Trent Shares Fall Over 8% After Q3 Revenue Grows 17% but Misses Market Expectations
Indian retail company Trent Ltd. saw its share price fall sharply on Tuesday after reporting its latest quarterly update. The stock dropped by around 8.3% in early trading, even though the company delivered a 17% year-on-year rise in standalone revenue for the three months ended 31 December 2025.
The fall wiped out a significant portion of market value and made Trent one of the biggest drags on major Indian stock indices during the session.
Revenue Rises to ₹5,220 Crore, Growth Pace Slows
In its December quarter business update, Trent reported standalone revenue of INR 5,220 crore, up 17% from the same period last year. This growth was supported by ongoing sales in both its value-fashion and lifestyle segments.
However, investors were disappointed that the pace of growth did not accelerate compared with the prior quarter. In fact, the year-on-year increase was similar to the previous three months, suggesting that momentum is slowing.
Market watchers said this lack of acceleration was a key reason for the sharp reaction in the stock price. Analysts had expected stronger improvement, and when that did not materialise, sentiment turned negative.
Trent Stock Hits Intraday Low, Market Value Takes a Hit
On the first trading session after the update, Trent’s shares hit an intraday low of INR 4,060.65 on the BSE, marking a significant drop from recent levels. The stock closed roughly 8% lower on the day, and over the past year, it has seen notable pressure in valuation.
The slide erased an estimated INR 13,000 crore in market capitalisation, underscoring how sensitive investors have become to signs of slower growth.
Trent’s stock had already corrected nearly 50% from its peak, making even modest disappointments more impactful.
Store Expansion Continues, Yet Investors Flag Slower Sales Momentum
Despite concerns over growth pace, Trent continued to expand its retail footprint in the quarter. The company added 48 Zudio stores and 17 Westside outlets, bringing its total to 854 Zudio outlets and 278 Westside stores by the end of December.
This expansion helped drive overall revenue, but analysts pointed out that much of the increase stemmed from greater store count rather than stronger performance at existing outlets. Some brokers highlighted weaker revenue per store, which suggests that sales productivity could be lagging.
Analyst Views Mixed as Concerns Grow
Market reactions reflect a mix of views. Some brokerages see the recent share price correction as an opportunity for long-term investors, given Trent’s strong brand position and store presence. Others remain cautious, noting that slowing same-store sales and lower revenue per square foot are potential warning signs.
Investor sentiment remains sensitive to growth expectations, especially in the retail sector, where competition from other fashion chains is increasing.
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