Trent Ltd, the retail arm of the Tata Group, reported a steady performance in the Q3FY26, supported by strong festive demand and rapid store expansion across formats. The company delivered healthy revenue growth during the quarter, although profit growth remained moderate due to higher costs and continued investments in scaling the business.
For the quarter ended December 31, 2025, Trent’s revenue from operations rose nearly 15% year-on-year to ₹5,345 crore, compared with ₹4,657 crore in the same period last year. This marked the highest quarterly revenue in the company’s history and reflected strong consumer demand, especially across its fashion-led formats such as Westside and Zudio.
Net profit for the quarter increased modestly by around 2.7% year-on-year to ₹510 crore. While the bottom line continued to grow, the pace was slower than revenue growth, indicating some pressure from operating expenses and strategic investments made during the quarter. Profit growth was also impacted by an exceptional charge related to the implementation of new labour codes in India.
Operational performance, however, showed clear improvement. EBITDA for the quarter jumped nearly 20% year-on-year to ₹837 crore, supported by better cost absorption, improved product mix, and scale benefits from a larger store network. Operating margins improved sequentially, reflecting stronger execution and disciplined cost control despite an inflationary environment.
Store expansion remained a key growth driver for Trent during the quarter. The company added 17 new Westside stores and 48 Zudio outlets in Q3 FY26, strengthening its footprint across urban and semi-urban markets. As of December 2025, Trent operated 278 Westside stores and 854 Zudio stores, including a small international presence in the UAE. This aggressive expansion strategy continues to support revenue growth and long-term market share gains.
Commenting on the performance, Chairman Noel N Tata stated that customer sentiment is gradually improving and demand trends remain encouraging. He highlighted that the company remains focused on expanding its portfolio, improving product offerings, and enhancing in-store customer experience to drive sustainable growth over the medium term.
Despite the strong operational quarter, valuation remains a key concern for investors. Trent’s stock continues to trade at premium valuation multiples compared to the broader retail sector, leaving limited room for error. Any slowdown in growth or pressure on margins could lead to valuation correction, even if business fundamentals remain healthy.
Overall, Trent delivered a solid Q3 FY26 with record revenue, improving operating performance, and continued store expansion. While the company’s long-term growth story remains intact, investors may stay cautious in the near term due to elevated valuations and relatively slower profit growth.