The shares of one of India’s leading retail chains fell up to 9% after it informed the exchanges that Q1FY26 revenue growth is expected to slow to around 20%, well below its historical five-year CAGR of 35%.
With a market capitalization of Rs 2,04,969 Crores, the share price of Trent Ltd was trading almost 9% down to hit an intraday low of Rs 5653.00 per share from its previous closing price of Rs 6186.40 per share.
Trent Ltd, the retail arm of the Tata Group, opened 9% lower on Friday, 4 July, after the company indicated a slowdown in growth at its Annual General Meeting. It stated that revenue growth for Q1 FY26 is expected to be around 20%, significantly lower than its five-year CAGR of 35%.
In its exchange filing, the company confirmed standalone revenue of Rs 5,061 crore, up 20% year-on-year. As of 30 June 2025, Trent’s store portfolio stood at 248 Westside, 766 Zudio (including 2 in the UAE), and 29 other lifestyle stores. During the quarter, it opened 1 new Westside and 11 new Zudio stores. LINK
Management maintained that a 25% CAGR remains achievable in the long run and said it is not overly concerned about rising competition, highlighting that the sector has room for multiple players.
Following the update, brokerage firm Nuvama downgraded the stock from Buy to Hold, cutting FY26 and FY27 revenue growth estimates by 5–6% and EBITDA projections by 9–12%. It also reduced its price target from Rs 6,627 to Rs 5,884.
On the other hand, Morgan Stanley reiterated its Overweight stance, with a price target of Rs 6,359, stating that the company could still deliver a 25–30% CAGR over the next five years.
Trent Ltd, a Tata Group company, is a leading player in India’s branded retail space, offering a wide range of products including apparel, footwear, accessories, toys, food, and grocery items. Its key fashion formats include Westside, Zudio, and Samoh, while it operates in the food and grocery segment under the Star banner.
As of June 2025, Trent has a strong and growing presence with 248 Westside stores across 86 cities and 765 Zudio stores in 235 cities, including two in the UAE. The company continues to expand across Tier 1, 2, and 3 markets, delivering quality and affordability to a diverse customer base.
The company reported a revenue of Rs 17,135 crore in FY25, up by 38.5 percent from its FY24 revenue of Rs 12,375 crore. Coming to its profitability, the company reported a net profit rise of 3.8 percent to Rs 1,534 crore in FY25 from Rs 1,477 crore in FY24. The stock delivered an ROE and ROCE of 30.1 percent and 30.7 percent, respectively.
Written By Rohan Pandey
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