Trent Share Price Declines 1% Despite Robust Q4 Earnings, Analysts Weigh Investment Prospects

Trent Share Price Declines Amidst Global Market Weakness

On Thursday, April 23, Trent, a Tata Group company, saw its share price fall by over 1% despite reporting strong Q4 results. This decline comes as the Indian market, Dalal Street, experiences a weak sentiment due to rising crude oil prices and stalled peace talks between the US and Iran. The scrip dropped as much as 1.2% to its day's low of ₹4381.30 on the BSE.

The overall market sentiment was downbeat, with the Sensex opening 533 points or 0.68% lower at 77,983.66, and the Nifty 50 starting the day 176 points or 0.72% lower at 24,202.35.

Strong Q4 Performance

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Despite the market weakness, Trent reported a consolidated net profit of ₹413.10 crore in Q4 FY26, a 32.57% year-over-year (YoY) growth from ₹311.60 crore in the same period last year. The company's revenue from operations stood at ₹5,027.99 crore in Q4 FY26, up from ₹4,216.94 crore in Q4 FY25, registering a growth of 19.23%.

Trent's operating EBITDA came in at ₹653 crore for the quarter and ₹2,702 crore for FY26, marking a growth of 44% YoY in Q4 and 25% for the full year.

Corporate Actions

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Trent announced its first-ever bonus issue along with its earnings and dividend. The board approved a bonus issue in the ratio of 1:2, with one bonus share of Re 1 for every two fully paid-up equity shares held as of the record date, subject to approval. The board also recommended a 600% dividend, or ₹6 per equity share of Re 1, subject to shareholder approval.

In addition, the company approved raising up to ₹2,500 crore through one or more tranches via equity issuance, rights issue, or other permitted modes, subject to necessary approvals.

Brokerage Views

Brokerages have mixed views on Trent stock, with growth visibility intact but valuations and near-term risks keeping upside in check. HDFC Securities highlighted that Trent's standalone revenue grew 20.2% YoY to ₹4,940 crore, largely driven by store additions, while like-for-like (LFL) growth remained in low single digits for both Q4FY26 and FY26.

HDFC Securities revised its FY27/28 APAT estimates by -1/+1% respectively and downgraded the stock due to limited upside post a >30% rally since its last upgrade. Elara Capital remains constructive on the long-term outlook, noting that revenue growth was in line with expectations, while margins saw an upside due to gross margin gains.