Trent shares gain post Q3 results; brokerages mixed on outlook, check targets

Shares of Trent Ltd climbed 1.62 per cent on Wednesday to Rs 4,077.50, bucking the broader market weakness. The benchmark Sensex was down nearly 400 points during the session, reflecting cautious investor sentiment.

The stock opened at Rs 3,973.40 and hit an intraday high of Rs 4,094, before slipping to a low of Rs 3,863. Trent’s market capitalisation stood at about Rs 1.45 lakh crore. The stock is trading above its 52-week low of Rs 3,645 but remains well below its 52-week high of Rs 6,261.

Q3 profit rises 36% on strong execution

Add Zee Business as a Preferred Source

Trent reported a 36 per cent year-on-year rise in standalone net profit at Rs 640 crore for the December quarter, compared with Rs 469 crore in the year-ago period. The reported profit was impacted by a one-time charge of Rs 26.11 crore related to the implementation of new labour laws.

Revenue from operations grew 16 per cent to Rs 5,259 crore from Rs 4,535 crore last year. The company said consumer spending improved during the quarter, helped by lower GST rates, which supported discretionary demand.

Management sees improving demand outlook

Chairman Noel N Tata said Trent’s fashion business delivered category-leading growth despite a higher base. He said customer sentiment is gradually improving and the medium-term business outlook remains positive.

The company continues to focus on building a large direct-to-consumer business across segments. In the Star business, the contribution of in-house brands has increased to more than 74 per cent of revenues.

Store expansion continues, pace to improve

During the December quarter, Trent opened 17 Westside stores and 48 Zudio stores, including one Zudio outlet in the UAE. Store expansion was slower than expected, but the company said efforts are underway to accelerate rollouts in the coming quarters.

As of December 31, 2025, Trent operated 278 Westside stores and 854 Zudio stores, including four in the UAE. The total retail footprint stood at over 15 million square feet.

Brokerages stay divided on the stock

Brokerage views on Trent remained mixed after the results.

Jefferies maintained a Hold rating and cut its target price to Rs 4,575 from Rs 4,600, citing muted revenue growth and limited near-term visibility. Morgan Stanley retained an Overweight rating but lowered its target to Rs 4,963 from Rs 5,456.

Citi maintained a Sell rating with a target of Rs 4,350. It flagged concerns over the quality of the earnings beat and warned that margin gains may not be sustainable over the medium term.