Trent Rallies 10% After Q2 Business Update, Market Cap Tops ₹1.5 Trillion

Trent Limited Sees 10% Surge Following Strong Q2 Revenue Growth

The impressive quarterly performance signals Trent’s robust growth trajectory amid aggressive expansion plans.

Strong Revenue Growth in Q2

Trent’s standalone revenue for the second quarter of FY27 rose by 23% year-on-year, reaching ₹5,788 crore, significantly surpassing market expectations of 18% growth. This increase was primarily attributed to a rise in store count, reflecting the company’s aggressive expansion strategy. For the first half of the financial year, revenue growth stood at 21%, totaling ₹11,454 crore.

The growth in revenue from merchandise sales was equally impressive, with a 23% increase in Q2 and a 21% rise for the half-year period. This performance underscores Trent’s ability to capitalize on its expanding footprint in the retail sector.

Expansion Milestones

Trent’s expansion efforts are evident as the company opened its 1,000th Zudio store during the quarter, contributing to a total of 1,342 stores across its Westside, Zudio, and other lifestyle brands. The addition of 10 stores for Westside and 17 for Zudio in the September quarter highlights Trent’s commitment to increasing its market presence.

Analysts view Zudio’s rapid growth as a key driver for Trent’s future success. Seema Srivastava, a senior research analyst at SMC Global, emphasized that the company’s long-term growth story remains strong, supported by robust revenue growth and an aggressive store expansion strategy.

Market Sentiment and Technical Analysis

Following the positive business update, Trent’s stock opened at ₹2,800 and quickly reached the upper price limit of ₹2,832.50, reflecting strong investor sentiment. Despite a 1% decline year-to-date and an 11% drop over the past year, the stock has delivered impressive returns over a longer horizon, with gains of 105% and 306% over the past three and five years, respectively.

Technical analysts are optimistic about Trent’s short to medium-term prospects. Harish Jujarey from Prithvi Finmart noted that the stock had recently halted its correction phase and crossed its 200-day moving average, suggesting potential for further upward movement. Immediate support is seen at ₹2,770, while a decisive move above ₹3,000 could lead to a rally towards ₹3,200-₹3,300.

Key Highlights

• Trent’s Q2 revenue grew by 23% YoY to ₹5,788 crore, exceeding expectations.
• Market capitalization surpassed ₹1.5 trillion following the stock surge.
• 1,000th Zudio store opened, contributing to a total of 1,342 stores.
• Stock performance includes a 105% gain over three years and 306% over five years.
• Technical indicators suggest potential for further price appreciation.

Investor Note: The strong quarterly results and aggressive expansion strategy position Trent as a compelling investment opportunity for long-term investors, despite recent volatility in its stock price.