Shares of Trent Limited fell over 6% on Monday, November 10, after the company reported its September quarter (Q2 FY26) results. The stock declined 6.04% to Rs 4,347.60 on NSE, compared to the previous close of Rs 4,627.30, with market capitalization standing at Rs 1.55 lakh crore.
The company’s revenue growth remained soft during the quarter, while reported EBITDA rose 26.5% and operating EBITDA grew 14% year-on-year. Profit after tax declined due to higher depreciation expenses, while overall sales momentum was affected by subdued consumer sentiment.
Trent continued to expand its retail footprint in Q2 FY26, opening 19 new Westside stores and closing six, while adding 44 Zudio stores and shutting four, including one in the UAE.
Brokerages have turned cautious following the quarterly update. Citi downgraded the stock to a ‘Sell’ rating, cutting the target price to Rs 4,350 from Rs 7,150, citing moderating growth and rising competition. Goldman Sachs maintained a ‘Neutral’ stance but reduced the target to Rs 4,920, noting weaker-than-expected operating EBIT growth due to unseasonal rains and shifting consumer preferences.
Jefferies maintained a ‘Hold’ rating with a revised target of Rs 5,000, highlighting decelerating revenue growth at 17% — a multi-quarter low. The brokerage noted that while store expansion remained strong, like-for-like growth in fashion stayed muted. Morgan Stanley maintained its ‘Overweight’ view with a target price of Rs 5,456 per share.
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