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Trent Share Price: Trent shares in focus after 3% increase in PAT and 15% jump in revenue.
Considering the performance of the company, different brokerage houses have adopted a cautious approach. Leading brokerages Nuwama and Citi have prepared a report, in which Citi has maintained its SELL rating, while Nuwama has given the opinion of ‘HOLD’.
Trent Share Price- Citi Report
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Citi has given a target price of Rs 4,350 while maintaining ‘Sell’ rating on the stock. According to the brokerage, the company’s revenue was in line with estimates, while EBITDA and adjusted PAT outperformed expectations. EBITDA margin did expand due to improvement in gross margin, but the quality of earnings was considered weak due to PAT being supported by other income.
Additionally, margin sustainability remains at risk due to rental and employee cost pressures, while the Zudio segment is witnessing subdued growth due to slowing store additions.
Trent Share Price- Nuvama Report
At the same time, Nuvama has also maintained ‘Hold’ rating while keeping a cautious stance on Trent and reduced the target price to Rs 4,543. According to the brokerage, Q3FY26 saw a sharp decline in revenue growth on an annual basis. However, operating EBITDA margin improved due to improvement in gross margin and lower employee cost growth.
Trent has reported a 3 per cent year-on-year rise in Conso net profit for the December quarter, with profit attributable to owners at Rs 513 crore compared to Rs 497 crore in the same period last year, the company said in an exchange filing. Although profit growth was modest, topline momentum remained strong, reflecting continued demand across its fashion formats.
Revenue from operations rose 15 per cent year-on-year to Rs 5,345 crore in Q3FY26 from Rs 4,657 crore a year ago. This was supported by rapid store expansion and stable margins. On a standalone basis, the performance was even more impressive.
Profit after tax grew 36 per cent year-on-year to Rs 640 crore compared to Rs 469 crore in the same period last year, and the bottom line also grew 42 per cent over the previous quarter. Standalone revenue grew 16 per cent year-on-year to Rs 5,259 crore, reflecting strong performance in the core business. Overall, the company now operates more than 1,100 mega fashion stores in 274 cities with a total retail area of more than 15 million square feet.
Shares of Trent rose nearly 5 per cent on Wednesday and closed at Rs 4,012.60 on the NSE, reflecting investor confidence after the results. However, by 9.40 am on Thursday, its price had fallen to Rs 3978.55 per share.
(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.)
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