Shares of Tata Group’s retail powerhouse, Trent Limited, witnessed a positive momentum on Thursday, February 5, following the announcement of its third-quarter earnings for the financial year 2025-26. The Trent share price rose by 1% to reach ₹4,052 on the National Stock Exchange (NSE) during early trade. Investors reacted favorably to a steady increase in consolidated net profit, which reached ₹510.11 crore, supported by robust revenue growth and aggressive store expansions across its fashion brands, Westside and Zudio.
Trent Q3 FY26 Results: Profit and Revenue Breakdown
Trent Limited reported a consolidated profit after tax (PAT) of ₹510.11 crore for the quarter ended December 2025. This represents a 2.73% growth compared to the ₹496.54 crore profit recorded in the same period last year. While the profit growth appears modest, it remains significant considering the current retail landscape and internal adjustments.
The company’s consolidated revenue from operations saw a more robust jump. It climbed 14.78% to reach ₹5,345.06 crore in Q3 FY26, up from ₹4,656.56 crore in the year-ago period. This double-digit revenue growth highlights the increasing consumer preference for Trent’s retail formats.
Impact of New Labour Codes on Earnings
Despite the revenue surge, the bottom line was slightly impacted by a one-time financial adjustment. Trent reported an exceptional net loss of ₹26.11 crore during the quarter. This specific hit was attributed to the implementation of new Labour Codes, which required the company to realign certain employee benefit provisions. Excluding this item, the operational performance remained strong.
Operating Margins and Operational Efficiency
Operational efficiency showed improvement during the December quarter. The operating EBIT (Earnings Before Interest and Taxes) margin for Q3 FY26 stood at 13.8%, compared to 13.2% in Q3 FY25. The company noted that the gross margin profiles for its primary brands, Westside and Zudio, have remained stable despite fluctuating raw material costs and competitive pricing strategies.
Aggressive Expansion: The Zudio and Westside Footprint
Trent’s growth story continues to be driven by its physical store expansion. During the third quarter, the company opened 17 new Westside stores and 48 Zudio outlets, including an international presence with one new store in the UAE.
As of December 31, 2025, Trent’s total retail footprint has crossed a massive 15 million square feet. The portfolio now includes:
- Zudio: 854 stores (including 4 in the UAE)
- Westside: 278 stores
- Other Concepts: 32 stores (including Star and Misbu)
This aggressive “large-box” format strategy has allowed the company to maintain a presence in 274 cities, capturing both metro and Tier-II/III markets effectively.
Management Outlook on Consumer Sentiment
Commenting on the performance, Noel N. Tata, Chairman of Trent Limited, expressed confidence in the company’s medium-term outlook. He noted that the fashion segment registered “category-leading growth” during the quarter.
“The customer sentiment is gradually improving,” Noel Tata stated. He emphasized that the company’s focus remains on building a “sizeable pure-play direct-to-customer business.” The strategy involves enhancing the in-store experience and ensuring the product portfolio remains relevant to a diverse Indian audience.
Market Reaction and Trent Share Price Performance
Following the results, the Trent share price gained traction, pushing the company’s market capitalization to approximately ₹1,44,043 crore. Analysts suggest that the stability in gross margins and the rapid scale-up of Zudio continue to be the primary valuation drivers for the stock.
Investors are closely watching how the company navigates the evolving D2C (Direct-to-Consumer) space while maintaining the profitability of its brick-and-mortar legacy.
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