Trent Ltd. reported a strong standalone revenue growth of around 16% YoY in Q3 FY26, reinforcing brokerage expectations of 18–20% medium‑term sales growth, despite an increasingly unfavourable base.
ICICI Securities believes there will be a potential positive shift in investor sentiment, if Trent delivers revenue growth of >20%, possibly buoyed by some respite in competition or better demand traction in the near term.
In Q3 FY26, like-for-like growth in Trent’s fashion formats dipped marginally, primarily due to the festive season being advanced to Q2. According to ICICI Securities, this trend is expected to normalise, with LFL performance likely improving to mid‑single‑digit levels over the next few quarters.
Profitability remained a standout positive. Superior product mix, tighter cost controls, and operational efficiencies contributed to continued margin expansion, despite heightened competition and a heavy discounting environment. The brokerage notes that while medium-term revenue growth is likely to stabilise near the 18% range, stronger profitability should continue to support earnings growth.
ICICI Securities maintains an Add rating on the stock, citing a healthy growth runway supported by disciplined execution and improving operating metrics.
- Slower-than expected pick-up in discretionary consumption;
- rise in competitive intensity from peers (Reliance Trends, Max, Pantaloons etc.); and
- execution challenges in Zudio and other newer formats.
- Success of Zudio; and other pilot formats.
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