Trent Shares Crash to 21-Month Low on Weak Growth

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AuthorVihaan Mehta|Published at:
Trent Shares Crash to 21-Month Low on Weak Growth
Overview

Trent's stock plummeted 6% to a 21-month low on Tuesday, breaching ₹3,830.55. The Tata group retailer's Q3FY26 revenue growth of 17% missed market expectations of 22%, sparking investor concerns. The stock has now fallen 13.5% in just six trading days.

Trent Shares Tumble to 21-Month Low

Trent shares experienced a sharp decline, hitting a 21-month low of ₹3,830.55 on Tuesday. The stock tanked 6% in intra-day trade on the BSE, driven by concerns over the retail company's growth trajectory. This marks the lowest level for the Tata group firm since April 2024.

Revenue Miss Sparks Sell-off

The downturn follows Trent's recently released business update for the October-December 2025 quarter (Q3FY26). The company reported a 17% year-on-year revenue growth, reaching ₹5,220 crore (net of GST). However, this figure fell short of market expectations, which had anticipated growth closer to 22%. This miss has weighed heavily on investor sentiment.

Stock Correction Deepens

The stock is now down 13.5% in the past six trading days alone, extending a significant correction from its 52-week high of ₹6,525 reached on January 13, 2025. The recent decline brings the total fall from its peak to approximately 41%.

Analyst Views Mixed

Brokerage firms have reacted to the subdued performance. ICICI Securities noted that the Q3 revenue growth was in line with the first half but cited the absence of a festive surprise or GST-related sales boost. The firm anticipates further estimate downgrades due to the weak Q3 update. Conversely, HDFC Securities suggested that post-correction, the risk-reward ratio might become favorable. They emphasized the need to evaluate operational key performance indicators like same-store sales growth (SSSG) and store expansion strategy, highlighting the significant addition of Zudio stores and strategic catchment additions as potential future levers.

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