Trent Q3 business update by Money control
Trent released its business update for the October-December quarter of FY26 in the post market hours of January 5. The company reported standalone revenue from sale of products at Rs.5,220 crore during the quarter. This marks a 17 percent year-on-year (YoY) rise from the Rs.4,466 crore reported in the same period of the previous financial year.
Notably, the Zudio and Westside-parent’s revenue from operations had risen more than 17 percent YoY to Rs.4,724 crore during Q2 FY26, same as the revenue growth reported in Q3.
Market underperformance: For the year, the stock has been under pressure and slipped sharply compared with broader indices.
Motilal Oswal on Trent:
Motilal Oswal Financial Services noted that the revenue growth reported by Trent is lower than the 20 percent revenue growth estimated by the brokerage. It however noted that the revenue growth remained steady at 17 percent YoY after several quarters of revenue growth deceleration.
Revenue growth is primarily driven by an approximately 28 percent YoY increase in store count, with revenue per store declining around 11 percent YoY, indicating continued cannibalization in store-level sale, it added.
“Trent’s stock price had run up in the last few days (up ~9% since 19th Dec’25) on expectations of a pick-up in revenue growth. A weaker-than-expected number could weigh on the recent stock price recovery as earnings downgrades are likely to continue in the near term,” Motilal said, while keeping a ‘Buy’ call on the stock.
Why the Stock Fell Despite Growth
Q3FY26 report reaction: Trent did report 17% year-on-year revenue growth for the December quarter, but this fell short of what many investors and analysts expected.
Moderating growth concerns: Markets were unimpressed because the pace of growth has slowed, and in some metrics like same-store sales and revenue per square foot, performance wasn’t strong enough relative to high expectations.
High valuation risk: Trent trades at relatively high valuation multiples, so even a modest miss or slowing momentum can trigger steep selling.
Profit-booking & sentiment: Some selling has also been attributed to short-term profit booking after recent gains, as well as broader caution in retail stocks.