Key Takeaways:
- Strong Financial Growth: Net profit jumped 33% to ₹413 crore, while revenue rose nearly 20% to cross the ₹5,000 crore mark.
- Rapid Physical Expansion: Trent added 132 new stores this quarter, significantly increasing its reach in 47 new cities and the UAE.
- Shareholder Rewards: The board approved a 1:2 bonus issue and a final dividend of ₹6 per share following the strong performance.
Trent Limited reports a 33% year-over-year rise in Q4 net profit to ₹413 crore on strong store expansion and steady demand, announces dividend and bonus shares amid cautious consumer spending and macro uncertainty.
Trent, the Tata Group’s retail arm operating Westside and Zudio, reported a consolidated net profit of ₹413.1 crore for the fourth quarter of FY26 on April 22, up from ₹311.6 crore a year earlier. Revenue from operations rose 19.23% to ₹5,027.99 crore, according to a regulatory filing.
The company said consumer sentiment remained stable early in the quarter but softened later due to geopolitical tensions and macroeconomic concerns. It noted cautious discretionary spending amid cost-of-living pressures.
Store Expansion Drives Growth Momentum
Trent Limited expanded aggressively during the quarter, opening 23 Westside and 109 Zudio stores, including two in the UAE, and entering 47 new cities. As of March 31, the company operated 300 Westside and 963 Zudio stores, along with 23 outlets under other formats.
Operating performance strengthened, with EBITDA rising 44% year over year. The company reported an operating EBIT margin of 11.5%, compared with 9.7% in the same quarter last year.
Emerging categories such as beauty, personal care, innerwear and footwear contributed more than 21% of total revenue. Online sales grew 25% and accounted for over 6% of Westside’s revenue.
“The demand environment remains structurally strong, though near-term disruptions linked to global events could impact consumption patterns,” the company said in its filing.
Dividend, Bonus Issue Approved
Trent’s board recommended a final dividend of ₹6 per equity share, subject to shareholder approval. The payout is expected after the company’s 74th annual general meeting.
The board also approved a bonus issue in the ratio of 1:2, granting one bonus share for every two shares held. The record date for eligibility will be announced later.
Shares of Trent Limited closed about 1% higher at ₹4,434.50 on the National Stock Exchange ahead of the earnings announcement. The company’s market capitalisation stood at ₹1.57 lakh crore as of April 22.
Chairman Sees Recovery Ahead
Noel Tata, chairman of Trent, said the company delivered a resilient performance despite global and macroeconomic challenges.
“We believe consumer sentiment will recover further in the coming months once the geopolitical environment settles down,” Tata said.
He added that evolving consumer aspirations and access to diverse offerings continue to support long-term growth. “We remain committed to building a portfolio of brands that addresses the significant market opportunity in the lifestyle space,” he said.
Tata noted that Trent’s Star grocery business is gaining traction, with private brands contributing more than 73% of revenue. However, store expansion in that segment has been slower than expected.
“We are looking to accelerate this agenda in the coming years,” he said, adding that the company plans targeted investments in retail real estate to expand reach.
Despite short-term caution in spending, Trent said it remains optimistic about long-term demand, citing strong fundamentals and continued urban consumption growth.
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