Trent share price today: Why the stock may see correction post Q1 update

MOFSL, in a note on Tuesday, said Trent's stock has rallied 23 per cent over the past one month and 50 per cent from its March 2026 lows on expectations of a further acceleration in revenue growth. However, after the Tata group retailer delivered 20 per cent year-on-year (YoY) growth in the March quarter, its 19 per cent YoY provisional revenue growth for Q1, as indicated in its latest business update, fell short of expectations, the brokerage said. MOFSL believes the weaker-than-expected performance could trigger a correction in the stock.

In the pre-open session, Trent shares were trading 10 per cent lower at Rs 3,009.10 apiece on BSE. "Revenue growth is weaker than expected; negative for the stock in short term," SBI Securities said in a note.

MOFSL said Trent’s Q1 standalone revenue stood at about Rs 5,666 crore, up 19 per cent YoY against its estimate of 22 per cent YoY. Revenue from sale of products, net of GST, grew 19 per cent YoY. The growth was primarily driven by 26 per cent YoY increase in store count, with revenue per store declining 5 per cent YoY, MOFSL said noting that revenue per store had declined 4 per cent YoY in the March quarter.

This indicated either a slower ramp-up of newer stores or continuation of cannibalization impact on select stores.

For the June quarter, the company added 26 stores, bringing the total fashion format store count to 1,312, up 26 per cent YoY.Westside added one net store for the quarter, bringing its overall store count to 301, up 21 per cent YoY). Zudio witnessed 19 net store openings in Q1 to reach 982 stores (up 28 per cent YoY).

Trent’s other fashion format store count increased by six QoQ to 29, flat YoY.

"Trent’s stock price has rallied in the past few weeks in anticipation of further acceleration in revenue growth. In this context, the 19 per cent YoY revenue growth is weaker and would likely lead to correction in the stock," MOFSL said.

In its Q1 preview note, MOFSL had expected 22 per cent revenue growth driven by store additions and same-store sales growth recovery. It expected gross margins to remain stable YoY for the quarter, while operating margins to improve by 50 basis points, driven by operating leverage.

MOFSL had estimated Ebitda to grow 25 per cent YoY, while it expected profit after tax to rise 19 per cent YoY. The brokerage had anticipated 15 store additions in Zudio, while Westside store count could remain stable QoQ at 300, MOFSL suggested earlier.