By Anurag Kumar
Tata Group firm Trent witnessed a slump of 11% on Friday, trading at Rs 5,497 at noon. The dip comes just a day after the company held its annual general meeting (AGM). Trent is a leading retail company in India. Trent Ltd, known for its robust portfolio of brands like Westside, Zudio, and Star Market, witnessed a sharp sell-off after the company’s Q1 FY26 business update failed to meet investor expectations. What Spooked the Market? Despite a strong retail footprint and expansion momentum, Trent’s standalone revenue rose 20% year-on-year to Rs 5,061 crore in the June quarter. While this signals solid growth, it disappointed analysts who had projected a 25% growth rate — a benchmark aligned with the company’s own long-term ambitions. Trent currently operates 248 Westside stores, 766 Zudio outlets (including 2 in the UAE), and 29 stores across other lifestyle concepts, showcasing its aggressive retail expansion strategy. Analyst Downgrades Trigger Concern Brokerage house Nuvama Institutional Equities downgraded Trent’s growth outlook, citing concerns over scale-up in new business verticals like Zudio Beauty and the Star Market grocery format. While analysts acknowledged their long-term potential, they emphasised the need for operational stability before these segments can meaningfully drive earnings. Nuvama trimmed its revenue forecast for Trent by 5% for FY26 and 6% for FY27, while gross operating profit estimates were cut by 9% and 12%, respectively. This downgrade was one of the key triggers behind Friday’s stock slide. Expansion Plans Still Intact Trent maintained that FY25 remains a growth year, with plans to add over 250 stores across all formats. The company may increase that number further depending on market conditions and property availability. However, in its investor update, Trent also acknowledged macroeconomic challenges, citing inflation among other factors that impacted discretionary spending in the sector. Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world.