Shares of Tata Group’s Trent Ltd. fell nearly 9% in early trade on Friday, July 4, after the company flagged slower growth expectations during its Annual General Meeting (AGM) and brokerages issued downgrades. The stock touched ₹5,766.50 on NSE, down from its previous close of ₹6,191.
At its AGM, Trent’s management indicated that it expects revenue growth in Q1FY26 to be around 20%, much lower than its five-year CAGR of 35%. The company’s business update confirmed this, reporting standalone Q1FY26 revenue at ₹5,061 crore, up 20% from ₹4,228 crore a year earlier.
The company added one new Westside store and 11 Zudio outlets during the quarter, taking its total to 248 Westside, 766 Zudio (including two in the UAE), and 29 stores under other lifestyle concepts.
However, analysts took a cautious view. Brokerage Nuvama downgraded Trent to “hold” from “buy,” slashing its FY26 and FY27 revenue growth estimates by 5% and 6%, and EBITDA estimates by 9% and 12%. It also cut its price target to ₹5,884 from ₹6,627 earlier.
On the other hand, Morgan Stanley maintained an “overweight” rating with a target of ₹6,359, citing long-term growth potential at a 25–30% CAGR.
Of the 25 analysts covering Trent, 18 rate it a “buy,” four a “hold,” and three a “sell.”
The company’s update underscores a healthy retail footprint and ongoing expansion but highlights the challenges of sustaining high growth rates in a competitive environment.
