Trent Q4 results: Revenue could see double-digit growth; key focus on bonus issue and final dividend

Trent, the parent company of Zudio and Westside, will announce its March quarter (Q4FY26) results on Wednesday, April 22. The company is expected to report upbeat quarterly earnings with double-digit growth in revenue and a modest rise in net profit. Investors' focus will be on the first-ever bonus announcement and final dividend.

During its Q4 business update, the Tata-Group company reported standalone revenue growth of 20% YoY to ₹4,937 crore, while the total store count was at 1,286 (300 Westside, 963 Zudio and 23 stores across other lifestyle concepts). During the quarter, the company opened 109 Zudio and 22 Westside stores.

According to experts, the Tata Group-owned company could report standalone revenue growth of 16 to 20% YoY to ₹4,790 to ₹4,950 crore. The company registered revenue of ₹4,106 crore in Q4FY25, while it stood at ₹5,259 crore in the previous quarter.

Meanwhile, Trent’s net profit could rise by 8% to 12% YoY to ₹380 to ₹385 crore but could decline on a quarterly basis. The company’s net profit was ₹350 crore in the March quarter of FY25 and ₹640 crore in the previous quarter.

Investors will look forward to key performance metrics like same-store sales growth, EBITDA margins and management commentary on future growth estimates and overall demand outlook. Investors will also look forward to the issuance of bonus shares and the dividend announcement.

Ahead of the Q4 result announcement, Trent shares closed 3.4% higher at ₹4,390 on April 21. Trent stock has shown a smart recovery in April month rising over 33% after the Q4 business update and bonus share announcement.

Technical outlook

Trent has witnessed a sharp reversal from the ₹3,300–₹3,400 zone, forming a strong V-shaped recovery and reclaiming both the 20 and 50 EMA, signalling a clear shift in short-term momentum.

The stock is now approaching a critical resistance near ₹4,450, which also aligns with the falling 200 EMA, a key resistance zone. A decisive breakout and close above this level could trigger further upside.

However, RSI is above 70, indicating overbought conditions in the near term, which raises the possibility of some consolidation or pullback. Immediate support is placed around ₹3,720, and as long as the stock holds above this level, the bullish bias remains intact.

Options outlook

As of 21 April, the price of Trent’s at-the-money straddle for the 28 April expiry indicates a potential price movement of around ±5.3%. This suggests that the options market was anticipating increased volatility around the earnings event.

However, before deploying strategies to take advantage of this expected movement, it is useful to consider how the stock has historically reacted during previous earnings cycles.

Options strategy for Trent

With the options market pricing in a potential move of around ±5.3% in Trent ahead of the 28 April expiry, volatility-based strategies come into focus.

Traders expecting a sharp move can consider a long straddle, which involves buying both an at-the-money call and put. This strategy benefits if the stock breaks decisively beyond the implied range in either direction.

On the other hand, if the view is that Trent may stay rangebound, a short straddle could be considered. Here, both the ATM call and put are sold to capture premium, with profits accruing if the stock remains within the ±5.3% band. However, this strategy carries significant risk if the stock makes a strong directional move.

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop losses. The information is only for educational purposes. We do not recommend any particular stock, securities or strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.