Trent shares zoom 7% after Q2 results, brokerages divided on outlook, price targets

Trent shares surged by 7 percent on Friday following the Tata Group retailer's announcement of a 25 percent year-on-year increase in consolidated net profit to ₹468 crore in the July–September 2026 quarter. This growth was attributed to the expansion of the Zudio fashion chain, strong growth in Star grocery revenues, and improved operating margins. By 9:53 am, Trent's stock was trading at ₹3,033.30 on the NSE, having risen to ₹3,060.

Brokerages were divided on Trent's outlook. Bernstein retained its "outperform" rating and set a target price of ₹3,500, citing margin improvements but warning of slower store additions and declining revenue productivity. HSBC maintained its "buy" rating and elevated its target price to ₹3,480 from ₹3,390, expecting growth momentum to persist in the second half of FY27, driven by Westside and Zudio expansions.

HSBC also raised its FY27 EBITDA estimate by 7 percent and FY28–29 estimates by 2–3 percent, attributing the growth to Westside and anticipating steady annual store-opening rates, with a focus on Tier II and peripheral markets.

Jefferies maintained its "hold" rating but cut the target price to ₹3,300 from ₹3,435, retaining the guidance for 200–250 Zudio stores and 50 Westside stores in FY27. The brokerage highlighted online channels, emerging categories, and expansion into smaller cities as growth drivers but cautioned about input-cost inflation and competitive pressures.

Citi lowered its rating to "sell" and reduced the target price to ₹2,815 from ₹2,950, anticipating stable store-opening rates but lowering FY27 and FY28 earnings per share estimates by 6 percent and 3 percent, respectively, due to valuation concerns and input-cost inflation.

Additionally, Noel N Tata announced his resignation as chairman after nearly three decades with the company.