Trent Q4 Results: stock falls from day's high ahead of earnings; focus on margins

Tata Group enterprise and Nifty 50 constituent Trent Ltd. will be reporting its March quarter results on Tuesday, April 29. With the company already having reported some aspects of the quarter as part of its business update, the focus will be on the internals delivered.

As part of its business update shared earlier this month, Trent had reported revenue growth of 28% on a year-on-year basis, which was the slowest for the company in 16 quarters.

In absolute terms, the provisional revenue figure for Trent stood at ₹4,434 crore, compared to ₹3,381 crore during the same period last year. For the full financial year, Trent reported revenue growth of 39% in comparison to financial year 2024.

Trent also mentioned in its business update that it added 13 new Westside stores during the March quarter, and opened another 132 Zudio outlets during the same period.

A CNBC-TV18 poll expects Trent's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to grow by 23.5% from last year to ₹580 crore, while margins may narrow by 120 basis points to 13%. An extended end-of-season sale may impact margins.

Back ended store additions, revenue guidance for the current financial year will be some key metrics to track for Trent. Analysts also expect a low single-digit like-for-like growth this quarter.

With its weakest revenue growth in four years, the question is how much of this is already in the price? Shares of Trent are down 6.6% in the last one month, having corrected nearly 40% from its all-time high of ₹8,345 in October last year.