Trent Ltd Q2 FY26: Tata’s Fashion Child Hits ₹4,818 Cr Sales, ₹377 Cr Profit, and Still Rocking 765 Zudio Stores Like It’s a Flash Sale
1. At a Glance
Tata Group’s retail rockstar Trent Ltd (NSE: TRENT) is not just selling clothes—it’s selling FOMO. With a market cap of ₹1.64 lakh crore, this desi fashion powerhouse just dropped another blockbuster quarter: Q2 FY26 consolidated revenue of ₹4,818 crore and PAT of ₹377 crore. That’s a YoY growth of 15.9% in sales and 11.2% in profit, proving Indians will cut chai budgets but never skip a Zudio sale.
The stock currently trades at ₹4,627, down 13% in 3 months, but don’t cry for Tata’s wallet yet. The company’s P/E of 101 screams “premium”, ROE of 30.4% whispers “efficiency”, and EV/EBITDA of 49.1 laughs in the face of valuation sanity. From 1,043 stores across India to Dubai, Trent is turning retail space into an empire.
Imagine Zara and Reliance Trends had a baby—it would be Trent’s portfolio: Westside, Zudio, Utsa, Samoh, Star Hypermarket, and now, the spicy new Burnt Toast brand for budget fashionistas.
2. Introduction
If retail were cricket, Trent would be Virat Kohli with a Zara haircut. A Tata Group company with 37% promoter holding, it started as a modest fashion venture but has become India’s retail juggernaut with more outlets than most kirana chains.
Remember when buying branded clothes was a “once a year” event? Trent changed that. Zudio made affordable chic mainstream, Westside became the go-to mall destination, and Star started selling everything from sabzi to shampoo. While peers like ABFRL are wrestling with debt and fashion fatigue, Trent’s stores are printing money.
The company has been on a relentless expansion spree: adding 295 stores in FY25, including its first two in Dubai. That’s one store every 1.2 days. Someone give their expansion team caffeine detox.
With 17% operating margins, a 30% ROCE, and the blessings of Tata Group discipline, Trent is the chosen retail child that the market just can’t ignore—even at triple-digit P/E.
3. Business Model – WTF Do They Even Do?
Trent runs India’s most stylish supermarket of brands. Each one has a personality more dramatic than a Bollywood award show.
Westside (248 stores) – The flagship fashion format. Offers apparel, beauty, and home décor under exclusive labels like Nuon, LOV, and Studiofit. Think “mall luxury” without emptying your wallet.
Zudio (765 stores) – The millennial magnet. Fashion under ₹999, and a new store opens faster than your Amazon delivery. It’s the retail equivalent of fast fashion with Indian jugaad.
Utsa (20 stores) – For ethnic queens who love kurtas with attitude.
Samoh (5 stores) – Launched in 2023, targeting premium ethnic wear for weddings and special occasions. A subtle flex against Manyavar.
Star (78 stores) – Trent’s grocery arm with its own branded FMCG and food products now making up 70% of Star’s revenues.
Burnt Toast – The latest drop from Trent’s kitchen—a “vibrant and budget-conscious” fashion brand that sounds like your breakfast but dresses you better.
Subsidiaries like Booker India, Fiora Hypermarket, and Fiora Online (StarQuik) handle everything from wholesale to e-commerce. Associate ventures like Inditex Trent (Zara) and Massimo Dutti India add global flair (and profits).
The result? A diversified retail monster that thrives on Tata’s discipline, customer obsession, and some seriously aesthetic stores.
4. Financials Overview
Metric (₹ Cr)
Q2 FY26 (Latest)
Q2 FY25 (YoY)
Q1 FY26 (QoQ)
YoY %
QoQ %
Revenue
4,818
4,157
4,883
+15.9%
-1.3%
EBITDA
816
646
848
+26.3%
-3.8%
PAT
377
335
425
+12.5%
-11.3%
EPS (₹)**
10.6
9.5
12.1
+11.6%
-12.4%
Annualised EPS = ₹42.4, implying a P/E of 109x. “P/E not meaningful” would be an understatement; it’s practically a lifestyle statement.
Commentary: The company’s OPM of 17% shows it’s managing inflation better than your local sabziwala. Despite expansion costs and Zudio’s aggressive rollouts, profitability remains stable.
5. Valuation Discussion – Fair Value Range (Educational Purpose Only)
Let’s bring some sanity (and sarcasm) to Trent’s sky-high valuations.
Method 1: P/E Method
EPS (Annualised): ₹42.4
Fair P/E Range (based on retail peers): 60x–80x
Fair Value Range = ₹2,540 – ₹3,392 per share
Method 2: EV/EBITDA
EV = ₹1,66,648 Cr
EBITDA (FY25): ₹3,162 Cr
EV/EBITDA = 52.7x (actual) If sector median is 30x–35x → Fair EV = ₹94,860 – ₹1,10,670 Cr Adjusting for debt and cash gives Fair Price ≈ ₹2,200 – ₹3,000 per share.
Method 3: Simplified DCF Assume 20% growth for 5 years, 10% terminal, 10% discount rate. → Fair Value ≈ ₹3,200 – ₹3,600/share
🟡 Educational Fair Value Range: ₹2,200 – ₹3,600 per share Disclaimer: This range is purely for educational analysis and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Burnt Toast launch: Because Zudio wasn’t enough, Trent dropped another fashion bomb. Target audience? Gen Zs who say “bro” more than “salary”.
