Trent Ltd, a Tata Group retail company known for brands like Westside and Zudio, reported a 25% year-on-year increase in consolidated net profit to ₹468 crore for the September quarter (Q2 FY27). This growth was supported by revenue increases and operating leverage despite an inflationary environment.
- Consolidated revenue rose 22% to ₹5,873 crore in Q2 FY27.
- Operating EBITDA increased 37% to ₹785 crore in the quarter.
- Standalone revenue grew 23%, with net profit up 9%.
- Operating EBIT margin improved from 10.5% to 11.6% year-on-year.
- Like-for-like (LFL) sales growth recovered to mid-single digits.
- Concerns remain about input-cost inflation and margin sustainability.
What Were Trent’s Key Financial Highlights in Q2 FY27?
Trent’s consolidated revenue from operations increased by 22% to ₹5,873 crore for the quarter ending September 30, 2026. Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 37% to ₹785 crore. For the first half of FY27, consolidated revenue grew 20% to ₹11,628 crore, and net profit rose 24% to ₹986 crore. Operating EBITDA increased 35% to ₹1,633 crore.
On a standalone basis, revenue climbed 23% to ₹5,788 crore, while operating EBITDA rose 37% to ₹791 crore. Net profit increased 9%, partly due to a higher base in the previous year that included gains from asset sales.
How Did Trent’s Margins Perform?
Trent’s operating EBIT margin improved to 11.6% in Q2 FY27 from 10.5% a year earlier. The company showed resilience in gross margins despite raw material inflation, with gross margin expanding by 121 basis points to 44.5%. This margin strength was supported by premiumisation and product elevation strategies.
What Is Like-for-Like (LFL) Growth and How Did Trent Perform?
Like-for-like growth measures sales growth at stores open for more than a year, excluding new store openings. Trent’s fashion LFL growth improved to mid-single digits in Q2 FY27, recovering from low single digits in Q1. This recovery occurred despite a shift in the festive calendar, which can affect seasonal sales patterns.
What Are Analysts Saying About Trent’s Performance?
Analysts highlighted several positives, including better-than-expected margin resilience and LFL sales recovery. Jefferies noted a 37% year-on-year growth in pre-Ind AS EBITDA, though the figure was slightly below estimates. HSBC reported a 2% beat in Q2 EBITDA, driven by gross margin resilience despite raw material cost pressures. Citi pointed out a 23% revenue growth and 30% EBITDA increase but noted a 71% decline in other income, which limited net profit growth.
However, concerns remain about input-cost inflation, revenue productivity per square foot, and the sustainability of margins in the second half of FY27. Citi emphasized the importance of monitoring these factors before becoming more optimistic about the stock.
What Risks Does Trent Face Going Forward?
Key risks include rising input costs that could pressure margins and demand. Revenue productivity per square foot declined by 8.4% year-on-year, and slower store additions at Zudio and Westside brands were noted. The company’s ability to sustain margin improvements amid inflation and scale newer pilot formats will be crucial for future performance.
Frequently Asked Questions
Q: What brands does Trent operate?
A: Trent operates popular retail brands such as Westside and Zudio.
Q: How much did Trent’s net profit grow in Q2 FY27?
A: Consolidated net profit grew by 25% year-on-year to ₹468 crore.
Q: What is like-for-like growth?
A: Like-for-like growth measures sales growth at stores open for more than a year, excluding new stores.
Q: What challenges could affect Trent’s future margins?
A: Rising input costs, slower revenue productivity, and inflationary pressures are key challenges.
Trent’s Q2 FY27 results demonstrate strong revenue and profit growth supported by margin resilience and improving sales trends. While the company faces challenges from inflation and cost pressures, its performance highlights effective management and potential for continued growth.
