Trent Limited , a prominent player in the Indian retail sector, has reported strong financial performance for the second quarter of fiscal year 2026 (Q2FY26), demonstrating resilient growth and continued expansion of its store network.

Financial Highlights

Trent Ltd has announced impressive revenue growth for Q2FY26 and the first half of FY26:

The company's standalone revenue from the sale of products, including GST, reached ₹5,002.00 crores in Q2FY26, marking a significant 17% increase compared to the same quarter in the previous fiscal year. For the first half of FY26, Trent's revenue grew by an even more impressive 19%, totaling ₹10,063.00 crores.

Store Expansion

Trent continues to strengthen its retail presence across India and has even ventured into international markets:

• As of September 30, 2025, Trent's total store count stood at 1,101, including:
  • 261 Westside stores
  • 806 Zudio stores (including 3 in the UAE)
  • 34 stores across other lifestyle concepts

The company's expansion strategy remains robust, with a particular focus on its Zudio brand:

Market Position and Outlook

Trent's strong performance in Q2FY26 and H1FY26 underscores the company's solid market position and effective growth strategies. The consistent expansion of its store network, particularly the rapid growth of Zudio stores, indicates Trent's commitment to capturing a larger share of the Indian retail market.

The company's venture into the UAE market with Zudio stores also signals its ambitions for international expansion, potentially opening new avenues for growth beyond the domestic market.

As Trent continues to expand its retail footprint and drive revenue growth, investors and market watchers will likely keep a close eye on the company's performance in the coming quarters, especially given the evolving landscape of the retail sector in India and globally.

Trent Limited , a prominent player in the Indian retail sector, has experienced a significant downturn in its stock performance this year, emerging as the worst performer in the Nifty 50 index. The company's shares have declined by 33.00% year-to-date and a staggering 43.00% since its inclusion in the benchmark index.

Slowing Growth and Valuation Concerns

The once high-flying stock, which had been enjoying growth rates of up to 50.00%, has seen its growth trajectory slow to 20.00% over the past four quarters. This deceleration is attributed to several factors:

1. Densification leading to cannibalization
2. Consumer slowdown
3. High base effects

Despite the sharp decline, Trent's valuation remains elevated. The stock currently trades at a price-to-earnings (PE) ratio of 83x, down from 101x at the beginning of the year but still considered high by many market observers.

Shifting Investor Sentiment

The slowdown has not gone unnoticed by foreign institutional investors (FIIs). FII holdings in Trent have decreased significantly:

This reduction in FII holdings indicates a shift in investor sentiment towards the stock.

Analyst Optimism Persists

Despite the recent underperformance, analysts remain largely optimistic about Trent's prospects:

• 17 out of 26 analysts maintain a 'Buy' rating on the stock
• Average return potential: 27.00%

Analysts cite expectations of:

• 20-25% sales CAGR (Compound Annual Growth Rate)
• Margin expansion

Operational Highlights

Trent continues to demonstrate strong operational metrics:

• Revenue per square foot: Above ₹15,000
• Operating cash flows:
  • FY23: ₹455 crore
  • Current fiscal year: Over ₹1,120 crore
• Return on Capital Employed (ROCE):
  • 2022: 9.00%
  • Current: 31.00%

Zudio's Success Story

A bright spot in Trent's portfolio is Zudio, which has achieved a significant milestone:

• Became India's first $1 billion apparel label
• Current market share: 2.50%
• Room for expansion compared to international peers

Conclusion

While Trent's stock has faced significant headwinds, the company's operational performance and analyst optimism suggest potential for recovery. Investors and market watchers will be closely monitoring Trent's ability to navigate the current challenges and capitalize on its strong brand presence in the Indian retail market.