TRENT

Posts Muted Q2 Growth, Adds Stores and Launches Gen-Z Brand

reported a subdued Q2FY26 performance, with revenue and profit missing analyst estimates due to seasonal factors, promotional costs, and lower contribution from its Star business. Despite this, the company continues to expand its retail footprint and diversify its brand portfolio. - Financial Performance: Revenue rose 15.9% YoY to ₹4,817.68 crore, below Bloomberg’s estimate of ₹4,998.30 crore. Net profit increased 11.34% YoY to ₹373.42 crore, missing the expected ₹446.3 crore. Margin softness was attributed to festive discounting and aggressive store expansion. - Retail Network Expansion: Trent added 13 Westside and 40 Zudio stores in Q2, bringing its total to 261 Westside and 806 Zudio outlets (including 3 in the UAE). The company now operates over 1,100 stores, reinforcing its store-led growth strategy. - Brand Portfolio Update: Trent launched a new youth-focused brand, Burnt Toast, aimed at Gen-Z consumers with bold fashion offerings. Initial response has been positive. Westside remains the flagship format, Zudio targets value fashion, and Star operates in food and grocery retail. - Star Business Impact: Star’s revenue declined 2.2% YoY to ₹879 crore amid intense competition. Since it’s accounted under the equity method, its lower contribution impacted Trent’s consolidated bottom line. Analysts note that while growth has moderated due to a high base, Trent continues to outperform peers. Chairman Noel Tata emphasized the company’s focus on growth and customer experience. Antique Stock Broking sees Trent well-positioned for medium- to long-term resilience in a competitive retail landscape.