Trent Ltd. Q2 FY26 Update: Revenue Growth Amidst Market Scrutiny

Key Financial & Operational Highlights Q2 FY26 Revenue: The company reported a 17% year-on-year (YoY) increase in standalone revenue from operations, reaching ₹5,002 crore, compared to ₹4,260 crore in the corresponding quarter of the previous year. H1 FY26 Performance: For the first half of the fiscal year, revenue saw a robust 19% YoY growth, climbing to ₹10,063 crore. This performance highlights continued strong consumer demand for its primary retail formats, Westside and Zudio. Aggressive Network Expansion: Trent continued its rapid store expansion, adding a net of 53 new outlets in Q2. This includes 13 Westside stores and 40 Zudio stores. As of September 30, 2025, the company's portfolio stands at 261 Westside stores and 806 Zudio stores. Despite the solid operational metrics, the market has responded with caution. Stock Performance: Trent's shares declined by as much as 4% following the announcement, extending previous losses. The stock was last trading approximately 3.6% lower at ₹4,606. Moderating Growth: The 17% revenue growth in Q2 indicates a slight moderation compared to the 20% growth seen in Q1 FY26. This trend has drawn investor attention, especially when contrasted with the much higher growth rates of the prior fiscal year. Analyst Concerns: Reflecting the sentiment of moderating momentum, Morgan Stanley has reportedly cut its target price for the stock. This follows earlier concerns from brokerage firms like Bernstein, which had flagged a significant slowdown from the 57% revenue growth recorded in Q1 FY25. In summary, while Trent's expansion and revenue figures remain strong, the market is focused on the decelerating pace of growth. Investors will be closely watching for margin details and management commentary in the full quarterly results to assess future trajectory.