Shares of Trent Ltd witnessed a sharp 9% decline on July 4, 2025, after the company announced a deceleration in its growth outlook during its Annual General Meeting.
With revenue expansion in Q1 FY26 estimated at 20%, which is significantly below the 5-year average growth rate, prompting a market reaction.
During its AGM, Trent indicated that revenue growth for Q1FY26 is projected at around 20%, compared to its previous 5-year CAGR of 35%. This signalled a potential shift in the company’s ongoing expansion momentum. The company confirmed this forecast in its official quarterly business update, highlighting standalone revenue of ₹5,061 crore for the April to June 2025 quarter.
In its recent disclosure, Trent reported positive but moderated performance across its fashion retail divisions. The company’s store network at the end of Q1 FY26 comprised 248 Westside outlets, 766 Zudio locations, and 29 other lifestyle format stores, indicating continued retail expansion. Despite this, reduced revenue growth expectations triggered investor caution.
Previously, Trent had identified a 25% revenue CAGR as sustainable. The Q1 FY26 estimate of 20%, although double-digit, marks a meaningful contraction against the company’s multi-year robust growth trends.
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Trent shares opened at ₹5,675 on July 4, 2025, reflecting a 9% decline. This drop followed investor unease surrounding the company's moderated outlook.
On July 4, 2025, Trent share price opened at ₹5,675 on NSE, below the previous close of ₹6,191.00. During the day, it surged to ₹5,785.00 and dipped to ₹5,652.00. The stock is trading at ₹5,723.00 as of 10:54 AM. The stock registered a significant decline of 7.56%.
Over the past week, it has declined by 7.95%, over the past month, it has declined by 0.85%, and over the past 3 months, it has moved up by 2.97%.
While growth rates showed deceleration, the management maintained that the business remains fundamentally strong. With over 1000 stores under various banners, Trent continues to expand its footprint. The company also emphasised that the retail space remains large enough to support multiple operators, suggesting a long-term vision for sustainable scaling.
Trent’s revelation of slower projected growth in Q1FY26 triggered a 9% decline in its stock price. The company cited 20% growth versus a historical CAGR of 35%.
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Published on: Jul 4, 2025, 11:59 AM IST
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