Trent Limited delivered impressive financial results for Q4 FY26, with consolidated net profit surging 32.57% YoY to ₹413.10 crore compared to ₹311.60 crore in the same period last year. According to latest reports, revenue from operations stood at ₹5,027.99 crore in Q4 FY26, up 19.23% from ₹4,216.94 crore in Q4 FY25. Operating EBITDA came in at ₹653 crore for the quarter and ₹2,702 crore for FY26, marking a growth of 44% YoY in Q4 and 25% for the full year. However, Trent shares fell over 1% on Thursday, April 23, declining as much as 1.2% to ₹4,381.30 on BSE despite the strong results. The decline came amid overall weak sentiment on Dalal Street due to rising crude oil prices and stalled peace talks between US and Iran, with Sensex opening 533 points lower at 77,983.66.
Trent announced its first-ever bonus issue in a 1:2 ratio, marking a historic milestone for the Tata Group company. As per The Economic Times, the company will issue one bonus share for every two shares owned as on the record date, subject to shareholder approval. The board also recommended a 600% dividend, or ₹6 per equity share of Re 1, subject to shareholder approval. Around 17.77 crore shares with a face value of Re 1 each will be issued as part of the bonus offer, with the company planning to allot bonus shares by June 21, utilising share premium worth ₹17.77 crore. The company's total share premium available for capitalisation stood at ₹1,924.3 crore as of March 31, 2026. This bonus issue, benefiting the company's over 5 lakh shareholders, is expected to boost liquidity and affordability for investors.
Trent shares have gained around 11% over the past week and 24% in the last month, following the bonus issue announcement, though they declined nearly 17% over the past one year. As reported by The Economic Times, the stock has rallied 219% in three years and over 490% in five years in the longer term. The stock closed at ₹4,409.90 on the NSE, reflecting a daily increase of 0.44%, with the company's market capitalization standing at approximately ₹1.57 lakh crore. The bonus issue, marking the first-ever by a Tata Group company, will benefit the company's over 5 lakh shareholders and is expected to improve liquidity and affordability, allowing more investors to add shares to their portfolio. The company also declared a ₹6 dividend alongside the bonus issue, with previous dividend payments of ₹5 per equity share in June last year, ₹3.20 in May 2024, and ₹2.20 in May 2023.
According to the company announcement, store expansion remained aggressive with 1,286 stores across 321 cities, including presence in three UAE cities. During Q4, the company opened 109 Zudio and 23 Westside stores, while for FY26 in total, 212 Zudio and 60 Westside stores were added, with the Zudio count reaching 963 and Westside at 300. The company's operating EBIT margin expanded to 11.5% in Q4FY26 from 9.7% in the same quarter last year, with return on capital employed for FY26 standing at over 29%. The company also announced an Employee Stock Option Plan (ESOP) to issue nearly 8.89 lakh shares to eligible employees.
Despite strong operational performance, Trent shares were trading down 2.53% at ₹4,322.10 on the NSE around noon on Friday, a day after the Tata Group retailer reported strong Q4FY26 results. The stock opened at ₹4,440, hit a high of ₹4,479.40 and slid to a low of ₹4,252 in early trade, with sell orders dominating at 66.59% of the order book against 33.41% on the buy side. Traded volume stood at 32.09 lakh shares worth ₹1,398 crore, already surpassing Thursday's full-day value, with the stock's market cap standing at approximately ₹1.54 lakh crore. The sell-off comes despite broadly positive reception from analysts, with Motilal Oswal retaining its Buy rating with a revised target of ₹5,250, citing strong margin expansion and robust store additions. Morgan Stanley maintained an Overweight stance with a ₹4,835 target, noting the Q4 margin beat and intact growth strategy, while HSBC kept a Buy rating at ₹4,830 flagging the 15% EBITDA beat against consensus. However, Citi remains the lone bear with a Sell rating at ₹4,100, questioning the sustainability of margin improvements due to inventory provisioning reversals.
