Mumbai – Shares of Trent Ltd., the retail arm of the Tata Group, plunged more than 7% on Friday morning after the company’s near-term growth commentary at its Annual General Meeting (AGM) failed to meet bullish investor expectations.
The stock emerged as the top loser on the Nifty 50 index, which otherwise remained flat during the session.
Brokerage firm Nuvama Institutional Equities highlighted investor disappointment, stating:
“During their commentary, the management mentioned the growth trajectory for Q1FY26, which seems to be underwhelming given the high expectations based on the past track record of growth.”
Trent reported a 20% year-on-year rise in standalone sales for the April–June quarter. While healthy in isolation, this figure sharply trails the company’s 35% compound annual growth rate (CAGR) recorded between FY20 and FY25, and also falls short of management’s earlier target of 25% annual growth for the coming years.
In response to the softer outlook, Nuvama downgraded Trent’s stock to a “Hold” rating, citing “underwhelming near-term growth.”
Trent operates popular fashion brands including Zudio and Westside, and has been one of the star performers in India’s retail sector, benefiting from a robust brand portfolio and expanding offline footprint. However, today’s reaction signals that investors are now looking for sustained outperformance and aggressive execution to maintain premium valuations.
More commentary is expected from the management in upcoming earnings releases to clarify the trajectory for the rest of the fiscal year.
