Should you buy, sell, or hold Trent shares after announcing its Q3 results?

Synopsis:- Shares rose nearly 3% after Q3FY26 results showed 15% YoY revenue growth to ₹5,345 crore and 36% QoQ profit jump to ₹510 crore. Brokerages remain divided, with targets ranging from ₹4,350 to ₹5,000, citing margin sustainability and weak like-for-like growth concerns.

The shares of the prominent retail company gained up to 3 percent in today’s trading session after the company reported positive Q3FY26 earnings, however, brokerages have mixed views.

With a market capitalization of Rs 1,45,101.09 crore, the shares of Trent Ltd were trading at Rs 4,075.45 per share, increasing around 2 percent as compared to the previous closing price of Rs 4,013.20 apiece.

Q3FY26 Highlights

The shares of Trent Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which revenue increased by  15 percent on a year-on-year basis from Rs 4,657 crore in Q3FY25 to Rs 5,345 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 11 percent from Rs 4,818 crore in Q2FY26 to Rs 5,345 crore in Q3FY26.

Moreover, net profit increased by 3 percent on a yearly basis from Rs 497 crore in Q3FY25 to Rs 510 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 36 percent from Rs 373 crore in Q2FY26 to Rs 510 crore in Q3FY26. 

The company continues to expand its retail footprint aggressively, now operating over 1,100 large-box fashion stores across 274 cities. During Q3FY26, it added 17 Westside and 48 Zudio stores, including one in the UAE. As of December 31, 2025, the portfolio comprised 278 Westside and 54 Zudio stores, spanning over 15 million sq. ft. across brands.

Management Comments

Chairman Noel N Tata highlighted that despite operating on a higher base, the fashion business delivered category-leading growth during the quarter. He noted improving customer sentiment and expressed confidence in the medium-term outlook. The company remains focused on portfolio expansion, product elevation, and enhancing store experiences while building a resilient, direct-to-customer model across segments.

In the Star business, own brands now contribute over 74% of revenues, reflecting stronger private-label traction. However, store expansion has been slower than expected, and management plans to accelerate growth ahead. While the food retail space remains highly competitive, the company is recalibrating its portfolio to build a future-ready and scalable business.

Brokerage comments

As per Bernstein, Trent’s margin improvement appears sustainable, and it has retained an “outperform” rating with a ₹5,000 target (upside of 22% from the current level of Rs 4,075). However, future stock outperformance will likely hinge on same-store sales growth, as employee cost leverage benefits have largely played out. The brokerage believes operational discipline remains intact despite recent volatility.

However, Jefferies has maintained a “hold” rating with a ₹4,575 target, noting that quarterly revenue growth hit a multi-quarter low. While operating performance surprised positively, it prefers to stay cautious after the sharp correction, awaiting clearer signs of sustained demand recovery before turning constructive.

Additionally, Citi and Goldman Sachs remain guarded with targets of ₹4,350 and ₹4,530, respectively. Citi flagged risks to margin sustainability due to business mix changes, while Goldman highlighted negative like-for-like growth in Q3 as a concern for FY27–28 estimates, signaling potential pressure on growth visibility.

Trent Limited is a leading Indian retail company and part of the Tata Group, operating popular brands like Westside and Zudio. Focused on fashion and lifestyle retail, it has built a strong nationwide presence through large-format stores and a growing direct-to-customer business model.

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