On April 7, 2025, shares of Tata Group’s retail subsidiary, Trent, faced a significant sell-off, marking a troubling day for investors. The stock plummeted nearly 19%, making it one of the largest decliners on the Nifty 50 index. This dramatic fall was triggered by the company’s recent business update for the March quarter, raising concerns among investors regarding its valuations and the sustainability of its earnings.
A Noteworthy Decline
This latest drop extends Trent’s losing streak to three days, with investors reacting negatively to the company’s financial performance. The decline represents the steepest single-day loss since June 2024, causing a staggering ₹28,000 crore reduction in market capitalization. This is the most significant wealth erosion for Trent since March 2020.
- Current Performance: Down 43% from its 52-week high.
- Six-Month Loss: The stock has decreased by nearly 36%, underperforming both major indices and the broader consumption sector.
Financial Insights from Q4 FY25
In its March quarter update, Trent reported impressive revenue growth despite the stock’s downturn. The company achieved a standalone revenue of ₹4,334 crore for Q4 FY25, reflecting a 28% increase compared to ₹3,381 crore in Q4 FY24. For the fiscal year 2024-25, Trent’s total revenue reached ₹17,624 crore, a remarkable 39% rise from ₹12,669 crore in FY24.
Expansion of Retail Footprint
As of the end of March 2025, Trent boasted a retail network comprising:
- 248 Westside stores
- 765 Zudio stores, including two located in the UAE
- 30 additional stores across various lifestyle brands
During Q4 FY25, the company launched 13 Westside and 132 Zudio stores, contributing to total annual additions of 40 and 244 stores, respectively. Additionally, Trent streamlined its operations by consolidating three Westside and 24 Zudio stores during the quarter, highlighting its commitment to optimizing its retail network.
Conclusion
Despite the recent volatility in its stock price, Trent’s robust revenue growth and strategic expansion efforts indicate a solid foundation for future performance. Investors will be keenly watching how the company navigates these challenging market conditions in the coming quarters.
