Trent shares extend losses after Q2 update; Morgan Stanley cuts target

Shares of Tata Group’s retail arm Trent Ltd. fell as much as 4% on Tuesday, October 7, extending its losses from Monday. The stock fell 4% from the day's high on Monday after it released its second quarter business update, just minutes before closing.

reported a 17% year-on-year rise in standalone revenue from operations to ₹5,002 crore for the quarter ended September 2025, up from ₹4,260 crore in the same period last year.

For the first half of FY26, revenue climbed 19% to ₹10,063 crore, compared with ₹8,488 crore a year earlier, reflecting sustained consumer traction across its key retail formats — Westside and Zudio. Company said 25% revenue CAGR sustainable at Analyst Meet, earlier. 

As of September 30, 2025, Trent’s portfolio comprised 261 Westside stores, 806 Zudio stores (including three in the UAE), and 34 outlets across other lifestyle concepts.

The company added a net 53 new stores in the second quarter — 13 Westside and 40 Zudio outlets.

Shares of Trent Ltd slipped 2.3% to

₹4,705 on the NSE after the announcement, recovering slightly from an intraday low of ₹4,689.60.

The latest quarterly update reflected a mild moderation in growth momentum compared to the June quarter. Notably, brokerage firm Bernstein had earlier flagged a significant slowdown in revenue growth in Q1 FY26, which came in at 20% — sharply lower than the 57% recorded in Q1FY25.

In Q1 FY26, the company had delivered a healthy set of results, with net profit up 8.5% at ₹424.7 crore and EBITDA up 38% year-on-year to ₹848 crore.

Margins expanded to 17.3% from 15%, comfortably exceeding Street expectations.

Shares of Trent are trading 3.6% lower at ₹4,606.

Also Read: Trent Q1 Results: Beats estimates on all fronts; profit at ₹425 crore, margins expand