Trent Q1 profit rises 26% on strong fashion demand; crosses 1,300-store milestone

Tata Group retailer Trent Ltd on Thursday reported a 26% year-on-year rise in standalone net profit to ₹532 crore for the quarter ended June 30, 2026, driven by continued expansion of its fashion business and improved operating performance.

Revenue from operations rose 19% to ₹5,666 crore during the quarter, while operating EBITDA increased 36% to ₹847 crore. Operating EBIT margin expanded to 12.9% from 11.5% a year earlier, reflecting improved profitability despite a challenging macroeconomic environment.

On a consolidated basis, revenue grew 18% to ₹5,755 crore, while profit after tax rose 22% to ₹518 crore.

Expansion remains the growth engine

Trent continued its aggressive store rollout during the quarter, opening one Westside outlet and 22 Zudio stores, including one in the UAE, while consolidating three Zudio stores. The company expanded into nine new cities during the period, taking its overall fashion portfolio to more than 1,300 large-format stores across 330 cities, including three cities in the UAE. The network comprises 301 Westside stores, 982 Zudio outlets and 29 stores under other lifestyle formats.

The company said more than 80% of new Zudio stores opened during the quarter were located in Tier-II and Tier-III cities, underscoring its strategy of expanding beyond metropolitan markets. Management expects the annual pace of store additions to remain broadly consistent, although quarterly openings may vary depending on project timelines.

Management remains optimistic

Commenting on the results, chairman Noel N. Tata said the company delivered an encouraging performance despite macroeconomic volatility and geopolitical developments.

“The business delivered encouraging performance during the quarter notwithstanding continuing macroeconomic volatility and geopolitical events. Our brands continue to represent only a small share of the overall addressable market, providing significant headroom for growth across geographies and customer segments,” he said.

Mayank Jain, market analyst, Share.Market by PhonePe, said Trent’s Q1 performance reflected the strength of its expansion-led strategy, even as consumer demand remained moderate.

“Like-for-like sales growth for the fashion portfolio remained in low single digits, while management actively calibrated product pricing to offset rising input costs. With over 80% of new Zudio store additions targeted at Tier-II and Tier-III markets, these stores typically require two to three years to achieve peak revenue density,” he said.

The company said emerging categories such as beauty and personal care, innerwear and footwear contributed more than 21% of revenue during the quarter. Online sales through Westside’s digital platform and Tata Neu accounted for over 6% of Westside’s revenue.

Meanwhile, Trent’s Star grocery business added five stores during the quarter, taking the network to 86 stores across 12 cities. The company said its own brands now contribute more than 73% of Star’s revenue, with store-level economics continuing to improve.

Despite the strong performance, the company cautioned that geopolitical tensions and rising input costs could pose near-term challenges, although it remains focused on maintaining price stability through sourcing efficiencies and supply chain optimisation.