Trent Q4 results preview: Will this RK Damani fav Tata group firm surprise stock investors in Q4?

Tata Group's retailer arm Trent is set to announce its results for the quarter and financial year ended on March 31, 2025 on Tuesday, April 29. The company board shall also consider dividend in the meeting today. The brokerage firms tracking the stock believe that the company may report a strong performance on the yearly comparison, while sequentially it may disappoint.
Analysts are pencilling a strong year-on-year (YoY) growth in revenue, Ebitda and net profit, while quarter-on-quarter (QoQ) performance may remain subdued despite a decent store addition. Ebitda margins may take a hit around 300 basis points (bps).


Equirus Securities has pencils net sales to come in at Rs 4,274 crore, up 29 per cent YoY and 5.9 per cent QoQ. Ebitda may come in at Rs 786.4 crore, up 26.2 per cent YoY and 22.7 per cent QoQ, with margins coming in 18.4 per cent for the quarter. PAT is seen at Rs 462.5 crore, up 34.6 per cent YoY and 9.2 per cent QoQ.

Trent should continue its outperformance vs the industry delivering 39 per cent kind of growth in 4Q led by surprisingly higher Zudio Store additions in 4Q. Margins to remain slightly impacted due to higher opex," it said. Equirus has a 'reduce' rating on the stock with a target price of Rs 5,541. It sees same store sales growth (SSSG) and operating margins as the key things to watch.
 

Shares of Trent rose more than 2.15 per cent to Rs 5,322.45 on Tuesday, with a total market capitalization close to Rs 1.9 lakh crore. The stock had settled at Rs 5,209.30 in the previous trading session on Monday. The stock has crashed nearly 38 per cent from its 52-week high at Rs 8,345.85, hit in October 2024.
 

Nuvama Institutional Equities expects Trent to report a revenue of Rs 4,305.9 crore, up 35 per cent YoY, but down 5 per cent QoQ. Ebitda is seen at Rs 639.5 crore, up 34 per cent YoY but falling 24 per cent sequentially. Core PAT is seen at Rs 306.7 crore, falling 35 per cent QoQ.

"We built an addition of 98 fashion stores in Q4FY25 on a net basis. Overall, we expect Trent to report industry-leading growth again and build a revenue growth of 35 per cent YoY. We expect gross margins to moderate about 60 bps YoY and remain in line sequentially. We expect Trent to report an Ebitda margin of 14.9 per cent with Ebitda  expected to increase 34 per cent YoY," said Nuvama.
 

Seasoned Dalal Street investor Radhakishan Damani owned 45,07,407 equity shares, or 1.27 per cent, stake in Trent as of March 31,2025, through his affiliate Derive Trading & Resorts. His stake in the company is valued nearly Rs 2,400 crore as of Tuesday.
 

Meanwhile, Kotak Institutional Equities expects Trent to report a revenue of Rs 4,340.8 crore in the March 2025 quarter, up 36.2 per cent YoY, but down 4.3 per cent QoQ. Ebitda is seen at Rs 668.5 crore. up 40 per cent YoY but down 20 per cent QoQ, with Ebitda margins contracting over 308 bps QoQ to 15.4 per cent. Net Profit may come in at Rs 330.4 crore, down 50 per cent YoY and 29 per cent QoQ.

"We model revenue growth driven by new store additions in Zudio (122 net store additions on a QoQ basis) and Westside (10 net store additions on a QoQ basis. We expect YoY area growth of 43 per cent driven by addition of larger sized stores. We expect gross margin to decline 30 bps QoQ on account of higher mix of revenues from Zudio," Kotak added, with a 'reduce' rating on it.