Trent shares crash 11% after Q1 update; 19% revenue growth fails to impress. Here is why

Shares of Trent Ltd, the retail arm of the Tata Group, plunged around 10% in the early trade on Tuesday, July 7, af the company, on Monday, post-market hours, reported a 19% year-on-year (YoY) increase in standalone revenue for the June quarter (Q1FY27).

The stock declined as much as 10.7% to the low of ₹2,986 on the NSE.

Trent said standalone revenue from operations (excluding GST) stood at ₹5,666 crore in Q1 FY27, compared with ₹4,781 crore in the corresponding quarter last year.

Revenue from the sale of merchandise, excluding other operating income, also grew 19% YoY during the quarter.

Trent continued to expand its retail footprint during the quarter, taking its total store count to 1,312 as of June 30, 2026.

The portfolio comprises 301 Westside stores, 982 Zudio stores (including seven in the UAE), and 29 stores across other lifestyle concepts.

During the quarter, the company added a net 20 stores, including one Westside outlet and 19 Zudio stores, underscoring its continued focus on expanding its value fashion business.

Why is the stock under pressure?

Shares of Trent Ltd are under selling pressure as analysts believe the company's 19% year-on-year revenue growth fell short of market expectations, which were pegged in the low-to-mid twenties.

According to Citi, Trent reported standalone revenue growth of 19% YoY in Q1, compared with 20%, 16%, and 17% in Q4, Q3, and Q2, respectively, and below its estimate of 23%. The investment firm also noted that average revenue per square foot (assuming the same new-store size as the trailing twelve months) declined 12.2% YoY, compared with declines of 11.6% and 16.1% in Q4 and Q3, despite benefiting from a relatively weak base.

While Q1 is seasonally weak for store additions, with Westside and Zudio adding a net 1 and 19 stores, respectively, versus Citi's estimates of 0 and 6, the investment firm remains cautious due to the continued weakness in revenue per square foot, increasing competition, the impact of cannibalisation, and the company's expansion into Tier II and Tier III towns.

Analysts at Macquarie also note that the Q1 update shows weaker-than-expected sales growth. The investment firm said that it believes same-store sales growth momentum moderated from Q4 levels. Growth moderation is likely to weigh on near-term performance; it sees value positioning and an improving outlook on consumer demand aiding growth recovery.

Recent updates to know

Noel Tata in late June said Trent's 74th AGM will be his last as Chairman, concluding a historic tenure where he built the Tata retail firm from a single storefront in Bengaluru into a leading Indian fashion and lifestyle giant.

"As you might be aware, this will be my last Annual General Meeting as Chairman," Noel Tata (69) told shareholders while addressing the AGM of the company, which operates fast fashion retail stores such as Westside and Zudio.

Noel Tata, who is also Chairman of Tata Trusts, the largest shareholder of Tata Sons, will turn 70 in November this year.

The Companies Act 2013 mandates that any Managing Director or Whole-Time Director cannot be appointed or continue employment if they are 70 years of age or older.

However, as an exception, they can be appointed only with shareholder approval through a special resolution, or with central government approval if only an ordinary resolution is passed.

Thanking shareholders, employees and partners for their support over the years, Tata said the company has evolved into a strong and resilient retail platform with a clear focus on creating long-term value.

"I would like to sincerely thank all our shareholders, colleagues and partners for their confidence, trust and support over the years," he said.

Under his Chairmanship, Trent expanded into 79 new cities and added 289 stores, taking its overall portfolio to 1,286 stores across 321 cities, serving more than 120 million customers in FY26.

On a consolidated basis, its total revenue stood at ₹20,074 crore and profit before tax (before exceptional items) was ₹2,259 crore.

About Trent Ltd

Trent Ltd is the retail arm of the Tata Group and one of India's leading fashion and lifestyle retailers. The company operates a diversified portfolio of retail formats, including Westside, Zudio, Star Bazaar, and several other lifestyle concepts.

In recent years, Trent has emerged as one of the fastest-growing organised retailers in the country, driven by the rapid expansion of its value fashion brand Zudio and the steady growth of its flagship Westside chain.