Trent shares surged nearly 13% to a two-year high on Tuesday, marking their biggest single-day gain since August 2024, after the company's July-September quarter (Q2FY27) business update showed standalone revenue rising 23% year-on-year to ₹5,788 crore. According to The Economic Times, the stock hit the daily permissible upper circuit of 10% at ₹2,832 on the BSE after the company reported its fastest growth in six quarters. This represents the second instance in at least six quarters that revenue growth crossed 20%, with the stock experiencing its biggest single-day gain since August 2024. The strong performance came after the company's Q2 revenue growth of 23% was higher than brokerage house Motilal Oswal's estimate of 18%, with the revenue growth primarily driven by an increase in stores. Mayank Jain from Share.Market by PhonePe noted that the price movement represented an initial attempt at trend recovery following a multi-month decline from peak levels, with the stock now testing dynamic resistance at the 50-day Simple Moving Average of ₹2,871.4.
LIC's stake value in Trent increased by more than ₹531 crore in a single session as the stock rallied sharply following the strong Q2 business update. According to The Economic Times, LIC held a little over 3% stake in Trent at the end of the April-June quarter of FY27, and at the day's high of ₹2,832 per share, LIC's stake would be worth more than ₹4,695 crore, representing a notional profit of over ₹531 crore in just one session. The sharp gains added more than ₹17,540 crore to the market capitalisation of the Tata Group's retail arm. Promoter Tata Sons is the largest shareholder, owning more than 32% stake in Trent at the end of the first quarter of FY27, while Tata Investment Corp held over 4% stake and around 5 lakh retail shareholders own over 13% stake in the company.
Brokerage reaction has been broadly positive following Trent's Q2FY27 results, with multiple firms maintaining bullish stances. Goldman Sachs noted that Trent's revenue growth exceeded its estimates and sales productivity improved sequentially, with sales per store declining 1.7% in the second quarter, compared with a 5.6% decline in the first quarter. Goldman Sachs raised its target price to ₹3,010 from ₹2,960 following the strong performance. Morgan Stanley retained its Overweight rating and raised its target price to ₹3,406, saying Trent's 23% revenue growth beat its 20% estimate. Bernstein maintained an Outperform rating with a ₹3,500 target, calling the growth a strong positive surprise against its 18.5% estimate. BofA Securities has a Buy rating on Trent with a target price of ₹3,075, highlighting the company's differentiated retail platform spanning apparel, fashion, beauty, food and grocery. However, Citi retained its Sell rating with a ₹2,950 target, citing weak sales productivity, rising input costs and intensifying competition. Net store additions of 56 in H1FY27 also lagged the 58 added in the same period last year.
Trent Ltd delivered robust financial results for Q2FY27, with standalone revenue from operations rising 23% year-on-year to ₹5,788 crore compared to ₹4,724 crore in the corresponding period last year. According to the company's exchange filing, the company's revenue for the first half of FY27 increased 21% to ₹11,454 crore from ₹9,505 crore in H1FY26. Revenue from the sale of merchandise, excluding other operating income, also demonstrated strong growth of 23% year-on-year during Q2FY27 and 21% during the first half of FY27. Notably, Q2FY27 revenue accelerated from 18.5% YoY growth in Q1FY27 (₹5,666 crore), indicating sequential improvement in performance. The latest update comes as Trent continues to accelerate store expansion across its Westside and Zudio formats, with the company reporting ₹5,666 crore in standalone revenue for Q1 FY27, up 19% year-on-year. As per CNBC TV18, this multi-quarter high revenue growth of 23% is only the second instance in at least the last six quarters that topline growth has managed to cross 20%, getting closer to the 25% CAGR target management highlighted during FY2026 analyst meet.
The company achieved significant operational improvements alongside its strong financial performance. Uttam Kumar Srimal from Axis Direct noted that underlying operational efficiency also improved, as the drop in store-level revenue productivity narrowed significantly to 1.7% in Q2, down from a 5.6% contraction in Q1. This improvement in sales productivity was crucial, as analysts had previously flagged concerns about expansion coming at the expense of store productivity. The company achieved a significant milestone by crossing the 1,000-store milestone for Zudio during the quarter, taking its total portfolio to 1,342 stores as of September 30, 2026. Zudio had 982 stores at the end of June 2026, and the value-fashion chain expanded its presence to more than 300 cities by crossing the 1,000-store mark in September. During the quarter, Trent opened its 1,000th Zudio store, marking a key milestone for the fashion and lifestyle retailer. The company added 250 stores across its Westside and Zudio formats in fiscal 2026 and opened another 27 stores in the quarter ended September 30. As per the exchange filing, Trent opened 10 Westside stores and 17 Zudio stores on a net basis during Q2FY27. During the quarter, Trent added a net 10 Westside stores and 17 Zudio stores, taking the net additions in the first half of FY27 to 11 Westside outlets and 36 Zudio stores. Bernstein noted that Trent added 30 net stores in the quarter, including 17 Zudio and 10 Westside outlets.
