Tata Group’s Trent Share Price Rallies Over 5% as Emerging Categories Contribute 21% of Revenue, EBIT Margin Rises to 11.6%

Trent’s retail expansion is increasingly centred on its value-fashion chain Zudio, which had reached 982 stores by June 30, 2026, alongside Westside and the developing Star food and grocery network. The Tata group retailer has now reported a 23 per cent YoY rise in standalone revenue from operations to Rs 5,788 crore for the quarter ended September 30, 2026, as Zudio crossed the 1,000-store milestone during the period.

Operating earnings before interest, Tax, depreciation and amortisation, or EBITDA, rose 37 per cent to Rs 791 crore, while profit after tax, or PAT, increased 9 per cent to Rs 490 crore. For the first half of financial year 2026-27, or FY27, standalone revenue grew 21 per cent to Rs 11,454 crore, operating EBITDA increased 37 per cent to Rs 1,638 crore and PAT rose 17 per cent to Rs 1,021 crore.

The margin trend was stronger than the PAT comparison alone suggests. Operating earnings before interest and tax, or EBIT, margin improved to 11.6 per cent from 10.5 per cent in the corresponding quarter of FY26. The previous-year period had included a pre-tax profit of Rs 96 crore from asset sales, which lifted reported PAT. Revenue from merchandise sales, excluding other operating income, rose 23 per cent during the quarter, indicating that the core retail business remained the principal growth driver.

On a consolidated basis, revenue rose 22 per cent YoY to Rs 5,873 crore, while operating EBITDA grew 37 per cent to Rs 785 crore and PAT increased 25 per cent to Rs 468 crore. Trent opened 10 Westside stores and 19 Zudio stores during the quarter, while consolidating two Zudio locations. As of September 30, its portfolio included 311 Westside stores, 999 Zudio stores and 32 stores under other lifestyle concepts. Emerging categories such as beauty, personal care, innerwear and footwear contributed over 21 per cent of revenue. Star’s revenue grew more than 20 per cent, taking its network to 87 stores across 13 cities.

As of 9:20 am on October 30, 2026, Trent shares were trading at Rs 3,020, up 5.37 per cent from the previous close. The stock was about 9.7 per cent below its 52-week high of Rs 3,343.40. Over one year, the shares were down 10.23 per cent, compared with an 8.63 per cent decline in the BSE 500, indicating a modest underperformance against the benchmark over the same period.

What This Means for Investors

The quarter reinforces Trent’s store-led growth strategy, as revenue growth and a 1.1-percentage-point gain in operating earnings before interest and tax margin indicate improving operating leverage. Yet the asset-sale comparison means profit after tax growth is not a like-for-like measure of underlying earnings. Expansion into Tier 2 and Tier 3 markets extends the addressable market, but it also increases the need for tight merchandising, replenishment and store productivity.

Star adds a second growth engine, and its own brands now account for over 74 per cent of revenue, which can support assortment control and store economics. For investors, the update is potentially supportive of medium-term earnings visibility, but it leaves a high execution bar. At 86.15 times trailing 12-month price-to-earnings, or P/E, the valuation still prices sustained growth. The central risk is whether Zudio can preserve sales densities, inventory discipline and margins as its network expands.

Disclaimer: The article is for informational purposes only and not investment advice.