Trent Share Price Slumps 10% After Slower Growth Guidance in AGM

Trent's share price experienced a 10% decline in early trade on Friday, July 4, following cautious growth commentary from the company during its Annual General Meeting (AGM). The Tata Group's retail arm indicated a moderation in growth momentum for the ongoing fiscal year, which led to negative investor sentiment.

Market Performance

• Trent Ltd.'s share price fell by 10% at the opening bell on July 4.
• The sudden drop occurred after the company issued a statement indicating lower-than-expected growth for Q1 FY26.
• This decline reflects investor concerns surrounding the company's revised outlook.

Main News

During its AGM, Trent Ltd. revealed that Q1 FY26 growth is expected to be around 20%, a notable drop when compared to its 5-year Compounded Annual Growth Rate (CAGR) of 35%.

This forward-looking statement was also confirmed in the company's quarterly update filed with the stock exchanges.

Despite continuing its expansion strategy, the moderation in growth guidance raised caution in the market.

Company Details

Trent Ltd., a key player in India's retail sector and part of the Tata Group, continues to expand its store presence aggressively:

• 248 Westside stores
• 766 Zudio stores
• 29 additional outlets across other lifestyle formats

This takes the total count to over 1,000 retail locations as of the end of the June quarter.

Revenue

• In Q1 FY26, Trent reported standalone revenue of ₹5,061 Crore
• This represents a 20% Year-on-Year (YoY) increase

Despite this positive revenue number, the slower growth projection has led to caution among market participants.

EBITDA and Margins

Although specific EBITDA figures were not disclosed in the quarterly update, earlier projections suggest a cut in future estimates.

The company indicated possible revisions to financial targets in upcoming periods, aligning with the updated revenue outlook.

Net Profit

There was no direct mention of net profit figures in the update. However, overall financial sentiment remains cautious due to the trimmed growth outlook.

Summary of the Article

Trent's share price took a 10% hit after the company signaled slower-than-usual growth during its Annual General Meeting. With Q1 FY26 growth expected to be around 20%, the numbers fall short of Trent's historic CAGR of 35%.

While the retailer posted a 20% YoY rise in standalone revenue to ₹5,061 Crore, concerns remain over the sustainability of such growth. Despite expanding its retail footprint with over 1,000 stores, the conservative guidance has tempered market enthusiasm.