Trent’s recent performance on the stock market has raised eyebrows, with its share price plummeting by over 19%, hitting an intra-day low of Rs 4,488 on the National Stock Exchange. This significant drop came on the heels of the company’s disappointing Q4 business update, which revealed a slower growth trajectory. Although the stock experienced a minor bounce back, it remains significantly down, reflecting broader market sentiments.

Trent’s Q4 Sales: A Closer Look

In the latest quarterly report, Trent, a key player in the Tata Group’s fashion retail sector, posted revenues of Rs 4,334 crore, marking a year-on-year increase of 28%. However, this growth fell short of the company’s five-year Compound Annual Growth Rate (CAGR) of 36%. The disappointing figures were compounded by a general feeling of market unease, which contributed to the ongoing sell-off. Notably, this revenue growth also contrasted sharply with the 39% increase reported in FY25, where annual revenue reached Rs 17,624 crore.

Expansion Efforts in Q4

During the March quarter, Trent expanded its footprint by launching 132 Zudio stores and 13 Westside outlets. By the end of March 2025, the company operated 248 Westside stores and 765 Zudio outlets, including 2 located in the UAE. Additionally, Trent introduced 30 new outlets across various lifestyle segments.

Trent’s Q3 Performance Insights

Looking back at Q3 FY25, Trent demonstrated a robust performance with a 33% year-on-year surge in consolidated net profit, reaching Rs 497 crore, up from Rs 374 crore the previous year. The revenue from operations for this quarter stood at Rs 4,657 crore, reflecting a 34% increase compared to Rs 3,467 crore in the same quarter of the prior fiscal year.

Stock Performance Analysis

Trent’s stock has faced significant headwinds, experiencing a 13% drop over the last five trading days. Over the past month, the shares have declined by 5.2% and have plummeted more than 36% in the last six months. Despite these challenges, it’s worth noting that Trent’s stock has appreciated by 21% over the past year.

In comparison, the Nifty 50 benchmark index has also struggled, falling by 6.3% in the last five trading sessions, 2.5% over the month, and 11.3% in the past six months. Interestingly, the Nifty 50 index has seen a 3% decline over the last year.

Conclusion

Trent’s recent stock market fluctuations highlight the challenges the company faces amid shifting consumer sentiments and economic conditions. As the retail landscape continues to evolve, stakeholders will be keeping a close eye on Trent’s strategic decisions and performance in the upcoming quarters.