Trent Ltd Reports Decline in Q4 Profits Amid Revenue Growth

In an unexpected turn of events, Trent Ltd, a prominent part of the Tata Group, reported a staggering 46.4% year-on-year decrease in its standalone profit after tax (PAT) for the quarter ending March 2025. The company’s PAT dropped to ₹350 crore, compared to ₹654 crore during the same period last year. Although revenues saw an increase, the decline in profits has raised eyebrows among investors.

Financial Highlights for Q4 FY25

• Standalone Revenue: Trent experienced a 29% year-on-year surge in revenue, reaching ₹4,016 crore in the March quarter, although this reflected a nearly 10% decrease from the previous quarter.
• Quarterly PAT Comparison: Compared to the ₹469 crore reported in the December 2024 quarter, the PAT fell by 25%.

Operating Margins Improve

Trent’s operating EBIT margin for the fourth quarter of FY25 improved to 9.3%, up from 8.3% in the same quarter of the previous fiscal year. This suggests that while profits dipped, the company is effectively managing its operations.

Expansion Strategy and Store Growth

In FY25, Trent aggressively expanded its footprint, adding 40 Westside and 244 Zudio stores, while consolidating the same number of stores for both chains. As of March 31, the company’s portfolio comprised:

• 248 Westside Stores
• 765 Zudio Stores (including two in the UAE)
• 30 Stores in various other lifestyle concepts

Trent’s growth strategy also included entry into 64 cities and towns, focusing on Tier 2 and Tier 3 locations. The company expressed optimism about customer traction and brand awareness, stating, “The traction from customers has been encouraging given the growing awareness of our brands across markets.”

Online Revenue Surge

Additionally, online sales saw a remarkable 43% growth, contributing to over 6% of Westside’s total revenue. The like-for-like growth in the fashion segment for Q4 FY25 was in the mid-single digits, while the overall annual growth reached double digits.

Consolidated Financial Performance

On a consolidated basis, Trent’s PAT plunged 55% year-on-year to ₹318 crore for Q4 FY25, compared to ₹704 crore last year. Despite the profit downturn, the total revenue increased to ₹4,217 crore, marking a 28% rise from ₹3,298 crore in the same quarter of FY24.

Dividend Announcement

Trent’s board has also proposed a ₹5 per share dividend, pending shareholder approval. The dividend, if approved, will be distributed shortly after the 73rd Annual General Meeting. Over the past year, Trent has offered an equity dividend of ₹3.20 per share, resulting in a modest yield of 0.06%.

Market Reaction

Interestingly, despite the notable profit decline, Trent’s share price rallied towards the end of the trading session post-announcement. The stock closed at ₹5,380.40, reflecting an increase of 3.28% on the Bombay Stock Exchange (BSE).

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