Trent Ltd, one of India’s leading retail companies, and part of the Tata Group, saw its stock price plummet by 11% on a single day. This massive drop hit not only retail investors but also big players like Radhakishan Damani, a prominent figure on Dalal Street. Damani’s investment in Trent took a significant hit, with his portfolio dropping by over Rs 310 crore. In this blog, we’ll break down what caused this crash, the impact on Damani, and what the future holds for Trent.
Why did Trent shares fall?
Trent’s share price plunged after the company shared its first-quarter performance update for FY26 during its Annual General Meeting (AGM). The company reported a year-on-year revenue growth of 20%, which, while positive, was below analysts’ expectations of 25%. This lower-than-expected growth triggered a sell-off by investors, as they had been hoping for stronger performance given Trent’s history of high growth.
Let’s break down the numbers that played a crucial role in this drop.
| Key Metric | Value |
| Q1 FY26 Revenue Growth | 20% YoY |
| Expected Growth (Analysts) | 25% YoY |
| Damani’s Stake in Trent (March 2025) | 45,07,407 shares (1.27%) |
| Value of Damani’s Holding (March 2025) | Rs 2,788.46 crore |
| Value of Damani’s Holding (Post-Drop) | Rs 2,476.82 crore |
| Loss in Damani’s Portfolio | Rs 311 crore |
| Stock Price Drop (Intraday) | 11% |
| 52-week High of Trent Stock | Rs 8,345.85 |
The underperformance compared to expectations was the key factor in this dramatic drop. Analysts had been anticipating 25% growth for Q1 FY26, aligned with Trent’s typical growth rate of 35% over the last five years. However, the actual performance of 20% was a red flag, leading to a rapid decline in investor confidence.
Radhakishan damani’s financial hit
As one of the biggest individual stakeholders in Trent, Radhakishan Damani’s financial setback was significant. Damani, through his firm Derive Trading and Resorts, holds a 1.27% stake in Trent. At the end of March 2025, his investment was valued at Rs 2,788.46 crore. However, with the stock’s 11% drop, his holding decreased to Rs 2,476.82 crore, marking a loss of Rs 311 crore.
It’s a stark reminder that even the most experienced investors aren’t immune to the swings of the market. For Damani, this is a hefty loss, but it also showcases the inherent risks of investing, especially in the stock market, where factors beyond a company’s control, such as broader economic trends and market sentiment, can heavily influence stock prices.
The company’s strong expansion plans, including over 250 new stores in FY26, are now seen as more uncertain, as the macroeconomic environment and reduced discretionary spending could make it harder for Trent to meet its ambitious targets.
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What’s behind the lower growth projections?
Despite its solid portfolio of brands such as Westside, Zudio, and Star Bazaar, Trent is facing challenges. The main concern is that newer verticals like Zudio Beauty and Star Bazaar need more time to stabilise before they can generate significant revenue. The company is betting on these segments for future growth, but they are still in the early stages.
In addition, external factors like inflation and slowing consumer spending are affecting growth in the retail sector. As people cut back on discretionary spending, companies like Trent that rely heavily on fashion and lifestyle purchases are feeling the pinch. This makes it harder for the company to reach its previously forecasted growth rate.
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Can Trent Recover?
Despite the challenges, Trent has several factors in its favour. The company’s long-term growth prospects remain positive, especially with its aggressive expansion plans. However, recovery in the short term will depend on how well Trent can manage its new business lines and overcome macroeconomic challenges.
The company’s ability to stabilise Zudio Beauty and Star Bazaar, along with continued expansion, will be key to its success in the next few years. If these businesses can deliver, Trent’s stock could bounce back.
What should investors do?
For investors holding shares in Trent, the decision to hold or sell depends on individual risk tolerance. For those confident in the company’s ability to stabilise its new business lines and bounce back, holding onto shares may be the best choice. However, for those more cautious about short-term growth, cutting losses or selling might be a reasonable option.
Ultimately, the key takeaway is to stay informed, keep an eye on company updates, and adjust your investment strategy accordingly.
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Conclusion
Trent’s 11% drop reflects the market’s reaction to lower-than-expected growth. Investors should decide based on their risk tolerance and confidence in Trent’s long-term recovery. While the company has strong expansion plans, its newer ventures still need time to stabilise. For those with patience, holding could be the way forward. However, for more cautious investors, reassessing the position might be a good idea. Stay informed and adjust as needed.
