Tata Group Stock: Why did Trent share price fall by 8%...

Synopsis: Trent Limited posted Q3 FY26 updates, with 17% year-on-year standalone revenue growth, and growth remained flat sequentially and slowed compared to the stronger momentum seen in earlier quarters.

This Tata Group Stock, engaged in retailing apparel, footwear, accessories, food, grocery and other non-food products through various fashion and supermarket store formats across India, fell by 8.32 percent after the company announced updates of Q3 financial year 2026.

With a market capitalization of Rs. 1,46,478.61 crores, the share of Trent Limited has reached an intraday low of Rs. 4,060.65 per equity share, down nearly 8.32 percent from its previous day’s close price of Rs. 4,429.45. Since then, the stock has retreated and is currently trading at Rs. 4,100 per equity share.

Reason Behind the Fall:

Trent Limited has fallen by 8.32 percent after announcing revenue growth updates for Q3 FY26. Standalone revenue from the sale of products (excluding GST) stood at Rs. 5,220 crore, compared to Rs. 4,466 crore in Q3 FY25. This reflects a healthy year-on-year growth of 17 percent, driven by steady demand and improved business performance during the quarter.

Trent Limited’s revenue growth remained stable on a sequential basis, in line with the 17.05 percent standalone revenue growth recorded in Q2 FY26. However, the growth momentum was relatively slower compared to the stronger performance seen in Q3 FY25, Q4 FY25, and Q1 FY26.

For the nine months ended FY26, the company recorded standalone revenue of Rs. 14,604 crore, up from Rs. 12,368 crore in the same period last year. This represents an 18 percent year-on-year growth.

Citi noted that Trent’s standalone revenue grew 16.9 pecrent year-on-year in Q3, which was higher than its estimate of 15.3 percent. This outperformance was mainly due to faster store additions. During the quarter, Westside added 17 stores and Zudio added 48 stores, broadly in line with Citi’s expectations. For the year so far, store expansion has picked up pace compared to last year.

However, Citi also highlighted some concerns. Average revenue per square foot declined 15.7% year-on-year, showing pressure on store productivity. The brokerage explained that Q3 numbers were affected by an early festive season, even though comparisons benefited from a weaker base last year.

Morgan Stanley remained positive on Trent, stating that Q3 revenue growth was largely in line with estimates. It highlighted strong momentum in store expansion, especially at Westside and Zudio. In contrast, UBS was cautious, noting that Q3 growth of 17% was weaker than expected and pointed to a continuing slowdown in growth trends.

Store Portfolio:

As of December 31, 2025, Trent Limited continued to expand its retail presence across formats. The overall store portfolio stood at 1,164 stores, including 278 Westside stores, 854 Zudio stores (including 4 stores in the UAE), and 32 stores across other lifestyle concepts.

During Q3 FY26, the company added a net 17 Westside stores and 48 Zudio stores. For the nine-month period ended FY26, net additions stood at 30 Westside stores and 89 Zudio stores. This steady store expansion highlights the company’s growth strategy and strong demand for its retail brands.

Westside – Brand Portfolio

Trent Limited’s brand portfolio under Westside covers a wide range of fashion and lifestyle offerings. It includes in-house brands such as NUON, ETA, WES, LOV, Utsa, StudioWest, Ascot, Zuba, Gia Curves, and Westside Home. The portfolio caters to men, women, kids, and home segments, offering stylish, affordable, and contemporary products.

Company Overview:

Trent Limited is a leading Indian retail company under the Tata Group, focusing on fashion, lifestyle, and grocery sectors. Established from the former Lakme cosmetics business, it shifted to apparel retailing in 1998. The company operates multiple store formats across India and has begun international expansion.

Q2 Financial Highlights

Coming into financial highlights, Trent Limited’s consolidated revenue had increased from Rs. 4,157 crore in Q2 FY25 to Rs. 4,818 crore in Q2 FY26, which has grown by 15.90 percent. The net profit has also grown by 11.34 percent from Rs. 335 crore in Q2 FY25 to Rs. 373 crore in Q2 FY26.

Trent Limited’s revenue and net profit have grown at a CAGR of 56.18 percent and 252.58 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 30.7 percent and 30.4 percent, respectively. Trent Limited has an earnings per share (EPS) of Rs. 45.6, and its debt-to-equity ratio is 0.38x.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Tata Group Stock: Why did Trent share price fall by 8% today? appeared first on Trade Brains.