Trent shares fall over 4% despite strong Q4 results; Here’s what analysts said

The fall in the stock comes amid a broad-based sell-off in the market, as confusion in the Strait of Hormuz sent crude oil prices surging. Furthermore, a weak rupee also impacted investor sentiment.

Furthermore, the firm remained cautious in the near-term owing to the potential impact on the disruption in the Middle East.

At around 11:37 AM, the scrip was trading 3% higher at ₹4,301.40 per equity share.

The share has jumped 5% in the past week and 28% over the month. On a year-to-date basis, it was flat with a negative bias.

While the stock touched a 52-week high of ₹6,261 on June 30, 2025, it touched a year’s low of ₹3,275.50 per unit on March 30, 2026.

Q4 Results

It posted 32.57% YoY surge in its consolidated net profit to ₹413.1 crore in Q4 FY26, compared to ₹311.6 crore in the corresponding period last year, according to a regulatory filing dated April 22.

The company’s revenue from operations stood at ₹5,027.99 crore during the quarter under review, marking a 19.23% YoY jump from ₹4,216.94 crore in the March quarter of FY25.

At an operational level, its EBITDA (earnings before interest, tax, depreciation, and amortisation) climbed 44% YoY to ₹5,028 crore for the January-March quarter of FY26.

Its operating EBIT margin for Q4 FY26 stood at 11.5%, compared with 9.7% in the March FY25 quarter.

“Consumer sentiment was relatively stable at the beginning of Q4. The impact of the unfolding geopolitical situation is still playing out. Consumers are spending with caution, resulting in moderation of discretionary spending on the back of continuing macro uncertainties and potential increase in cost of living,” Trent said in a press release.

Structurally, the demand levels and the underlying market opportunities remain strong. However, the duration and intensity of disruptions in the Middle East, along with their second-order effects on supply chains, commodity prices, and inflation in general, have potential implications for near-term demand, the firm added.

Corporate announcements

Trent’s board of directors recommended a final dividend of ₹6 per equity share, with a face value of ₹1 each, at a rate of 600%.

“The Dividend, if approved by the Shareholders of the Company, shall be paid on or after the third day from the conclusion of the 74th Annual General Meeting (AGM),” the filing read.

Its board also approved the issuance of bonus shares in the proportion of 1:2, i.e., one bonus equity share of ₹1 each for every two fully paid-up equity shares of ₹1 each held by the Shareholders of the company as on the record date (which will be informed later), subject to approval of the shareholders.

What analysts said

In a note, analysts at Citi said that Trent beat its revenue, EBITDA, and profit estimates, with EBITDA growth primarily driven by gross margin. The gross margin likely benefited from inventory provisioning reversal.

Bernstein analysts noted that the company was back on track as it beat growth and margin estimates. However, rights issues didn't excite. In the medium term, analysts expect Trent to maintain a 30% growth trajectory with a stable 11% operating margin. In the near term, it noted that macro conditions could be potential headwinds, which could impact input cost inflation, supply disruption, and cause demand uncertainty.

Furthermore, analysts at HSBC said that while EBITDA growth beat estimates, like-for-like (LFL) was in the low single digits for a fashion concept. The company’s ₹25 billion fundraiser requires granularity, while the Star business expansion is monitarable. Its store productivity had a larger-than-expected negative impact, especially from competition, which could drive further multiple compression.

In an analyst's note, Jefferis said that the strong growth in the March quarter was driven by store expansion, especially Zudio, and an improving LFL. However, the management commentary seemed cautious in near-term demand due to geopolitical uncertainty, which may also feed into higher costs. Additionally, it has continued to remain focused on densifying key markets and expanding further into smaller cities.

The analysts at Morgan Stanley noted that while consumer sentiment remained stable, discretionary spending moderated owing to macroeconomic uncertainties. Furthermore, Trent’s management saw early raw material inflation and supplier labour tightness, which was mitigated through a calibrated sourcing strategy that remains intact to drive the share of revenues in proximate markets.

Trent has a total market capitalisation of ₹1.53 lakh crore as of April 23, 2026, according to data on the NSE.