Trent Q3 FY26 Results: Zudio Drives Growth Amid Consumption Moderation

Trent Limited Q3 FY26 performance highlights the company’s ability to sustain growth despite a moderation in overall consumer spending. The Tata Group’s retail arm reported a steady 17% year-on-year increase in standalone revenue, underlining the resilience of its business model and the growing dominance of its value-fashion brand, Zudio.

While the broader consumption environment in India showed signs of caution during the quarter, Trent’s strategic focus on affordable fashion, aggressive store expansion, and disciplined execution helped it outperform many peers in the retail sector.

Trent Q3 FY26 Financial Performance Overview

For the December 2025 quarter (Q3 FY26), Trent posted standalone revenue of ₹5,220 crore, compared to ₹4,466 crore in the corresponding quarter last year. Although growth has moderated from the sharp post-pandemic expansion, the performance reflects healthy underlying demand and strong operational execution.

Key highlights include:

• 17% YoY revenue growth in Q3 FY26
• Stable performance despite uneven consumer sentiment
• Continued traction in value-fashion and lifestyle segments

This steady growth demonstrates Trent’s ability to adapt to changing consumer behaviour without sacrificing scale or profitability.

Zudio: The Core Growth Engine

Zudio remains the primary growth driver for Trent, accounting for the bulk of new store additions and incremental revenues. As of December 2025, the company operated 1,164 stores, with Zudio accounting for the majority of the portfolio.

Store Portfolio Breakdown (December 2025)

• Zudio: 854 stores
• Westside: 278 stores
• Others: 32

Zudio’s success is anchored in:

• Affordable pricing, appealing to mass and value-conscious consumers
• Rapid store rollout, particularly in Tier-2 and Tier-3 cities
• High inventory churn, enabling faster fashion cycles

The brand’s expansion into the UAE, with four Zudio stores already operational, signals early but meaningful steps toward international growth.

Westside: Stability Over Aggressive Growth

While Zudio continues to scale rapidly, Westside has experienced relatively slower momentum. However, it remains a significant contributor to Trent’s overall revenue base, offering stability and brand strength in the mid-premium fashion segment.

Westside’s role is increasingly complementary:

• Anchors Trent’s lifestyle positioning
• Provides margin stability
• Balances the high-growth, high-volume Zudio model

This diversified format strategy allows Trent to capture multiple consumer segments across income brackets.

Consumption Moderation and Market Context

India’s consumption landscape during Q3 FY26 remained mixed, with discretionary spending facing pressure from:

• Higher cost of living
• Uneven rural and urban demand recovery
• Cautious consumer sentiment

Despite these headwinds, Trent managed to maintain growth by focusing on value-led consumption, where affordability and accessibility matter more than discretionary premium spending. Zudio’s positioning aligns well with this trend, making it relatively insulated from short-term consumption volatility.

Strategic Execution and Store Expansion

Trent’s growth strategy continues to revolve around physical retail expansion, supported by efficient supply chains and centralized sourcing. The company’s ability to open stores at scale without materially diluting operational efficiency remains a key competitive advantage.

Key execution strengths include:

• Faster breakeven timelines for new stores
• Strong backend integration
• Scalable business model across geographies

These factors position Trent favourably as consumption gradually normalises.

Outlook: Steady Growth with Zudio at the Centre

Looking ahead, Trent’s growth trajectory is expected to remain Zudio-led, with continued store additions and deeper penetration into underserved markets. While overall consumption may remain selective in the near term, value fashion is likely to stay resilient.

Key positives for Trent going forward:

• Strong brand recall in value fashion
• Expanding footprint across India and select overseas markets
• Balanced portfolio with Zudio driving growth and Westside providing stability

Although growth rates may not mirror the explosive expansion of previous years, Trent’s Q3 FY26 performance reinforces confidence in its long-term structural growth story within India’s organised retail space.

Final Takeaway

Trent Q3 FY26 results underline the company’s ability to grow through cycles. Zudio’s continued dominance, disciplined expansion, and resilience amid consumption moderation position Trent as one of India’s most compelling retail growth stories over the medium to long term.