Trent reported a 2.73% year-on-year increase in consolidated net profit to ₹510.11 crore for Q3 FY26, compared to ₹497 crore in the year-ago period. According to The Economic Times, the company's revenue from operations surged 14.78% to ₹5,345.06 crore during the December quarter. The profit after tax is attributable to the owners of the company. The reported profit also absorbed a one-time ₹26.11 crore loss related to new labor code implementations, highlighting the impact of regulatory changes on operational costs. However, the company's EBITDA rose significantly by 27.6% to ₹1,081.7 crore, exceeding analyst expectations and expanding margins to 20.2%, demonstrating strong operational efficiency gains.
The primary driver of Trent's revenue expansion was its aggressive physical store rollout strategy. The company added 65 new outlets during the quarter, predominantly Zudio locations, increasing its total store count to over 1,100 stores. As reported by The Economic Times, this expansion strategy was the primary engine for the revenue growth, demonstrating the company's focus on physical footprint expansion over organic sales growth at existing locations. The operating EBIT margin improved to 13.8% from 13.2% year-on-year, indicating operational efficiency gains despite the one-time labor charge impact.
Brokerage sentiment on Trent remains divided with divergent views on the company's prospects. According to The Economic Times, Bernstein maintains an 'Outperform' rating with a target of ₹5,000, emphasizing store additions as the primary growth driver. HSBC reiterates a 'Buy' with a ₹5,300 target, anticipating margin improvements from efficiencies by FY27. However, Kotak retains a 'Reduce' rating and a fair value of ₹3,850, citing persistent SSSG pressure due to subdued demand and rising costs. Motilal Oswal reiterates a 'Buy' with an unchanged target of ₹5,200, citing medium-term optimism driven by cost discipline and expansion. The company currently holds a market capitalization exceeding ₹1.37 trillion with a trailing twelve-month P/E ratio ranging between 81x and 92x. Despite strong operational performance, the P/E ratio remains exceptionally high at approximately 78.9x, reflecting investor concerns about valuation levels.
Infosys, TCS, HCL Tech, and Wipro shares are expected to remain in focus on Thursday following a steep decline the previous day. According to reports from The Economic Times, the IT companies faced significant pressure after the release of new tools by AI company Anthropic. The new plug-ins threaten to upend traditional software business models, which Indian IT companies heavily rely on for their revenues through outsourcing services. Technology stocks are expected to remain under pressure following recent sell-offs driven by anxieties over rapid advancements in artificial intelligence, with fears that new AI tools could disrupt established software business models, impact pricing power, and fundamentally alter future earnings projections.
Chairman Noel N Tata expressed optimism regarding gradual improvement in customer sentiment and a positive medium-term outlook, focusing on portfolio expansion and customer experience. However, the sustained investor focus on SSSG pressure, coupled with elevated valuations, suggests that future performance will depend heavily on the company's ability to translate its extensive store network into comparable sales growth. The Indian apparel retail sector faces complex headwinds with value fashion and grocery segments showing resilience while discretionary spending faces challenges. Historically, Trent's stock has reacted negatively to mixed results, with an 8.3% drop observed on January 6, 2026, despite revenue increases, indicating investor wariness regarding the sustainability of its growth model.