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Trent Poised for Strong Revenue Growth Despite Margin Pressures


Updated: April 28, 2025 14:56

Image Source : Upstox

Trent Limited is expected to report robust revenue growth for the fourth quarter of the financial year, driven by store expansion and strong consumer demand in the value fashion segment. Analysts anticipate a 34 percent year-on-year increase in revenue, reaching 4,275 crore rupees, supported by the expansion of Zudio and Westside outlets.  

Despite the revenue surge, margins may face pressure due to an extended end-of-season sale and a weaker product mix. Analysts suggest that while value fashion continues to perform well, premium lifestyle brands may experience subdued demand, impacting overall profitability.  

Trent's net profit is projected to decline by 47 percent year-on-year to 344 crore rupees, primarily due to the absence of an exceptional one-time gain recorded in the previous fiscal year. However, adjusted for this factor, the company's profit is expected to grow modestly by eight percent.  

Industry experts highlight that Trent's aggressive store expansion strategy, with up to 122 new outlets added in the quarter, will contribute to sustained revenue growth. Investors are closely monitoring demand trends in urban and tier-3 markets, as well as the company's future expansion plans.  

Key Highlights of Trent's Q4 Performance  

- Revenue expected to rise 34 percent year-on-year to 4,275 crore rupees.  
- Net profit projected at 344 crore rupees, reflecting a 47 percent decline due to the absence of a one-time gain.  
- Extended end-of-season sale and weaker product mix may impact margins.  
- Store expansion continues, with up to 122 new outlets added in the quarter.  
- Analysts monitoring demand trends and future expansion strategies.  

Sources: Moneycontrol, Economic Times, MarketScreener, Trent Financial Reports, Investing.com
 

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