What lies ahead for Trent after decent Q3 FY26 numbers? Check the company's expansion plans and stock's performance

Data show that the stock has fallen 23.45% over the past six months (as of the February 13 close on the NSE).

However, its December quarter (Q3 FY26) performance showed recovery.

The company reported a 2.73% increase in consolidated net profit at ₹510.11 crore for the December quarter of FY26.

The company had logged a net profit of ₹496.54 crore in the October-December period a year ago, according to a regulatory filing from Trent Ltd, which operates retail stores under brand names Westside, Zudio, and Star.

Revenue from operations was up 14.78% to ₹5,345.06 crore in the December quarter from ₹4,656.56 crore logged a year ago, it added.

"The gross margin profile of Westside and Zudio remains stable. Operating EBIT margin for Q3FY26 was 13.8% (13.2% for Q3FY25)," it said.

Trent has reported an exceptional item (net loss) totalling ₹26.11 crore in the December quarter. This is on account of the implementation of the new labour codes.

What the Chairman said

Commenting on the results, Trent's chairman, Noel N Tata, said the fashion business registered category-leading growth during the quarter.

"The customer sentiment is gradually improving, and our business outlook for the medium term continues to remain positive. Our focus continues to be on portfolio growth, elevating products and enhancing store experience for our customers," Noel Tata said.

Trent has consistently delivered a differentiated consumer proposition that appeals to a wider audience across diverse markets, the company said.

What lies ahead?

P.Venkatesalu, Trent's managing director, told reporters at the sidelines of the Retail Leadership Summit 2026 in Mumbai on Monday, February 16, that the company is eyeing further expansion into tier 3 and tier 4 cities amid a macro market which is expected to be far more attractive in the coming years, a top company executive said on Monday, February 16.

The company's executive also said that urban demand seems to be coming back gradually post-GST 2.0 reforms, but ruled out small-ticket discretionary benefits in the long term due to the changeover.

"We are opening a lot more in tier-3 and tier-4 cities now, as opposed to what we used to do in the past. What we are seeing is, very clearly, the young customer in those markets is super clued in to what trends are playing out," the MD added.

The MD said that customers in these smaller cities and towns don't have the same level of maturity as the metro markets at present, but it may change over a period of the next 2-3 years.

"We do bet in a very significant way that the customer will be more interesting," he said.

The macro markets will be far more attractive in the years ahead, Venkatesalu said, adding, "But that's the same approach that we took to metros. If you went back five years, in terms of densification, in terms of opening far more presence in individual micro-markets. So, we are doing the same thing, broadly speaking, in tier-3 and tier-4 markets now," he stated.

"A substantial portion now, maybe about two-thirds of our stores that we are increasingly opening, is in new towns, new cities, and new micro-markets within the periphery of cities. So, clearly, new micro-markets are a focus area for us," Venkatesalu said.

According to him, post the GST implementation shift over post September 21, there was a certain period when there was a prioritisation of the customer for big-ticket electronics, travel, and others.

"But that said, over the medium term, we do think small-ticket discretionary will also benefit from the changeover," he said.

"As of today," he said, "the initial blip that came through was from a focus on high-ticket categories such as electronics and auto, which had significant GST drops. I do think there was a bit of focus from the customers on that, which took away focus from small-ticket discretionary," he said.

Having said that, the direction of GST is completely in the interest of consumers, the changes that have happened, and I do see that helping consumption gradually improve in the months and quarters ahead, the MD added.