Trent Limited faces revised analyst expectations as Goldman Sachs maintains its Neutral rating while cutting the target price to ₹4,080 from ₹4,110. The brokerage firm has expressed concerns about the company's growth trajectory and profitability outlook despite recent strong revenue performance.

Revenue Growth Shows Moderation

The company reported approximately 18% year-on-year revenue growth in Q4, though this represents a deceleration from previous quarters. Goldman Sachs highlighted that like-for-like (LFL) growth has moderated to a modest 3-4%, indicating challenges in same-store sales performance across the retail network.

Store Expansion Faces Headwinds

While Trent has been pursuing aggressive store expansion, Goldman Sachs noted that the pace of store-led growth is slowing due to Zudio format overlap in existing markets. This overlap is creating cannibalization effects, reducing the incremental revenue contribution from new store openings and impacting the overall expansion strategy's effectiveness.

Operating Leverage Concerns

The brokerage firm highlighted weakening operating leverage, with earnings before interest and tax (EBIT) declining by approximately 9% despite revenue growth. This deterioration in operational efficiency suggests that the company is facing challenges in maintaining profitability margins while scaling operations.

Margin Pressure from Input Costs

Goldman Sachs identified margin risks stemming from raw material inflation as a key concern for Trent's future profitability. The rising input costs are expected to pressure gross margins, particularly affecting the company's ability to maintain competitive pricing while preserving profit margins across its retail formats.

Earnings Outlook Below Consensus

The revised analysis indicates that Trent's earnings per share (EPS) for FY27-28 is likely to fall below market consensus expectations. This downward revision reflects the combined impact of slower growth momentum, margin pressures, and operational challenges facing the retail chain in the medium term.

Trent Limited has successfully concluded its board meeting held on March 26, 2026, with directors approving the proposal for issuing unsecured redeemable non-convertible debentures worth up to ₹500.00 crore on a private placement basis. The meeting, which commenced at 2:00 p.m. and concluded at 6:45 p.m., addressed the company's debt refinancing strategy as existing debentures approach maturity.

Board Meeting Outcomes

The board of directors formally approved the NCD issuance proposal during their scheduled meeting, with the authorization falling within the permissible borrowing limits under Section 180 of the Companies Act 2013. The approval is subject to all applicable regulatory and statutory approvals as required by law.

Committee Authorization

The board has authorized the Borrowing and Investment Committee to finalize all terms related to the issuance and allotment of the NCDs. This delegation enables efficient execution of the debenture program while maintaining proper corporate governance oversight. The committee will handle the detailed structuring and timing of the actual issuance.

Existing Debenture Context

The company's current debenture portfolio includes 5,000 rated listed unsecured redeemable non-convertible debentures worth ₹500.00 crore, issued on May 31, 2021, through private placement. These existing instruments are listed on the Wholesale Debt Market segment of NSE and are scheduled for redemption on May 29, 2026.

Regulatory Compliance

The board meeting outcome was communicated pursuant to Regulations 30 and 51(2) of the SEBI Listing Obligations and Disclosure Requirements Regulations 2015. Company Secretary Krupa Anandpara signed the official communication to both NSE and BSE, ensuring compliance with listing requirements. The company will provide detailed terms as required under Schedule III of SEBI Listing Regulations upon actual issuance and allotment of the NCDs.