Trent Q3 Results: Fashion business like-for-like growth moderates, margin remains flat

Revenue for the period increased by nearly 35% to ₹4,656 crore. A CNBC-TV18 poll had expected a revenue growth of 35% from last year to ₹4,680 crore.

Trent’s net profit stood at ₹496.1 crore at the end of the December quarter, which was marginally lower with the CNBC-TV18 poll estimate of ₹519 crore. On a year-on-year basis, Trent’s net profit grew by 34%.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) growth for the quarter stood at 34% year-on-year. The ₹840 crore figure was in-line with expectations of ₹842 crore, while margin remained flat at 18.1%. The figure last year also stood at 18.1%.

The CNBC-TV18 poll expected a 200 basis points contraction in margins to 17.9%. The company’s like-for-like growth in the fashion business was in single digits, compared to a double-digit growth in the previous quarter as well as during the same quarter last year.

Trent now has 850 large-box fashion stores across 201 cities. It opened 14 Westside and 62 Zudio stores during the quarter. As of December 31, Trent had 238 Westside, 635 Zudio stores and 34 stores across other lifestyle concepts.

“We are also pursuing a store portfolio optimisation agenda. “This involves upgrading or consolidating smaller footprint stores with newer stores in more attractive micro markets,” the company said in a post-earnings statement.

Trent’s shares had declined earlier in the week over the relaunch of Chinese brand Shein in India by Reliance Retail as it is in direct competition with the Tata Group enterprise. The street feared that this may dent Trent’s strong growth trends over the years, triggering a sharp drop in its share price.

However, brokerage firm Goldman Sachs reiterated its “buy” rating on Trent with a price target of ₹8,300, which implied an upside potential of 40% from current levels.

Goldman Sachs wrote in its note that Zudio still has the potential to gain market share with low competitive risk as any new competitor will scale up gradually and not be disruptive.

It advised investors to use this recent weakness in shares of Trent as a buying opportunity.

Shares of Trent are trading 0.7% lower at ₹5,708. It still trades at 81 times financial year 2026 price-to-earnings multiple.