Shares of Tata Group's retail arm, Trent Ltd., have experienced a significant decline, falling 31% from their 52-week high of Rs 6,259 recorded on June 30, 2025. This downturn in Trent's stock performance comes despite the company reporting robust financial results for the fourth quarter of fiscal year 2026.
Strong Q4 FY26 Financial Performance
Trent announced a consolidated net profit of Rs 413.1 crore for Q4 FY26, marking a substantial 32.57% year-on-year increase from Rs 311.6 crore in the corresponding period last year. Revenue from operations also saw a healthy rise, reaching Rs 5,027.99 crore, up 19.23% from Rs 4,216.94 crore in Q4 FY25.
Operationally, the company demonstrated strong growth, with EBITDA (earnings before interest, tax, depreciation, and amortisation) surging by 44% year-on-year to Rs 5,028 crore for the January-March quarter of FY26. The operating EBIT margin improved to 11.5% in Q4 FY26, compared to 9.7% in the March quarter of FY25.
Market Dynamics and Analyst Outlook on Trent Stock Performance
Despite these impressive financial figures, the recent drop in Trent's share price is largely attributed to high valuations and broader macroeconomic headwinds impacting retail sector growth. The stock, which hit a 52-week low of Rs 3,276 on March 30, 2026, closed at Rs 4,299.10 in the latest trading session, showing a relatively flat movement against its previous close.
Brokerage firm MOSL has maintained a positive outlook on Trent, setting a price target of Rs 5,250. This target suggests a potential 24% upside from the current market price. MOSL noted a recovery in growth during Q4 FY26, following several quarters of deceleration. They anticipate a gradual improvement in like-for-like (LFL) sales as the impact of cannibalized stores eases.
Expansion Plans and Future Projections
MOSL's projections incorporate a steady expansion strategy for Trent, anticipating the addition of 35-40 Westside stores annually. This expansion plan is expected to result in a 17% area CAGR (Compound Annual Growth Rate) over FY26-28E. Consequently, the brokerage forecasts a 21% standalone revenue CAGR for Trent over the same period, alongside a 22% CAGR in pre-IND AS EBITDA and an 11% CAGR in adjusted PAT.
Currently, the stock's Relative Strength Index (RSI) stands at 61, indicating it is neither oversold nor overbought. Furthermore, Trent's shares are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, suggesting underlying strength despite the recent fall from its peak.