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  1. Trent shares drop 4% after Q2 business update; here is why. Check experts' views and other retail firms' updates

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Trent shares drop 4% after Q2 business update; here is why. Check experts' views and other retail firms' updates

Upstox

5 min read | Updated on October 07, 2025, 09:32 IST

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SUMMARY

Trent Q2: The company said that standalone revenue from the sale of products during the September quarter increased 17% YoY to ₹5,002 crore, while in the first half of FY26, the company saw an increase of 19% YoY.

Trent share price, Oct 7

As of September 30, 2025, Trent said its store portfolio included 261 Westside, 806 Zudio (including 3 in the UAE), and 34 stores across other lifestyle concepts. | Image: Shutterstock

Trent share price: Several companies across sectors have released their business updates for the September quarter of FY26 (Q2 FY26). The overall numbers have been largely good, indicating that India Inc.'s Q2 earnings could see broader-based growth this time around.
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Here is a look at how companies from the retail sector operating in different segments have performed in the just-concluded September quarter.

Trent Ltd

On Monday, October 6, the Tata Group company shared its update for Q2 FY26 and H1 FY26.

It said that standalone revenue from the sale of products during the September quarter increased 17% YoY to ₹5,002 crore, while in the first half of FY26, the company saw an increase of 19% YoY.

As of September 30, 2025, Trent said its store portfolio included 261 Westside, 806 Zudio (including 3 in the UAE), and 34 stores across other lifestyle concepts.

StoresWestsideZudio
Q2FY26H1FY26Q2FY26H1FY25
Opened (net)13134041
Source: Exchange filing

Trent, a part of the Tata Group, is a leading retail company, operating various retail formats, including the flagship department store Westside and value fashion brand Zudio. Established in 1998 from a former cosmetics business, Trent focuses on designing and delivering fashion, home, and grocery products through online and physical stores across India. The company also partners with international brands like Zara and operates the hypermarket chain Star Bazaar.

Shares of the company in the early trade on Tuesday, October 7, declined as much as 3.9% to ₹4590 apiece on the NSE.

What leading investment firms say

Goldman Sachs

According to news reports, analysts at Goldman Sachs attribute the slowdown in Trent’s sales growth partly to lower sales throughput from newer stores in Tier 2+ cities. As a result, the firm has cut its FY26–28 EPS estimates by 5%, primarily due to reduced sales growth expectations.

UBS

UBS noted that Q2 FY26 revenue growth of 17% YoY marks a continued weakening trend, following a modest 20% growth in Q1 FY26. This deceleration, which began in Q4 FY25, has also been reflected in the stock’s performance. UBS characterised this as a cyclically weak phase for the high-growth company but added that a rebound in growth could act as a key catalyst going forward.

Nykaa

In its press release, Nykaa (FSN E-Commerce Ventures Limited, along with its subsidiaries) said it has seen an accelerated growth momentum in Q2 FY2026, with consolidated GMV growth expected to be close to thirty, compared to the mid-twenties in the last few quarters. "This superior performance is driven by renewed growth in the fashion vertical and healthy performance of the beauty vertical," it added.

Nykaa’s Beauty vertical is expected to deliver NSV and net revenue growth in the mid-twenties, marking 10+ consecutive quarters of sustained growth momentum. House of Nykaa brands continue to witness rapid growth driven by the robust performance of acquired brands like Dot & Key, as well as homegrown brands like Kay Beauty and Nykaa Cosmetics, the company said in its update.

NSV stands for Net Sales Value.

Nykaa’s Fashion vertical is expected to deliver NSV growth in the higher mid-twenties, on the back of strong traction in the core platform business, which was led by expanding brand assortment and robust customer acquisition. The vertical’s net revenue growth is expected to improve to the low twenties from the low to mid-teens in the last few quarters. Net revenue growth for the vertical is lower than NSV growth due to a lag in advertising and marketing income.

"As a result, Nykaa has delivered yet another quarter of healthy performance with Consolidated Net Revenue growth expected to be in the mid-twenties in Q2 FY2026, aided by an early start to the festive season," Nykaa said.

The recent GST reforms announced by the government are a welcome step toward stimulating demand.

These reforms are expected to increase disposable income and drive long-term growth across several consumer and discretionary categories, the company added.

Avenue Supermarts (DMart)

The company said its standalone revenue from operations for the quarter ended (QE) September 30, 2025, stood at ₹16,218.79 crore. It was ₹14,050.32 crore in the year-ago period. This translates to a growth of 15.4% YoY.

The total number of stores as of September 30, 2025, stood at 432 (including one store at Sanpada, Navi Mumbai, Maharashtra, currently closed for customers due to reconstruction).

Avenue Supermarts Limited (ASL) owns and operates supermarkets across India under the brand name DMart. Radhakishan Damani founded the company in 2002, opening its first store in Powai, Mumbai. It is one of the largest entities in the retail sector. Apart from DMart, the company also owns brands such as D Mart Minimax, D Mart Premia, D Homes, and Dutch Harbour.

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