Trent Limited's stock has experienced significant volatility, declining 45% from its peak of ₹5,500 at the end of 2024. According to latest market data, as of August 21, 2026, the stock is trading at ₹2,924, down ₹46 from the previous closing. The stock's recent PE multiple stands at 76.20, while the P/B ratio is 144.45. The forward PE multiple now below 70 when considering potential PAT growth of 25-30% for FY27. The stock has achieved a return of -18.3% over the past year, though it showed a 1.5% return in the last month alone.
Despite the stock decline, Trent delivered impressive financial results in the recent quarter. As reported by The Financial Express, the company achieved consolidated revenue of ₹5,755 crore, representing 17.84% YoY growth. The operating EBITDA rose 33% YoY to ₹848 crore while operating EBIT increased 29% YoY to ₹732 crore. The profit after tax reached ₹532 crore with a PAT margin of 9.24%, compared to only ₹103 crore with 6.2% margin in Q1 FY23. Over the past four years, PAT margins have expanded by 304 basis points.
Trent's Zudio segment has demonstrated exceptional growth momentum, with the store count reaching 982 stores in the recent quarter, representing a 216 store increase year-on-year. According to The Financial Express, this compares to only 243 stores in Q1 FY23, meaning Zudio is currently adding net new stores in a single year equal to its total store count four years ago. The company projects Zudio's store count could reach 2,000 by 2030, potentially surpassing global leader Zara's current 1,500 stores globally. The company has added 289 new stores in FY26, taking the total count to 1,286 stores.
The competitive dynamics show a stark contrast between Trent and its rival Aditya Birla Fashion and Retail Limited (ABFRL). As reported by The Financial Express, while Trent achieved 17.8% YoY revenue growth and positive PAT margins, ABFRL reported 10.6% revenue growth but faced challenges with EBITDA margin declining from 9.3% to 8.2% and a negative PAT margin of -12.2%. ABFRL also reported a decline in its key Pantaloons segment to 399 stores from 405 stores in Q1 FY26, while Trent maintains its aggressive expansion in Tier-2 and Tier-3 cities.
Despite the stock's correction, Trent's fundamentals remain strong with significant growth runway ahead. According to The Financial Express, the company's EV/EBITDA ratio of 39.58 commands a premium over ABFRL's 12.89, supported by faster EBITDA growth and better return ratios. The company's ROCE of 28.34% and ROE of 27.74% significantly outperform ABFRL's negative metrics. With strong margin expansion potential, continued store expansion, and market leadership in underpenetrated segments, Trent appears well-positioned for future growth despite current valuation concerns.
