TRENT

's Q1 Growth Slowdown Sparks 12% Stock Plunge

.’s shares plummeted by as much as 12% to around ₹2,947 following a lower-than-expected June quarter (Q1FY27) revenue update, making its premium market valuation highly vulnerable. Missed Market Expectations: The retailer reported a standalone revenue growth of 18.5% year-on-year to ₹5,666 crore, falling short of the 22% growth projection set by analysts at Motilal Oswal Financial Services. Growth Reversal: The sudden moderation disrupted investor optimism built during Q4FY26, when revenue growth had briefly rebounded to 20.2% after six consecutive quarters of deceleration between FY25 and FY26. Expansion Over Efficiency: The first-quarter revenue gains were primarily driven by an aggressive 26% year-on-year increase in store count rather than organic, same-store sales growth. Falling Store Productivity: Revenue per store dropped by approximately 5% year-on-year, a steeper decline than the 4% drop seen in the previous quarter, indicating a slow ramp-up for new locations or retail cannibalization. Current Footprint: Despite the cooling consumption market, Trent continued its physical footprint expansion by adding 19 new Zudio outlets and one Westside store, bringing their total counts to 982 and 301 respectively.