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Trent reported its Q1FY27 business update

ICICIdirect Research 07 Jul 2026 DISCLAIMER

News: Trent reported its Q1FY27 business update. Its standalone revenues grew by 19% YoY to Rs.5,666cr. Revenue growth was in-line with our expectation of 20% during the quarter. During the quarter the company added just 1 store of Westside and 19 stores of Zudio. This is the company’s lowest store addition over the past 3 quarters. As of June, 30th 2026, Westside has 301 stores while Zudio has 982 stores (incl. 7 stores in UAE). Apart from these the company has 29 stores across other lifestyle concepts.

View: Trent reported revenue growth of 19% largely in-line with our expectation of 20% growth (lower than street expectation of 22-23%) during the quarter. Large part of the revenue growth is driven by stores added in past two to three quarters. Over the last 3 quarter, Q4FY26 witnessed highest addition of 131 stores (Zudio and Westside) with Q2FY26 and Q3FY26 adding 53 and 65 stores each. We expect LFL growth to be flat or in low single digit in Q1FY27. We expect the revenue growth to remain in high teens to low twenties in the near term. However we expect the growth rate to improve to mid-twenties once large number stores achieve certain maturity aiding revenue per sq,ft to improve in the coming years. Management expects LFL growth rate to return to low double digit in the medium to long run, while revenues are expected to grow at CAGR of 25% over the long run.

Impact: Positive

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