Trent shares jump 7% after strong Q2 results, Zudio's 1,000-store milestone

Trent share price jumps 7%

NEW DELHI: Trent shares jumped almost 7% on Friday after the Tata Group's retail arm reported a strong 25% year-on-year increase in consolidated net profit for the September quarter.The stock climbed 6.73% to Rs 3,059 on the BSE, while its NSE-listed shares gained 6.92% to Rs 3,060. The rally added Rs 9,088.92 crore to the company's market capitalisation, taking it to Rs 1,61,769.32 crore.The company, which operates popular retail brands such as Zudio and Westside, reported a consolidated net profit of Rs 468 crore for the quarter ended September 30. Revenue from operations rose 22% year-on-year to Rs 5,873 crore, while operating EBITDA grew at a faster pace of 37% to Rs 785 crore.

Trent's Q2 earnings: Revenue, operating profit grow at a faster pace

Trent's operating performance improved during the September quarter, with its operating EBIT margin expanding to 11.6% from 10.5% in the corresponding period last year.For the first half of FY27, consolidated revenue increased 20% to Rs 11,628 crore, while net profit climbed 24% to Rs 986 crore. Operating EBITDA for the six-month period rose 35% to Rs 1,633 crore.On a standalone basis, the company reported a 23% rise in revenue from operations to Rs 5,788 crore.

Operating EBITDA increased 37% to Rs 791 crore, while net profit grew 9% to Rs 490 crore.The difference between standalone profit growth and operating earnings growth was partly due to a higher base in the previous year. Trent's Q2 FY26 and H1 FY26 results included pre-tax profits from asset sales of Rs 96 crore and Rs 109 crore, respectively. No material corresponding gains were recorded in the current-year periods.

Zudio, Westside expansion: Trent strengthens fashion retail presence

Store expansion remained a key part of Trent's business during the quarter, with the company opening its 1,000th Zudio store. Its retail portfolio as of September 30 included 999 Zudio outlets, seven of which were in the UAE, alongside 311 Westside stores and 32 outlets under other lifestyle concepts.During Q2, Trent added 19 Zudio and 10 Westside stores, while consolidating two Zudio outlets. Its fashion retail footprint crossed 18.5 million square feet, spanning 339 cities, including three cities in the UAE.The company is scaling Zudio's value-fashion offering alongside Westside's broader lifestyle and fashion portfolio. Trent said the response to its brands in tier-two and tier-three markets had encouraged it to expand into smaller cities and hinterland locations.Categories such as beauty and personal care, innerwear and footwear also contributed to the business, accounting for more than 21% of standalone revenue.Westside's digital operations recorded 20% revenue growth in the first half of FY27. Online sales contributed more than 6% of the brand's revenue, with business coming through its own platform and its presence on Tata Neu.

Star food and grocery business: Revenue grows over 20%

Trent's food and grocery business, Star, reported revenue growth of more than 20% in the September quarter, despite operating in a competitive environment.The company added one outlet during the quarter, taking Star's total store count to 87 across 13 cities.

Its own-brand products accounted for more than 74% of revenue.According to the company, its private-label strategy was helping improve the business's economic profile at the store level. Tata said Trent remained confident about the food and grocery segment and would continue investing in its expansion, with a focus on building scale and strengthening its market position.Commenting on the company's performance, Noel N Tata, chairman of Trent, said, "Our brands experienced solid traction during the quarter. It was encouraging to witness a more robust consumer sentiment despite the relatively inflationary backdrop,"Reflecting on his tenure as chairman, Tata said, "As I conclude my tenure as Chairman of Trent, I could not be more delighted at the enormous strides the Company has made in recent years," adding that he believed the company's "best days lie ahead."