Trent Shares Slide 11% After Q1 Business Update; Revenue Growth Misses Street Expectations | Q1 FY2027 Earnings Watch

Trent Ltd, the Tata Group company behind Westside and Zudio, saw its shares fall as much as 10.7% in early trade on Tuesday after its June-quarter business update missed Street expectations despite reporting a 19% year-on-year increase in standalone revenue.

The stock touched an intraday low of ₹2,986 on the NSE after the company reported standalone revenue from operations (excluding GST) of ₹5,666 crore for the April-June quarter, up 19% from ₹4,781 crore in the corresponding period last year.

Revenue from the sale of merchandise, excluding other operating income, also grew 19% year-on-year. While the company maintained double-digit growth, the update failed to excite investors who were expecting a stronger start to the financial year.

Q1 business update at a glance

Store expansion continued during the quarter

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

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 one Westside store and 19 Zudio stores, reflecting its continued focus on scaling the Zudio format while expanding the reach of Westside.

Focus shifts to store productivity

Despite the continued expansion, the sharp fall in the stock suggests investors are looking beyond store additions and focusing more closely on the quality of growth.

The June-quarter business update offers only a snapshot of sales performance. The company's financial results, expected later this month, will provide more clarity on profitability, margins and demand trends.

Speaking at Trent's 74th Annual General Meeting last month, Chairman Noel Tata said the company has evolved into a "strong and resilient retail platform" with a clear focus on creating long-term value. Under his leadership, Trent expanded into 79 new cities during FY26, added 289 stores and served more than 120 million customers.

Kotak Securities Research, in its latest company update, said Trent's long-term growth continues to be supported by category expansion, wider geographic reach for Zudio and investments in supply chain infrastructure and RFID technology. Emerging categories contributed around 20% of standalone revenue in FY26, while Zudio added 198 net stores and entered 76 new cities during the year.

At the same time, KSL research highlighted lower standalone revenue per square foot and subdued growth in the Star business as key areas to watch. The brokerage retained its 'Reduce' rating on the stock with a revised fair value of ₹3,025, while revising its FY27-FY29 earnings per share estimates higher by around 2%.

What to watch in the Q1 results

When Trent announces its June-quarter results, the focus is likely to shift from revenue growth to earnings quality.

Management commentary on same-store sales growth, operating margins, consumer demand, revenue per square foot and the pace of expansion across Westside and Zudio will be closely tracked. Investors will also look for an update on the company's growth strategy for the rest of FY2027 and whether it remains on track to meet its store expansion plans.

Also Read - Kotak Neo Commodity Watch | Gold, Silver Ease Ahead of Fed Minutes; Oil Rebounds as OPEC+ Supply Outlook Caps Gains