Trent Limited shares nosedived up to 8.30% to ₹4,060.65, wiping out ₹13,000 crore in market value, despite the Tata Group retailer posting a 17% year-on-year revenue jump to ₹5,220 crore in the December quarter. The stock emerged as the biggest laggard on the Nifty 50, trading 7% lower at ₹4,103.10 against the previous close of ₹4,429.80. The market's brutal verdict reflects mounting concerns over weakening same-store sales and slowing revenue per square foot, a critical metric that strips out the boost from aggressive store expansion.

Financial Performance Shows Growth Deceleration

The company's Q3 performance reflects a continued deceleration in growth momentum, with investors punishing the Zudio and Westside operator for what analysts called a worrying slowdown. For the nine months ended December, Trent recorded revenue of ₹14,604.00 crores compared to ₹12,368.00 crores in the corresponding period of the previous year, representing an 18% year-over-year growth.

Trent has now posted six consecutive quarters of sub-50% growth amid aggressive store additions. The growth trajectory shows: Q3 at 17%, Q2 at 16%, and Q1 at 19%, following 34% and 27% in prior quarters. Despite adding 48 Zudio stores and 17 Westside outlets during the quarter, the company's ability to generate sales from existing space continues to deteriorate sharply.

Store Expansion Amid Productivity Concerns

As of December, Trent operated a total network of 1,164 stores, including 278 Westside stores and 854 Zudio outlets. The store addition spree continues at breakneck speed, with the retailer opening a net 17 Westside stores and 48 Zudio outlets during the quarter.

In the nine months, Westside added a net of 30 new stores compared to an average of just 16 over the previous years. Zudio's expansion has been aggressive, though the format opened fewer stores than expected during the quarter. About 60% of incremental Zudio store additions were in under-penetrated markets in North and East India.

Analyst Concerns Over Revenue Per Square Foot

Brokerage views highlight growing concerns over the company's operational metrics. Average revenue per square foot declined 15.70% year-on-year, marking the third consecutive quarter of double-digit deterioration. The metric saw growth of just 1.50% compared to 4.90% in the previous quarter.

UBS captured investor anxiety with its blunt assessment: "No respite from weaker growth trajectory. Q3 weak again at 17%, misses expectations." Citi noted that the company's reported standalone revenue growth came in ahead of estimates at 16.90% versus 15.30%, but that marginal beat was entirely driven by store additions rather than improved productivity.

Market Challenges and Future Outlook

The company faces several operational challenges despite its expansion success. Around 54% of Zudio's current network has been added in the last 18 months, with these stores expected to start contributing to same-store sales growth calculations from the upcoming period onwards. Analysts attribute the slowdown to aggressive store expansion, declining revenue per square foot, and cannibalization in tier-2 and tier-3 towns.

For Westside, memberships grew more than 50%, which could act as a lever for improving store productivity over time. However, sustaining margins and improving store productivity remain key challenges for Trent as it navigates the mixed consumption environment and competitive retail landscape. The stock's premium valuation left no room for disappointment, leading to the sharp market reaction despite continued operational momentum.

Trent Limited has issued a regulatory clarification to stock exchanges regarding recent significant movement in its share trading volume. The company responded to an inquiry from BSE Limited dated January 5, 2026, addressing concerns about unusual trading activity in its shares.

Exchange Communication Details

The clarification was submitted to both major Indian stock exchanges where Trent shares are listed:

Company's Response to Volume Movement Inquiry

Trent Limited received BSE's inquiry letter numbered L/SURV/ONL/PV/APJ/2025-2026/836 via email at 12:44 PM on January 5, 2026. The exchange sought clarification regarding the significant movement in the company's share volume in recent trading sessions.

Regulatory Compliance Statement

In its response, Trent Limited emphasized its commitment to regulatory compliance and transparent disclosure practices. The company stated that all material information potentially affecting its operations and performance has been disclosed to stock exchanges in a timely and accurate manner.

Key aspects of the company's compliance statement include:

• All necessary disclosures made in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Regular and timely disclosure of material information to stock exchanges
• Adherence to principles governing disclosure obligations and requirements
• Maintenance of transparency in all material communications

Material Information Disclosure

Trent Limited clarified that apart from routine announcements made in the ordinary course of business, the company is not aware of any undisclosed material information that could influence share price or volume performance. This statement addresses potential market speculation about undisclosed developments that might have triggered the unusual trading activity.

Document Authentication

The clarification letter was signed by Krupa Anandpara, Company Secretary (Membership No. A16536), and digitally authenticated on January 5, 2026, at 14:41:42 IST, ensuring the document's authenticity and regulatory compliance.