Trent Shares down upto 4% as Q2FY26 Update Reveals Store Growth Slows to 17% YoY

On Tuesday, the Trent share is down 3.92 percent, touching a day’s low price of Rs 4,590 on NSE after it released its Q2FY26 business update, which reflects a moderation in growth across both its store expansion and revenue performance. The company’s stock currently trades at historically high valuation multiples, with its latest TTM P/E hovering above 100.

Q2FY26 Performance

Trent’s standalone revenue for Q2FY26 rose 17 percent year-on-year to Rs 5,002 crore, substantially lower compared to the company’s historical growth rates and long-term targets. Revenue for H1FY26 reached Rs 10,063 crore, up 19 percent YoY, but again marks a slowdown versus the over 20 percent growth seen in Q1FY26 and previous years. This deceleration has raised concerns among analysts, leading to a downward revision of target prices.

Store Expansion Trends

During Q2FY26, Trent added 13 new Westside outlets and 40 Zudio stores to its portfolio, taking the total count as of September 30, 2025, to 261 Westside and 806 Zudio stores, including three in the UAE. Zudio, its value fashion chain, continues to outpace flagship Westside in terms of new additions, with Zudio store rollouts consistently three times higher than Westside since last year. The company also operates 34 stores under other lifestyle concepts, reinforcing its diversified retail approach.

Revenue Growth

Revenue growth has notably slowed and failed to meet both management's stated long-term target of 25 percent, according to sources. The second quarter’s 17 percent growth is the lowest, with intensified competition in the fashion and lifestyle segments.

High Valuation and Stock Performance

The moderation in growth is in the spotlight as Trent’s stock trades at a premium valuation, with the current TTM P/E ratios reported above 100 times, as per various sources. This multiple not only exceeds sector averages but also reflects strong investor optimism about future growth, which can raise concerns of overvaluation as near-term performance disappoints. The stock has corrected 34 percent since the start of the year 2025 and trades 43 percent below its all-time high, reflecting the market reassessment of its prospects.

As per sources, the Brokerages have trimmed their target prices following slower growth, with firms such as Goldman Sachs maintaining its Neutral rating while reducing share price to Rs 5,300 from Rs 5,600 earlier. Morgan Stanley continues to maintain an overweight stance but has revised its price target lower, projecting a slight expansion in EBITDA margins due to efficiency improvements despite short-term softer revenue growth. Zudio is still growing, but the pace of growth has slowed down.