Trent Ltd shares rose 2.5% intraday, marking a five-day winning streak as the stock recovers from its June lows. Analysts at Bernstein now point to Westside's expansion as a key growth pillar for the retailer alongside the Zudio brand.
What Happened
Trent Ltd shares saw sustained buying interest on Friday, climbing 2.5% to hit an intraday high of ₹3,399.70 on the NSE. This movement marks the fifth consecutive day of gains for the Tata Group retail stock. The company has seen a sharp turnaround, rising 27% since touching a 52-week low of ₹2,680 on June 11, 2026. While the broader Nifty 50 index has faced a 6.8% decline year-to-date, Trent has recorded a gain of 17.5% over the same period, recovering from a difficult previous year where the stock dropped by 18.5%.
Why The Westside Focus Matters
Investors have historically focused heavily on the rapid expansion of Zudio, Trent’s value-fashion format. However, current management guidance shifts some attention back to the Westside department store chain. Bernstein analysts suggest that the company’s plan to open approximately 50 new Westside stores each year is sustainable for the next four to five years. If successful, this would expand the total Westside store count to between 500 and 550. This strategy focuses on increasing presence in India's top 100 cities through densification, rather than the rapid, widespread expansion seen with Zudio.
Profitability and Business Drivers
Westside currently accounts for roughly 40% of Trent’s total retail space and revenue. A key factor for investors to consider is the difference in profit margins between the company's brands. Estimates indicate that Westside generates gross margins around 55%, which is significantly higher than the 40% gross margins typically associated with the Zudio format. Based on revised store addition forecasts and improved operational metrics, analysts have slightly increased their Profit After Tax estimates for the company.
Competitive Standing
In the competitive landscape of Indian retail, Westside has shown consistent growth compared to peers such as Shoppers Stop, Lifestyle, and Pantaloons. Some of these competitors have faced financial constraints, which has helped Westside maintain or gain market share. Analysts note that store rationalization efforts appear to have concluded, leaving the company in a position to pursue steady growth in its established department store format.
What Investors Should Track
While the current outlook focuses on store additions, investors should monitor whether the company can maintain these expansion targets without impacting its overall debt position or cash flow. The ability to execute the planned 50 store openings per year for Westside remains a primary monitorable. Additionally, because margins are higher for Westside, the actual mix of revenue between the high-growth, lower-margin Zudio format and the more established, higher-margin Westside format will be a key factor in future profit performance.