Trent slumps 12% as Q1 FY27 revenue growth of 19% trails estimates
Trent shares fell over 12% to Rs 2,931 after its Q1 FY27 update showed standalone revenue of Rs 5,670 crore, up 19% YoY but below MOFSL's ~22% forecast. Revenue per store slipped 5% YoY as store additions moderated. Analysts flag near-term weakness but stay constructive on the medium term.
What happened
Trent shares fell 12% after Q1 FY27 business update showed 19% revenue growth, below MOFSL's ~22% estimate, with revenue per store declining 5% amid moderating
Key facts
- shares -12.34%
- low Rs 2,931
- standalone revenue Rs 5,670 crore
- revenue +19% YoY
- store count +26% YoY
- revenue per store -5% YoY
- total 1,312 fashion stores
- Westside 301 stores
- Zudio 982 stores
- 26 stores added Q1 FY27
Why this matters
Slowing store additions and softening per-store metrics may open windows for real-estate renegotiation or bolt-on format acquisitions to reaccelerate top-line growth.
What to watch
- Q2 FY27 store-addition pace and revenue-per-store trend
- Festive-season (Oct-Nov) demand data and monthly retail footfall proxies
- Zudio cannibalization commentary and gross margin trajectory
- Broader discretionary consumption prints (urban demand, GST collections)
- Support hold around Rs 2,900 vs continuation below
- Brokerages (MOFSL and peers) cut FY27 revenue/EPS estimates and trim target prices while retaining constructive ratings
- Read-through selling in adjacent value-fashion and QSR/consumption names (Aditya Birla Fashion, V-Mart, DMart)
- Trent management commentary on Zudio store economics and same-store trends at next update
- Momentum funds reduce exposure given rich valuation; value investors watch for stabilization