Trent Q4FY26 Result Preview: Revenue seen up 20%; bonus issue, margins in focus

Trent Q4FY26 Results: Shares of Trent Ltd are likely to remain in focus on April 22 as the company prepares to announce its Q4FY26 results, with expectations of steady growth but some pressure on margins, according to estimates by Zee Business Research Team.

Stock gains momentum ahead of key announcements

The stock has seen a sharp run-up ahead of the results. On April 21, it was trading at Rs 4,417.70, up Rs 174.90 or 4.12 per cent during the day. Over the past month, it has surged 31.61 per cent. However, the trend remains mixed over a longer period — the stock is down 7.79 per cent over six months and 17.58 per cent over the past year, while it has gained 2.80 per cent so far this year.

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Board to consider bonus issue, dividend and results

Apart from earnings, the company’s board is set to meet on April 22, 2026, to consider its maiden bonus share issuance. The board will also review audited results for the fourth quarter as well as the full financial year ended March 31, 2026.

In addition, discussions will include a final dividend for FY26, in line with the company’s track record of rewarding shareholders. The board is also expected to evaluate plans to raise capital through equity or other instruments as part of its growth strategy.

Market participants believe a potential bonus issue could improve liquidity in the stock and make it more accessible, especially given its relatively high trading price.

Growth expected to stay strong

Revenue is estimated at around Rs 4,937 crore for the quarter, up 20.2 per cent from Rs 4,106 crore a year ago, supported by store additions and demand from Tier 2 cities. Profit after tax is expected to come in at about Rs 395 crore, marking a 12.9 per cent increase year-on-year. EBITDA is likely to rise 15 per cent to Rs 755 crore.

Margins may remain under pressure

Despite strong revenue growth, margins could see some softening. EBITDA margin is estimated at 15.3 per cent, down from 16 per cent a year ago, due to higher operating costs and ESOP-related expenses.

Expansion remains central to strategy

Store expansion continues to drive growth. During the quarter, the company added 109 Zudio stores and 22 Westside outlets, expanding its footprint across markets, particularly in Tier 2 cities.

The company operates popular retail formats such as Zudio, Westside and Star Bazaar, and has emerged as a strong player in the value fashion segment. Zudio, in particular, has been a key growth engine and a major factor behind the stock’s strong performance in recent years.

Demand steady, but productivity may dip

Same-store sales growth is expected to remain largely flat, with a slight positive bias, pointing to stable demand conditions. However, revenue per square foot is estimated to decline by about 11 per cent, indicating some moderation in store-level productivity.

What investors will watch

With multiple triggers lined up — including earnings, a possible bonus issue, dividend announcement and fundraising plans — April 22 is expected to be a crucial day for the stock. Investors will keep a close eye on management commentary, particularly around margins, expansion plans and demand outlook.