Trent Reports 11.3% Profit Growth and 15.9% Revenue Increase in Q2

Trent Limited , a prominent player in the Indian retail sector, has reported robust financial results for the second quarter, showcasing significant growth across key metrics.

Financial Highlights

The company's performance for Q2 demonstrates substantial improvement:

Metric	Q2 (Current Year)	Q2 (Previous Year)	YoY Change
Net Profit	₹373.00 crore	₹335.00 crore	+11.3%
Revenue	₹4,817.00 crore	₹4,156.00 crore	+15.9%
EBITDA	₹816.90 crore	₹645.90 crore	+26.5%
EBITDA Margin	17.00%	15.50%	+150 bps

Profit and Revenue Analysis

Trent's net profit for the quarter reached ₹373.00 crore, marking an 11.3% increase from the ₹335.00 crore reported in the same quarter last year. This performance demonstrates the company's strong financial management and operational efficiency.

Revenue for Q2 stood at ₹4,817.00 crore, up 15.9% from ₹4,156.00 crore in the corresponding period of the previous year. This impressive growth indicates robust sales performance and market demand for Trent's offerings.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed remarkable improvement, rising to ₹816.90 crore from ₹645.90 crore year-over-year, a substantial increase of 26.5%. This growth reflects enhanced operational efficiency and effective cost management.

Trent's EBITDA margin expanded to 17.00% from 15.50% in the previous year. This 150 basis points improvement in margin indicates the company's ability to manage costs effectively while driving revenue growth.

Growth Drivers

The strong performance was primarily driven by robust growth across Trent's flagship retail brands, Westside and Zudio. These brands have played a crucial role in the company's expansion and market penetration strategies.

Market Response

Despite the positive results, Trent's shares closed 1.3% lower at ₹4,618.50 ahead of the results announcement. This movement suggests that the market may have already priced in expectations of strong performance or that investors are taking a cautious stance in the short term.

Conclusion

Trent's Q2 results demonstrate the company's ability to achieve significant growth in a competitive retail environment. The double-digit increases in profit and revenue, coupled with margin expansion, indicate effective business strategies and operational execution. As the retail sector continues to evolve, Trent's performance suggests it is well-positioned to capitalize on market opportunities and navigate potential challenges in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.66%	-1.18%	-9.54%	-23.44%	-38.22%	+522.72%

Trent Ltd , a prominent player in India's retail sector, is set to announce its September quarter earnings on Friday. The company, known for its Westside and Zudio store formats, is expected to show strong growth driven by aggressive store expansion, according to analyst estimates.

Revenue and Profit Projections

Analysts from four brokerages have provided estimates for Trent's Q2 FY2024 performance:

Metric	Growth (YoY)	Estimated Range
Revenue	17-21%	₹4,722.00 crore - ₹5,016.00 crore
Net Profit	3-33%	Not specified
EBITDA	21-32%	Not specified

The wide range in net profit growth estimates suggests varying opinions on the company's bottom-line performance for the quarter.

Store Expansion and Operational Performance

Trent's growth strategy appears to be centered around rapid store expansion:

Added 31 Zudio stores during Q2
Opened 6 new Westside stores in the same period

This aggressive expansion is expected to be a key driver of the projected revenue growth.

Margins and Efficiency

Analysts project EBITDA margins to be in the range of 16.5-17.5%. The company's operational performance is anticipated to remain strong, supported by:

Scale efficiencies
Cost savings from RFID (Radio-Frequency Identification) implementation

However, margins may face some pressure due to:

Higher mix of Zudio format stores (typically lower-margin)
Seasonal effects from festive period promotions

Key Focus Areas

Investors and analysts will be paying close attention to management commentary on:

Current demand trends
Same-store sales growth guidance
Future store expansion plans

Upcoming Investor Meeting

In a recent corporate filing, Trent has announced an upcoming one-to-one meeting with Valiant Capital, scheduled for November 12, 2025. While this meeting is beyond the immediate earnings announcement, it underscores the company's ongoing engagement with institutional investors.

As Trent prepares to unveil its Q2 results, the market will be watching closely to see if the company's expansion-driven strategy translates into strong financial performance amidst evolving retail dynamics in India.