Trent shares rise 2% after Q1 FY26 results. Motilal Oswal, Citi, and Bernstein maintain positive calls, but flag slow revenue growth. Buy, sell or hold?

Mumbai, August 7, 2025 – Trent Ltd, the Tata Group retail arm behind Westside and Zudio, posted its Q1 FY26 earnings, lifting its stock price by nearly 2% in early trade. The company reported a net profit of ₹423 crore, up 24% YoY, and a 20% rise in revenue, yet brokerages remain cautious due to slowing revenue momentum.

So, should investors buy, sell, or hold Trent stock at this time?

🧾 Trent Q1 FY26 Results: Key Financial Highlights

🛍️ Business Growth: Store Footprint & Categories

• Total stores:
  • Westside: 248
  • Zudio: 766 (including 2 in UAE)
  • Other Lifestyle Concepts: 29
• Total retail space: Over 13 million sq. ft
• Emerging categories (Beauty, Innerwear, Footwear, LGDs):
  • Now contributes 21%+ of total revenue

“We’re driving higher density and evolving the quality of our store portfolio,” said Noel Tata, Chairman, Trent.

📉 Slow Revenue Growth Flags Concerns

While margins improved significantly, like-for-like growth was in low single digits, and revenue per square foot declined. This has made analysts cautious about Trent’s future revenue acceleration despite strong brand positioning.

🧠 Expert Brokerage Insights: Buy, Sell or Hold?

🟢 Motilal Oswal – Buy (TP: ₹6,400)

• Upside potential: ~19.5%
• Notes strong EBITDA growth (37% YoY), beating estimates by 17%
• Flagged concerns:
  • Deceleration in revenue
  • Gross margin pressure
  • Star business underperformed (7% YoY growth)

“Effective cost controls reflect Trent’s variable cost strength.”

🟢 Bernstein – Outperform (TP: ₹6,500)

• Upside potential: ~21%
• Appreciates strong store performance
• Warns of significant revenue per sq. ft. reduction

🟢 Citi – Buy (TP: ₹7,150)

• Highest upside potential: ~33%
• Believes Trent still outpaces other discretionary retail players
• Revenue growth is “slowing, but remains strong.”

🟡 Nuvama – Hold (TP: ₹5,850)

• Upside potential: ~9%
• Acknowledges strong margin gains
• Recommends wait-and-watch due to lower productivity trends

📊 Trent Share Price Trend: Volatile but Resilient

• Current price: ₹5,396.50 (as of Aug 7 morning trade)
• 5-day gain: +8%
• 1-month drop: –2%
• P/E ratio: ~125
• 52-week high/low: ₹5,622 / ₹2,070

Read more about Tata Group stocks’ recent movement on our platform.

🔎 What’s Driving the Stock Performance?

Positive Triggers

• Strong EBITDA growth beating expectations
• Margin expansion via controlled expenses
• Brand strength: Westside and Zudio maintain a high consumer recall
• Emerging categories gaining traction

Caution Flags

• Slowing revenue per sq. ft.
• Star business lagging
• High valuations (P/E 125)
• Like-for-like store growth muted

📢 Company Outlook: Long-Term Growth Intact?

Chairman Noel Tata remains optimistic:

“Both Westside and Zudio enjoy significant scale and customer love. We’re on track to build a scalable direct-to-consumer business.”

Trent aims to deepen its presence in key markets and increase revenue share from non-core categories, which could fuel future growth.

❓FAQs: Frequently Asked Questions

1. Why did Trent’s shares rise despite slow revenue growth?

Strong Q1 margins and beating EBITDA expectations helped lift investor confidence, even as revenue momentum slowed.

2. Is Trent stock a good buy now?

Analysts remain bullish long-term, but recommend cautious optimism due to decelerating revenue metrics.

3. What is the target price for Trent stock?

• Motilal Oswal: ₹6,400
• Bernstein: ₹6,500
• Citi: ₹7,150
• Nuvama: ₹5,850

4. What are the risks of buying T rent stock now?

High valuation, slow like-for-like growth, and underperformance in its Star business could weigh on future performance.

5. What’s driving the long-term optimism for T rent?

Strong execution, brand expansion, increasing contribution from emerging categories, and a resilient cost model.

https://www.bseindia.com/stock-share-price/trent-ltd/trent/500251/

📌 Conclusion: Buy, Sell, or Hold?

Trent’s Q1 FY26 results reflect strong operational efficiency, despite moderating revenue growth. The company continues to scale effectively in the Indian retail landscape, and brokerages still see double-digit upside potential.

👉 Buy if you believe in long-term growth and can handle volatility

✋ Hold, if you already own and wait for revenue acceleration

❌ Avoid fresh entry, if you are risk-averse or seeking value buys at lower P/E multiples

💬 Join the Discussion!

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