Shares of Trent, one of India’s leading retail giants, experienced a significant downturn on Monday, plummeting by as much as 19% during intra-day trading on both the BSE and the National Stock Exchange. This sharp decline marked the most substantial single-day drop since March 2020, highlighting the ongoing challenges within the retail sector.

Retail Sector Challenges

The broader retail market is currently grappling with headwinds, as evidenced by the Nifty-50 index, which fell by around 4% amid global market fears of a potential trade war leading to a recession. Trent emerged as the biggest loser in this index, reflecting investor concerns.

Despite showing a 28% increase in revenue for the March quarter, totaling Rs 4,334 crore, Trent’s growth fell short of its typical five-year compound annual growth rate (CAGR) of 36%. Analysts noted that although Trent expanded its footprint by adding 132 Zudio stores and 13 Westside outlets during the quarter, the overall growth trajectory appeared to be slowing.

Revenue Growth Insights

Interestingly, while Trent did not disclose its same-store sales growth for Q4, analysts estimate this metric softened to approximately 5-6% from 8-9% in Q3FY25. Despite a 39% year-on-year revenue increase, reaching Rs 17,624 crore for FY25, investor sentiment remains cautious due to rising competition, particularly from the Reliance-Shein partnership, which is also gaining traction as a value retailer.

Abhijeet Kundu, an equity analyst at Antique Stockbroking, pointed out that the 28% revenue growth recorded this quarter is the slowest since the pandemic-induced disruptions in January-March 2021. He remarked, "After consistently achieving strong double-digit growth, the high base effect is starting to temper Trent’s growth momentum."

Store Expansion and Market Performance

During FY25, Trent successfully opened 284 stores, including 240 Zudio and 40 Westside locations, maintaining a steady expansion pace. As of March 31, 2025, the company boasted a retail network comprising 248 Westside stores and 765 Zudio outlets.

Having seen its stock value more than double in both 2023 and 2024, Trent’s momentum has noticeably stalled in 2025, with an approximate 36% decline year-to-date, positioning it as the least-performing stock in the Nifty 50 index, according to sector analysts.

In summary, while Trent continues to grow its network and maintain a robust revenue stream, the stock’s recent performance raises questions about its future trajectory amidst evolving market dynamics and intensified competition.