expected store expansion and a 8.4% decline in the average revenue per square foot keeps it cautious, especially in the context of risk to margins from input cost inflation.
The brokerage maintained a 'sell' call on the Tata Group retailer, with a target price of Rs 2,950, implying an upside of roughly 14.5%, lower than MS' expectation of a 32.7% upside.
"In 1HFY27, Trent has added 56 net stores (vs 58 in 1HFY26 and 243 in FY26). Sustained improvement in revenue per sq ft trend bundled with store expansion can drive further re-rating," Citi noted, while adding that it remains cautious on the firm given a still-weak revenue per sq ft trend, increasing competition, impact of cannibalization, and risk to margins from input cost inflation.
Goldman Sachs has maintained a 'neutral' rating on Trent, but has hiked its price target to Rs 3,010 from Rs 2,960 factoring in the Q2 revenue beat. However, the brokerage remains hawkish in regards to the impact of raw material costs going ahead.
"Since most of the merchandise buying for 1Q was done by March, RM inflation pressure did not show up in 1Q gross margin. However, we expect RM costs to be elevated in 2Q and 3Q. We also expect to see elevated employee costs given the recent hikes in minimum wages," GS underscored.
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