Trent Q2 Preview: Store Expansion To Drive Up To 21% Growth

Tata Group’s Trent is set to announce its Q2 earnings on 7 Nov 2025, with brokerages expecting the retailer to deliver another strong year-on-year performance. Analysts tracking the company indicate that revenue could rise 17–21% YoY, supported by aggressive store additions across Zudio and Westside, steady margins, and resilient demand trends.

Trent has already disclosed in its quarterly update that standalone revenue grew 17% YoY to ₹5,002 crore in Q2 FY26, reinforcing expectations of continued growth momentum.

What Brokerages Expect On Trent’s Q2 Financials

According to estimates from Kotak Institutional Equities, Nuvama Institutional Equities, Axis Securities, and Elara Capital, Trent’s topline for Q2 FY26 is expected in the ₹4,722–5,016 crore range, representing 17–21% YoY growth.

Profit expectations vary widely — analysts forecast 3% to 33% YoY PAT growth, reflecting differences in assumptions around operating leverage, depreciation and other income.

Here’s how the brokerages see Q2 for Trent:

1. Profit After Tax (PAT)

• Kotak Equities expects PAT of ₹480 crore, helped by the large increase in store space.
  
• Nuvama thinks PAT may come in at ₹452 crore, showing steady 7% growth from last year and last quarter.
  
• Elara Capital is the most positive, estimating ₹441 crore, which would be a strong 31.7% rise YoY.
  
• Axis Securities forecasts ₹437 crore, a small improvement both YoY and QoQ.
  
• Kotak also mentions that profit before tax might grow more slowly because of lower income from the Inditex JV and higher depreciation expenses.
  

2. Revenue Outlook

• Kotak Equities expects revenue of ₹4,828 crore, supported by new Zudio Westside stores, though it warns that overlapping stores may limit revenue gains despite 37% YoY area growth.
  
• Nuvama sees revenue at ₹4,725 crore, up 17% YoY, but a little lower than last quarter.
  
• Elara is again the most upbeat, expecting ₹5,016 crore, a 20.7% YoY increase.
  
• Axis estimates ₹4,722 crore, also at around 17% YoY growth.
  

3. EBITDA Expectations

• Kotak Equities estimates ₹844 crore, a strong 31.8% rise YoY.
  
• Nuvama and Axis both expect ₹778 crore, up around 21% YoY, but down around 7% from the previous quarter.
  
• Elara expects ₹815 crore, showing good YoY growth but a slight QoQ dip.
  

4. Margins

• Kotak Equities expects EBITDA margin at 17.5%, higher than last year.
  
• Elara and Axis think margins may settle near 16.5%, slightly better YoY.
  
• Nuvama expects gross margins to soften to 43.4% from 44.2% last year because Zudio, a lower-margin format, is growing faster.

Trent’s Q2 Store Growth And Portfolio Highlights

A key driver for Trent this quarter remains rapid store additions, especially in the high-velocity Zudio format. Brokerages highlight that the company’s aggressive expansion strategy remains intact, helping offset any demand variability or softness in per-sq-ft revenue.

As per the company’s filing for Q2 update:

1. Store Portfolio as of 30 September 2025

• 261 Westside stores
• 806 Zudio stores (including 3 in UAE)
• 34 stores across other lifestyle concepts

2. Net Additions During Q2 FY26

• Westside: +13 stores
• Zudio: +40 stores

This expansion supports the 17% YoY revenue growth Trent reported for the quarter, and a 19% YoY revenue rise for ₹10,063 crore in H1 FY26 vs ₹8,488 crore in H1 FY25.

Key Factors To Watch Out For Q2 Results

Ahead of Trent’s results, analysts indicate a few key monitorables:

• Demand Trends: Management commentary on metro versus Tier-II/III consumption will be closely tracked. With new Zudio stores operational and Westside maintaining a strong metro presence, analysts are watching for signs of festive pickup and stability in non-metro discretionary spending.

• Same-Store Sales Growth (SSSG): While brokerages haven’t shared explicit SSSG estimates, industry trends point to moderated discretionary demand. Any steady mid-single-digit SSSG for Westside or early traction across newer Zudio clusters would be viewed constructively.

• Cannibalisation Risk: Analysts note that area growth of 37% YoY may outpace revenue growth due to store overlaps in dense markets. Commentary on older-store productivity and revenue per sq ft will be key.

• Cost Controls: RFID-led efficiencies and scale benefits have supported margins so far. With EBITDA margins estimated at 16.5–17.5%, analysts will assess whether cost savings can offset the impact of a rising Zudio mix.

Conclusion

Overall, estimates indicate another strong quarter for Trent, supported by rapid Zudio and Westside stores expansion, stable margins, and resilient demand. While a higher value-format mix and festive seasonality may soften sequential performance, analysts expect operating leverage and cost efficiencies to keep growth steady.

With store additions accelerating and revenue momentum intact, the focus now shifts to consumption trends, SSSG, and margin stability. The real question is whether Trent can maintain this trajectory as competition intensifies and discretionary demand evolves.

References

Economic Times
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