Trent Q2 Profit and Revenue Miss Estimates Amid Rising Competition, Expands Store Network

Trent Ltd., the retail arm of the Tata Group, reported a 11.3% YoY rise in net profit to ₹377 crore for Q2 FY26—below Street estimates of ₹446 crore—on muted consumer sentiment and GST transitional issues. Revenue grew 16% to ₹4,818 crore, missing projections of ₹4,998 crore and marking its slowest growth in at least 16 quarters, falling short of its ~25% target. Despite the soft top-line performance, EBITDA rose 26.5% to ₹817 crore, in line with estimates, with margins expanding 150 bps to 17.5%, driven by operational efficiencies. The company continues to aggressively expand its footprint, increasing store count to 1,101 across 251 cities (from over 800 a year ago), focusing on tier II/III towns and emerging urban clusters. In a separate move, Trent’s board approved tendering its entire stake of 94,900 shares in Inditex Trent Retail India Pvt Ltd (ITRIPL)—the joint venture that operates Zara stores in India—under a buyback programme. This follows a gradual exit from the 51:49 JV, reducing Trent’s stake to 34.94% from higher levels over the past two years. While competition in apparel retail intensifies, Trent remains focused on scale and reach, betting on long-term growth through geographic expansion despite near-term margin and demand pressures.