Trent Limited has approved the grant of 11,13,500 stock options to eligible employees under its Employee Stock Option Plan 2026. The decision was taken by the company's Nomination and Remuneration Committee during a meeting held on June 19, 2026. This move follows shareholder approval obtained via a postal ballot on May 27, 2026.

The granted options are exercisable into an equivalent number of fully paid-up equity shares, each with a face value of ₹1. The exercise price for these options has been fixed at ₹2,652 per share. The scheme is compliant with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Key Details of the Grant

The options will vest based on the fulfilment of performance conditions prescribed by the Nomination and Remuneration Committee. Once vested, the options can be exercised within a maximum period of one year from the date of vesting. As of the current date, no options have vested, exercised, or lapsed.

The committee's meeting commenced at 11 a.m. and concluded at 2:30 p.m. on June 19, 2026. The disclosure was submitted to the stock exchanges in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Citi has reiterated its Sell rating on Trent Limited, setting a target price of ₹2,733. The brokerage's assessment reflects a nuanced view of the company's operational landscape, balancing demand-side resilience against persistent cost headwinds and execution risks.

Zudio Demand and Growth Runway

Citi acknowledges that consumer demand for Trent's value fashion format, Zudio, has remained resilient, with the brokerage noting a larger-than-expected runway for the brand's expansion. This suggests that Zudio's addressable market and growth potential may be more substantial than previously estimated, providing a degree of support to the company's medium-term outlook.

Key Concerns: Supply-Side Inflation and Execution Challenges

Despite the positive demand signals, Citi highlights several concerns that underpin its cautious stance. The following factors are central to the brokerage's Sell thesis:

• Ongoing supply-side inflation: Cost pressures from the supply chain continue to weigh on the company's margin profile.
• Execution challenges: The brokerage points to execution risks as a key variable that could impact the company's ability to sustain its growth trajectory.
• Cost management approach: Trent is managing inflationary pressures through sourcing efficiencies and operational improvements rather than implementing full price hikes, which limits the extent to which cost increases can be passed on to consumers.

Long-Term Optionality: Star and Lifestyle Adjacencies

Citi also notes that Trent's Star format and its foray into new lifestyle adjacencies represent sources of long-term optionality for the business. While these segments are not the primary driver of the current rating, they are recognised as potential contributors to the company's broader strategic positioning over the longer term.

Analyst Outlook

Overall, Citi's maintained Sell rating with a target price of ₹2,733 reflects a view that while Trent benefits from resilient demand and a credible long-term growth story through Zudio, Star, and lifestyle adjacencies, near-term headwinds from supply-side inflation and execution challenges present meaningful risks. The company's preference to absorb cost pressures through internal levers rather than price increases is seen as a constraint on margin recovery in the current environment.