Revenue from operations in Q4 stood at Rs 5,028 crore, up 19% compared to Rs 4,216 crore in the corresponding quarter of the previous financial year.
The company’s operating earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter under review stood at Rs 653 crore, marking a 44% increase. For FY26, EBITDA rose 25% to Rs 2,702 crore. EBITDA margins expanded to 18.4% versus expectations of 16.8%.
Trent share price: Should you buy, sell or hold?
Goldman Sachs has maintained a neutral rating on Trent, while raising its target price to Rs 4,330 from Rs 4,150, in line with the current market price. The brokerage highlighted a strong margin beat in Q4, driven by expansion in gross margins. However, it noted that consumer demand is beginning to show signs of moderation amid ongoing macroeconomic uncertainty. It also flagged emerging risks from input cost inflation. Despite the strong quarterly performance, estimates have been only marginally revised. The stock is currently valued at around 62x FY28 estimated earnings.
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Morgan Stanley has maintained an overweight rating on Trent with a target price of Rs 4,835 (9% upside). The brokerage highlighted a strong margin beat, with both EBITDA and EBIT coming in ahead of estimates. Like-for-like growth improved to the low single-digit range, while store expansion remained robust, particularly in Tier 2 and Tier 3 markets. It noted that consumer demand remains stable, although macroeconomic uncertainty continues to persist. The planned fund raise is expected to support future expansion and investments in the supply chain.
Motilal Oswal has maintained a buy rating on Trent and raised its target price to Rs 5,250, implying an upside of about 18%. Analysts said channel checks suggest that the impact of cannibalisation has now begun to ease. It also highlighted that recent store additions under Zudio are largely focused on entering new markets, which may start with lower productivity but are unlikely to further affect sales at existing stores. Despite relatively softer growth, Trent has maintained strong cost discipline, supporting healthy profitability in FY26. Going forward, the brokerage believes margin expansion will largely depend on a recovery in like-for-like growth.
Elara Capital has maintained an accumulate rating on Trent with a target price of Rs 4,800. The brokerage highlighted strong revenue growth, supported by continued store expansion, while like-for-like growth improved to the low single-digit range. Margins remained supported by operating leverage despite ongoing inflationary pressures. It also noted that expansion into Tier 2 and Tier 3 markets is providing better growth visibility. The valuation is based on a sum-of-the-parts approach, using EV/EBITDA and EV/Sales metrics.
HDFC Securities has downgraded Trent shares to add and revised its target price to Rs 4,500. The brokerage highlighted strong revenue growth of around 20% YoY, driven largely by store additions, although like-for-like growth remained subdued. Margins exceeded expectations with expansion in both gross margin and EBIT. However, consumer sentiment remains cautious amid ongoing geopolitical and macroeconomic uncertainties. Limited upside after the recent sharp rally has led to the downgrade. The stock is valued at around 57x FY28 estimated standalone earnings.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)