Trent delivered better-than-expected first quarter earnings for FY27, with net profit surging 25.8% to ₹532 crore compared to ₹423 crore in the same period last year. The company's revenue grew 18.5% to ₹5,666 crore versus ₹4,781 crore YoY, while EBITDA jumped 32.5% to ₹1,110 crore with margins expanding to 19.6% from 17.5% YoY. This strong performance has prompted most major brokerages to maintain their bullish ratings, with Motilal Oswal retaining its buy rating and target price of ₹3,775 based on 40x Sep'28E pre-IND AS EV/EBITDA for standalone operations. As per Nuvama Institutional Equities, the consistent margin surprise has cushioned the business from operational deleverage, with the company actively mitigating rising input costs through value-chain interventions and calibrated price adjustments.
Trent delivered robust margin expansion in its latest quarter, with standalone pre-IND AS EBITDA growing 36% YoY and reported PAT increasing 26% YoY. As reported by Motilal Oswal, the company's standalone gross margins expanded 150 basis points YoY while pre-IND AS EBITDA margins improved 195 basis points YoY. This margin improvement was likely driven by favorable format mix and better inventory health across the business. Multiple brokerages have applauded the margin performance, with Morgan Stanley maintaining its Overweight rating and target price of ₹3,406, while Macquarie retained its Outperform rating with a target price of ₹3,600, attributing the margin beat to a richer mix of higher-margin Westside sales. Nuvama has revised its target price to ₹3,591 from ₹3,219 earlier, maintaining a 'BUY' rating despite noting that at current market price, the stock trades at 72 times/58 times FY27E/28E EPS.
Trent is currently trading at ₹3,000.00 as of August 7, 2026, representing a 3.54% decline from its previous closing price of ₹3,110.00. The stock has traded in a range of ₹2,987.00 to ₹3,111.45 during recent sessions. The company's market capitalization stands at ₹159,969.66 crore as of August 7, 2026. According to latest market data, Trent has delivered 8.92% returns year-to-date and 3.60% gains in the last 5 days. The stock's TTM P/E ratio is 96.78, significantly higher than the sector average of 14.91. The 52-week high stands at ₹3,782.67 while the 52-week low is ₹2,184.07.
Revenue grew approximately 18.5% YoY, representing a slight moderation from the 20% YoY growth recorded in Q4FY26. According to Motilal Oswal's analysis, this growth was primarily driven by 33% YoY store additions, though it was partially offset by a 10% YoY decline in same-store sales growth (SPSF). The company's focus remains on gaining market share in micro-markets rather than driving comparable store-level growth. Management indicated that consumer demand remains stable, although discretionary spending is "measured rather than exuberant" during the current period. As per Nuvama, the company continues to prioritise cluster-level revenue growth and increasing its market share in key micro-markets over store-level like-for-like (LFL) growth, with the focus remaining on deepening penetration in Zudio while ramping up store additions in Westside.
The fashion segment showed mixed results with Fashion like-for-like (LFL) remaining in low single digits during the quarter. As reported by Motilal Oswal, this performance reflects the company's strategic focus on gaining market share in micro-markets over driving comparable store-level growth. Like-for-like growth in the fashion portfolio stayed in the low single digits, with expansion continuing to be skewed towards Tier II and Tier III markets, where newer stores typically take longer to mature. Management sounded cautious on near-term demand amid geopolitical uncertainty, with higher commodity prices potentially weighing on demand and disrupting the supply chain. Despite emerging raw material inflation and supply chain risks, MOFSL noted that management expects supply chain initiatives, supplier engagement, and calibrated pricing to help preserve margins going forward.
Despite the strong quarterly performance, analysts remain cautious about sustained revenue growth acceleration. Jefferies maintained a Hold rating but raised its target price to ₹3,435, while Citi retained its Sell rating with the lowest target of ₹2,950. The consensus target for Trent stands at ₹3,454, implying an 11.2% upside from current levels. Among foreign brokerages, Macquarie and Bernstein suggested 'Outperform' with targets of ₹3,600 and ₹3,500 respectively, while UBS recommended 'Buy' with a higher target of ₹3,800. The highest target on the stock stands at ₹4,455 by Antique Stock Broking. MOFSL suggested 'Buy' with a target of ₹3,775, noting that while valuations remain demanding at 62 times FY28 EPS, sustained execution on store expansion, driving market share gains with potential upside on margins, and the scaling of emerging categories keep them constructive.
