Bernstein has reiterated its outperform rating on Trent Ltd while trimming its target price to ₹5,000 per share, stating that the company’s revenue growth has likely bottomed out and is now poised for a gradual recovery. The brokerage said several key drivers are expected to support an upward inflection, including positive like-for-like (LFL) growth in split stores aided by a favourable base, a sustained three-year 20% CAGR expansion in the Zudio store network, an improving consumer demand cycle and continued strength in Westside.
According to Bernstein, Trent’s structural advantages — strong brand resonance, disciplined expansion strategy and industry-leading execution — continue to position it well for long-term growth despite near-term moderation. The firm expects Zudio to remain a powerful growth engine, supported by rapid store additions and a widening value-fashion customer base. Meanwhile, Westside’s steady performance and improving discretionary appetite should help strengthen blended revenues through FY26.
However, Bernstein flagged rising competition as a key risk, noting that more retailers are expanding aggressively, with some attempting to replicate Zudio’s fast-fashion cadence and high-turnover merchandising strategy. Even so, the brokerage believes Trent is well placed to defend market share and deliver a strong recovery, building in 19% revenue growth for FY26 and a 20% CAGR over FY26–28.
Disclaimer: The views and recommendations above are those of Bernstein. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
