Fri Feb 07 11:46:47 UTC 2025: ## Trent Ltd. Q3 Earnings: Mixed Signals Despite Profit Surge

**Mumbai, India** – Trent Ltd., a leading Indian retailer, reported a 37% jump in net profit for the third quarter of fiscal year 2025, reaching Rs 344 crore. However, this positive result was tempered by revenue falling short of analyst expectations (Rs 4,535 crore vs. estimated Rs 4,621 crore) and a slowdown in same-store sales growth. While the company’s EBITDA increased by 34% to Rs 838 crore, operating margins dipped slightly to 18.5% from 18.8%. Volume growth over the past nine months was a robust 39%.

Analyst reactions were mixed. Concerns were raised about slowing discretionary consumer spending and Trent’s relatively high valuation (42 times its fiscal 2027 estimated enterprise value-to-Ebitda, compared to peers). Despite this, several firms maintained positive outlooks.

Citigroup, for instance, reiterated its “buy” rating but lowered its target price to Rs 7,800 from Rs 9,350, citing the lower same-store sales growth. Bernstein maintained an “outperform” rating, reducing its target price to Rs 6,900 from Rs 8,100, viewing the recent share price drop as an overreaction. Jefferies maintained a “hold” rating with a slightly reduced target price.

Following the results, Trent’s share price initially dropped 8% before recovering slightly. At 9:27 a.m. on the NSE, it was trading 1% higher at Rs 5,329.9, outperforming the benchmark Nifty 50. Trading volume was significantly higher than average.

Despite the mixed signals, the strong underlying performance, including stable margins and continued store expansion, points to ongoing strength in the company’s fundamentals. A significant majority of analysts (14 out of 22) still maintain a “buy” rating on the stock, suggesting potential for further growth. The average 12-month price target stands at Rs 6,486, implying a potential upside of 22%.

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