Trent Shares Gain Over 4.5% Despite Dull Q4 Performance

The retail arm of the Tata Group, is trading 4.95% higher at ₹5,366 as of 11:15 AM IST. The stock is experiencing fresh buying interest in recent volatility after its fourth-quarter results.

Q4 FY25 Highlights

The company posted a 55% fall in consolidated net profit on a year-on-year basis at ₹318 crore for Q4 FY25. Revenue increased, however, 28% to ₹4,217 crore. Sequentially, net profit fell 36%.

Margin Pressures and Expansion Impact

Trent’s profitability came under pressure due to aggressive expansion of its value-focused Zudio format, muted same-store sales growth (SSSG), and intensified discounting. The growing share of the lower-margin Zudio business weighed on operating margins, despite a robust store addition pace. Investors are closely tracking how Trent manages rapid scale-up, particularly of Zudio, while maintaining margins and SSSG. The competitive landscape is also heating up as major retail players re-enter or expand their fast-fashion offerings in India.

Share Price Performance and Market Outlook

Trent has experienced a sharp correction, down more than 23.3% year-to-date (as of February 10) and 31.48% in the last half year (as of March 10). It was one of the most affected stocks by market capitalization loss in the first quarter of 2025. Although stronger-than-expected revenue initially drove a nearly 5% rise in Trent's share price after the April 29 announcement, the stock later fell 4% as investor concerns grew over slowing like-for-like growth and weakness in the 'Star' segment. It went on to be among the notable laggards on the Nifty in the following sessions.

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