Trent on "shopping" list

Trent is currently among the top three gainers on the BSE, rising 5.86% to Rs. 3,033.95, a gain of Rs. 167.95 over its previous close of Rs. 2,866. The stock opened at Rs. 3,015 and touched an intraday high of Rs. 3,059. Trading volume stood at 1.88 lakh shares against its two-week average of 0.39 lakh, with turnover of Rs. 56.98 crore. Market capitalisation stood at Rs. 1.62 lakh crore. Market depth showed sell quantity of 54,277 shares against buy quantity of 24,267 shares, indicating some profit booking after the sharp rally.

Trigger

• Strong Q2 FY27 results announced on October 29, after market hours.
• Consolidated revenue increased 22% YoY to Rs. 5,873 crore.
• Consolidated operating EBITDA rose 37% YoY to Rs. 785 crore.
• Consolidated net profit increased 25% YoY to Rs. 468 crore.
• Fashion business like-for-like sales growth recovered to mid-single digits from low-single-digit growth in recent quarters.
• Gross margins improved by approximately 120 bps YoY to 44.5%.
• Trent crossed the milestone of its 1,000th Zudio store during the quarter.

The biggest positive is the recovery in Trent's fashion business. After several quarters of subdued same-store growth, improving customer demand and stronger gross margins suggest that growth is becoming less dependent on opening new stores.

During Q2, Trent opened 10 Westside and 19 Zudio stores, taking its portfolio to 1,342 stores across 339 cities, including other lifestyle formats. Emerging categories such as beauty, personal care, innerwear and footwear contributed over 21% of revenue.

While standalone PAT grew only 9% YoY to Rs. 490 crore, the previous year's profit included a Rs. 96 crore pre-tax gain from asset sales, making the headline comparison less representative of underlying business performance. Trent's Star grocery business also recorded revenue growth exceeding 20%, with own brands contributing over 74% of sales.

Separately, Noel Tata will retire as Chairman on November 11, 2026, with Bahram Vakil taking over from November 12. However, the immediate stock rally appears primarily earnings-driven rather than linked to the leadership transition.

At a consolidated PE of 84.66 times and price-to-book of 31.71 times, Trent continues to command a substantial premium.