Shares of Trent Ltd fell sharply in Monday’s session, slipping nearly 5% from the day’s high to close 2.3% lower at ₹4,705 on the NSE. The decline came after the Tata Group retail arm reported a moderation in its revenue growth pace for the September quarter (Q2 FY25), which came in below street estimates.
According to the company’s Q2 business update, standalone revenue rose 17% year-on-year (YoY) to ₹5,002 crore, compared to ₹4,260 crore in the same period last year. This marks a slowdown from the 20% YoY growth reported in Q1 FY25 and is significantly lower than analysts’ projections of around 25%.
Market participants pointed out that the company’s revenue growth — which had averaged a robust 35% CAGR over the last few years — has now shown signs of tapering, raising concerns about the near-term momentum in Trent’s retail performance.
During the quarter, Trent expanded its footprint by adding 261 Westside stores, 806 Zudio stores, and 34 outlets across other lifestyle formats, continuing its aggressive store expansion strategy.
Despite the strong expansion, investors appeared cautious over the deceleration in revenue growth, triggering profit-booking in the counter. At the time of closing, Trent’s market capitalization stood at ₹1.69 lakh crore.
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