Trent shares slump over 12% after Q1 FY27 business update; should you wait or buy the dip?

Shares of Trent Ltd plunged 12.34 per cent in Tuesday's trade to hit a low of Rs 2,931 after the Tata Group fashion retailer released its business update for the June quarter (Q1 FY27).

Motilal Oswal Financial Services (MOFSL) said Trent reported standalone revenue of Rs 5,670 crore in Q1 FY27, marking a nearly 19 per cent year-on-year (YoY) increase. The brokerage noted that the growth was slightly below its expectation of around 22 per cent YoY.

According to MOFSL, revenue growth was largely supported by a roughly 26 per cent YoY increase in store count, while revenue per store declined about 5 per cent YoY compared with a 4 per cent fall in Q4 FY26.

"The decline in revenue per store indicates either a slower ramp-up of newer stores or the continuation of cannibalisation impact on select stores," the brokerage said.

MOFSL also highlighted that store additions were relatively moderate following the strong expansion seen in the March 2026 quarter. Trent added 26 stores during Q1 FY27, taking its total fashion-format store count to 1,312, up 26 per cent YoY. Westside added one net store, raising its store count to 301 (up 21 per cent YoY), while Zudio added 19 net stores to reach 982 outlets (up 28 per cent YoY). The company's other fashion-format store count increased by six (sequentially) to 29 and remained flat on a YoY basis.

Following Trent's softer-than-expected revenue growth, MOFSL said it expects the stock to witness a correction.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said the stock, which had been consolidating for the past three to four months, saw a sharp decline after the company's business update. He added that long-term investors may consider accumulating the stock on further declines, while cautioning that valuations remain elevated in the short- to medium-term.

From a technical standpoint, Trent's near-term outlook appears weak, with an analyst recommending against initiating fresh positions at the current levels.

Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One, said, "Despite the steep decline, the counter continues to trade above both its 200-DSMA and the breakout neckline, indicating that the broader technical structure remains intact. However, the negative price reaction has weakened near-term momentum, suggesting the possibility of additional corrective moves. The 2,900–2,830 zone is expected to act as a crucial support area. The medium-term outlook remains constructive as long as the stock sustains above this support range."

AR Ramachandran, a Sebi-registered research analyst at Tips2trades, noted, "The stock is bearish on daily charts with strong resistance at Rs 3,105. A daily close below the support of Rs 2,905 could trigger a fall towards Rs 2,835 in the near term."

Virat Jagad, Senior Technical Research Analyst at Bonanza, stated, "Trent is showing bearish price action. A fresh entry is not suggested due to this severe breakdown. Existing positions should be maintained with a strict stop loss of Rs 2,890."