Synopsis: Trent Ltd, which was once a hot stock on the Dalal Street because of its fast store expansion and performance of Zudio stores, is now struggling to give gains to its investors as it is struggling with numerous concerns
From a peak of 8,345 per share, Trent’s share are now trading at just Rs 4,292, a massive discount of ~50 percent from its peak. It made a 52-week low of Rs 4,235.80 on 25 November 2025. But what causing this downfall? In this article, we will try to understand some of the reasons behind this downfall.
With a market capitalisation of Rs 1,52,584 crore, the shares of Trent Ltd are currently trading at Rs 4,292.25 per share, up 1 percent from its previous day’s closing price of Rs 4,244.30 per share. Over the past five years, the stock has delivered a robust return of 496 percent, outperforming NIFTY 50’s return of 102 percent.
What Went Wrong?
Sharp Deceleration in Revenue Growth: Trent’s YoY sales growth has been declining gradually throughout the quarters, moving from more than 65 percent in the end of 2022 to just 15-16 percent by the end of 2025, thus showing a very obvious trend of the company losing its growth speed. The same trend can be observed in its bottom-line performance as well.
The gradual getting smaller of growth after several quarters of robust growth has caused the company’s scaling speed to be questioned and is the main factor why the stock went down to its 52-week low level.
Intensified Competition in Value Fashion: Value competition in fashion has become highly competitive, which is important to Trent. Reliance Retail is growing quickly with Trends and Azorte, mainly in Tier-2 and Tier-3 cities, where Zudio has a strong base. Local players like Vishal, V2 Retail, VMart, and several D2C fashion brands are also providing better quality at highly competitive prices, thus giving consumers a lot more options.
At the same time, Aditya Birla Fashion & Retail (ABFRL) is boosting its value segment with the growing StyleUp format and new Gen-Z–focused brand (OWND), thus directly targeting the same customer base as Zudio. With more brands competing for the same wallet share, Trent’s growth momentum has been under pressure, which is a major factor behind the recent decline in the stock.
Valuation Comfort: Trent’s valuations were not keeping along with its profits anymore. In fact, its P/E ratio over the last five years has been drastically brought down, from a staggering 527x in January 2022 to roughly 94x in November 2025. The abrupt derating is indicative of the move of the market from very optimistic growth scenarios to a more conservative one; thus, the stock is getting additional downward forces.
Multiple Brokerages Downgrade: Various brokerages, such as CITI, Jefferies, and Goldman Sachs, have significantly reduced the stock rating, citing slow revenue trends, weakened demand, and increased competition in the value fashion segment. Analysts acknowledge that Trent’s recent automation moves have provided some relief to margin pressures.
However, they also caution that these benefits may not last very long due to the escalation of competitive intensity. On the other hand, Jefferies cited that its revenue per sq. ft (key metric) also saw a notable drop in this quarter, raising the woes of the company.
Q2 Highlights
Trent reported a core revenue of Rs 4,818 crore in Q2 FY26, a growth of 16 percent as compared to Rs 4,157 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 1.3 percent from Rs 4,883 crore.
Regarding its profitability, it reported a net profit of Rs 373 crore in Q2 FY26, a growth of 11 percent as compared to Rs 335 crore in Q2 FY25. However, on a quarter-on-quarter basis, it recorded a decline of 12 percent from Rs 425 crore.
Trent Limited, part of the Tata Group, runs popular retail formats like Westside, Zudio, Star, and Landmark all over India. The company is all about fashion, lifestyle, and grocery, making sure to meet the varied needs of its customers. With a reputation for offering stylish yet affordable products, Trent has been on a fast track of growth, expanding through both its own stores and franchises. It has a total of 1,101 stores across 251 cities, including 2 cities in the UAE.
Written by Satyajeet Mukherjee
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