Trent Share Price Target at Rs 3,600: ICICI Securities
ICICI Securities has a BUY rating on Trent with a 12-month target price of Rs 3,600, about 18-19% above the current market price of Rs 3,040. The brokerage's retail research desk said the Tata Group retailer delivered a strong September quarter. Standalone revenue rose 22.5% to Rs 5,787.6 crore, and like-for-like growth improved to mid-single digits from low-single digits. Gross margin widened 121 basis points to 44.5%, and EBITDA climbed 29.6%. Reported profit grew only 8.6% because of a one-off gain in the base. The brokerage cut its earnings estimates by about 6% on lower other income but kept its call.
ICICI Securities · Q2FY27 Result Update · October 30, 2026
Trent: Store Sales Find a Better Fit as ICICI Securities Keeps BUY with Rs 3,600 Target
BUYLFL growth: mid-single digitsEPS estimates cut ~6%
In the shop window
CMP
Rs 3,040
Target
Rs 3,600
Upside
~18-19%
52-week range
Rs 2,184-3,400
Market cap
Rs 1,62,093 cr
The Quarter at the Till
Trent, which runs Westside, the value-fashion chain Zudio and a grocery joint venture under the Star banner, posted standalone revenue of Rs 5,787.6 crore, up 22.5% from a year earlier. Growth came from new stores and better same-store sales, even though the festive season moved from the second quarter into the third this year.
Sourcing gains lifted gross margin despite elevated inflation. EBITDA rose 29.6% to Rs 1,053.7 crore. Reported profit rose a more modest 8.6% to Rs 489.7 crore, because the year-earlier quarter included a Rs 96 crore gain on an asset sale. Excluding that gain, the brokerage estimates profit growth of about 30%.
Same-Store Sales Move Up a Size
The headline improvement was in like-for-like (LFL) growth, which rose to mid-single digits after four to five quarters stuck in low-single digits. Management said consumer sentiment stayed broadly positive and demand improved across brands, with non-metro locations also doing better. ICICI Securities expects LFL growth to strengthen in the third quarter with the festive and wedding season, and to reach high-single digits in the coming years as stores mature.
Low-single digits
Previous four to five quarters
Mid-single digits
Q2FY27, now on the rack
High-single digits
Brokerage view for coming years
A Wardrobe of Formats, 1,342 Fashion Stores Strong
Trent operates in 339 cities, including the UAE, across about 1.85 crore sq ft of retail space. During the quarter it opened 10 Westside and 19 Zudio stores and consolidated two Zudio outlets, a net gain of 27. About 85% of new Zudio stores were in peripheral growth markets or Tier II cities and smaller towns. The brokerage expects more than 1,500 stores by the end of FY27 and sees store additions as a main driver of double-digit revenue growth.
Westside
311
stores; online sales grew 20% in H1 and make up about 6% of Westside revenue
Zudio
999
stores, including 7 in the UAE; the main engine of new openings
Other concepts
32
stores across other lifestyle formats
Star Bazaar
87
grocery stores, about 15.2 lakh sq ft; Q2 revenue Rs 1,006 crore, up 21.7%
Q2FY27 store additions
+10
Westside opened
+19
Zudio opened
-2
Zudio consolidated
+27
Net additions
Margins Cut from Better Cloth
Sourcing over inflation: Management said inflation stayed high because of geopolitical uncertainty, interest rates and supply disruptions. Even so, wider supplier engagement lifted first-half gross margin 134 basis points to 45.6%, and EBITDA margin rose 153 basis points to 18.9%. First-half EBITDA grew 31.1% to Rs 2,164.2 crore on revenue of Rs 11,453.9 crore.
Store maturity: As the large crop of recently opened stores matures, higher sales per store should spread fixed costs more thinly. ICICI Securities expects EBITDA margin to widen by 100-120 basis points between FY26 and FY29E.
Fabric bolts: margin rolls (scale 0-50%)
Gross margin
Q2FY26 43.3%
Q2FY27 44.5%
H1FY27 45.6%
EBITDA margin
Q2FY26 17.2%
Q2FY27 18.2%
H1FY27 18.9%
New aisles: Footwear, beauty and personal care, and innerwear made up 21% of revenue in the quarter, a sign the company is broadening beyond apparel. The online channel, helped by the Tata Neu platform, is growing profitably.
Emerging categories as a share of Q2FY27 revenue.
Estimates Trimmed at the Bottom Line
ICICI Securities left revenue and EBITDA forecasts broadly unchanged but cut profit estimates by about 6% for FY27E and FY28E because of lower-than-expected other income, which fell 71% in the quarter. FY27E profit growth is now only about 8%, before a projected 33% jump in FY28E.
How the Rs 3,600 Target Is Tailored
Sum-of-the-parts wardrobe
Standalone business: avg FY28-29E EBITDA Rs 6,279 cr x 30
Rs 1,88,371 cr
Star Bazaar 50%: sales Rs 539.5 cr x 4
Rs 1,079 cr
Investment in Zara
Rs 157 cr
Plus net cash, FY29E (cash Rs 3,912 cr less debt Rs 606 cr)
+ Rs 3,306 cr
Equity value Rs 1,92,913 cr / 53.3 crore shares = about Rs 3,619
Target price Rs 3,600
Target for investors: ICICI Securities rates Trent a BUY with a 12-month target of Rs 3,600, implying about 18-19% upside from Rs 3,040. The bulk of the value rests on the standalone fashion business at 30 times average FY28-29E EBITDA.
The stock trades at about 75.5 times FY27E earnings and 56.8 times FY28E, so the case depends on LFL growth continuing to improve and new stores maturing on schedule. The brokerage expects revenue to compound at 21% and EBITDA at 23.2% a year over FY26-29E. Domestic institutions raised their stake to 23.3% in September from 19.8% in December 2025, while foreign holdings slipped to 15.3%.
Risks on the Markdown Rack
1
Discretionary slowdown: Weaker consumer spending would hit the LFL recovery the thesis relies on.
2
Fast-fashion competition: Large domestic and international brands could pressure Zudio's value pricing.
NEWS
Valuation (TopNews addition): At 75.5 times FY27E earnings, any stumble in store productivity could compress the multiple.
Editor's Note
TopNews found these inconsistencies in the source report:
Gross margin gain: The performance highlights say Q2 gross margin rose 112 basis points, while page one and the results table say 121. The table figures (Rs 2,576.8 crore on Rs 5,787.6 crore, against 43.3% a year earlier) support 121, which this article uses.
Debt: The market-data table lists FY26 debt as Rs 948 crore, while the balance sheet shows Rs 906 crore.
Equity capital: The balance sheet shows FY26 equity capital of Rs 35.6 crore, but the market data, FY26 EPS and later years all use Rs 53.3 crore (53.3 crore shares of Rs 1).
Upside: The report prints 19% upside, but Rs 3,600 against Rs 3,040 works out to about 18.4%.
Sources
ICICI Securities (ICICI Direct Retail Research), Trent Ltd. Q2FY27 Result Update, Oct. 30, 2026. Research analysts: Kaustubh Pawaskar, Abhishek Shankar and Sonal Rajpal. Company disclosures as cited in the report. The size ladder, store-format labels, store-addition tiles, margin bars and SoTP wardrobe redraw the report's own printed figures. The upside cross-check and the valuation risk are TopNews additions.
Disclaimer: This TopNews Stock Report is for information only and is not investment advice. Investments in the securities market are subject to market risks. Read all related documents carefully and consult a registered adviser before investing.
