Trent Q3 Results: Profit Up 37%, But Misses Estimates

Trent Ltd.'s net profit increased by 37% in the third quarter of fiscal 2025 but missed analysts' estimates. The net profit of the Tata Group company rose to Rs 469 crore in the October-December quarter, compared to Rs 344 crore in the same period last year.

Analysts polled by Bloomberg had a consensus estimate of Rs 520 crore for the fashion retail major's bottom line.

Trent Q3 FY25 Highlights (Standalone, YoY)

• Revenue up 36.9% to Rs 4,535 crore versus Rs 3,312 crore (Bloomberg estimate: Rs 4,621 crore)

• Ebitda up 34.4% to Rs 838 crore versus Rs 623 crore (Estimate: Rs 862 crore)

• Margin at 18.5% versus 18.8% (Estimate: 18.6%)

• Net profit up 36.6% to Rs 469 crore versus Rs 344 crore (Estimate: Rs 520 crore)

This marks the second consecutive quarter with revenue growth below 50% since Q4 FY21. During this quarter, Trent opened 14 new Westside stores and 62 new Zudio stores, achieving a volume growth of 39% over the first nine months of FY25. The fashion concepts registered high single-digit like-for-like growth, compared to high double digits in the previous periods.

Emerging categories now contribute to over 20% of Trent's revenues, with online revenues growing 45% year to date and now accounting for over 6% of Westside revenues.

Star Bazaar reported an operating revenue growth of 25%, along with double-digit LFL growth. Trent's strategy includes upgrading smaller stores to larger formats and enhancing store aesthetics, which may result in near-term margin pressure and an increase in capital expenditure.