Trent reports 99 bps margin expansion in Q2

Trent Ltd (

) expanded its standalone EBITDA margin by 99 basis points to 18.2% in Q2FY27. Revenue rose 22.5% year-on-year to ₹5,788 crore, while EBITDA increased nearly 30%, indicating profitability grew faster than sales. The quarter showed early signs of demand recovery. Like-for-like growth in Trent's fashion portfolio improved to mid-single digits from low-single digits in Q1. Westside is estimated to have outperformed on same-store sales, while emerging categories such as beauty & personal care, innerwear and footwear contributed more than 21% of revenue. What stands out is that margin expansion came despite inflationary pressures and supply-chain challenges. This suggests Trent's sourcing efficiencies and supplier relationships are helping offset cost pressures. For investors, that is as important as revenue growth because sustained margin gains can drive earnings growth even if demand remains uneven. Store expansion remains a key growth lever. Trent added a net 10 Westside and 17 Zudio stores during the quarter. Nearly 85% of new Zudio stores were opened in peripheral growth markets and Tier-II cities and beyond. The company now operates 311 Westside stores, 999 Zudio stores and 32 stores across other lifestyle concepts. The headline margin improvement is encouraging, but the bigger question is whether like-for-like growth continues after the festive season. Expansion into smaller markets offers a long runway, although these locations typically take longer to mature. Rising competition and inflation remain important risks. View: The quarter strengthens the case for Trent's earnings growth story. Sustained same-store sales improvement and profitability at Westside and Zudio will be more important to track than store additions alone. Disclosure: This post is for information and education purposes only and should not be construed as investment advice. Please do your own research before making any investment decisions.