Trent reported a 21.9% rise in consolidated revenue from operations, reaching Rs 5,873.14 crore for the second quarter compared to Rs 4,817.60 crore a year earlier. Chairman Noel N Tata credited steady consumer demand across core retail banners for the momentum. Brokerages like Elara Capital and Nuvama highlighted operating efficiencies that counterbalanced escalating employee expenses, although Systematix cautioned that dense footprint expansion might cause localized sales cannibalization.
Key points
Expanding retail operations through Zudio and Westside formats continues to drive medium-…: Expanding retail operations through Zudio and Westside formats continues to drive medium-term earnings visibility.
Improved operational efficiency across rentals and expenses helped mitigate the pressure…: Improved operational efficiency across rentals and expenses helped mitigate the pressure of rising employee costs.
Aggressive additions of retail locations could introduce risk of revenue cannibalization…: Aggressive additions of retail locations could introduce risk of revenue cannibalization in overlapping trade catchments.
Sources checked by our analysis pipeline: 1
Consolidated revenue from operations on a consolidated basis rose 21.9% YoY to Rs 5,873.14 crore in Q2FY27, up from Rs 4,817.60 crore in the year-ago period. Speaking on the company's performance, Noel N Tata, Chairman of Trent, said its brands saw solid traction during the quarter, with consumer sentiment remaining robust despite the relatively inflationary environment.
Buy, sell or hold Trent shares after Q2
Elara Capital upgraded Trent to 'Buy' from 'Accumulate' and named it a top sector pick, raising its target price to Rs 3,600 from Rs 3,500. The upgrade reflects stronger medium-term earnings visibility and improving return ratios. The brokerage believes the 7% correction from the stock's three-month peak offers an attractive entry point. It projects EPS growth to accelerate to around 28% by FY28. The revised target price is based on 64 times September 2028 estimated standalone earnings.Nuvama has assigned a Buy rating and a target price of Rs 3,466 per share. It said that another way to look at the operating performance is that at just mid-single-digit LTL growth, Trent achieved a 96bp YoY increase in…
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