Trent Q1 Results: Profit Jumps 126% to ₹393 Cr - Get the Full Story

Trent Ltd reported a consolidated net profit of ₹392.6 crore for Q1 FY25, marking a 126% increase. The company's revenue from operations rose to ₹4,104.4 crore, a 56% increase. Trent's earnings before interest, tax, depreciation, and amortization (EBIDTA) stood at ₹612.6 crore, with the EBIDTA margin rising to 14.91%.

Trent Q1 Results Highlights

On August 9, Trent Ltd reported a consolidated net profit of ₹392.6 crore for Q1 FY25, marking a 126% increase compared to the ₹173.48 crore profit in the same quarter of the previous financial year. This performance significantly exceeded market expectations.

Following the announcement of its Q1 results, Trent's stock surged, reaching the upper circuit with a share price of ₹6,208.5 during the afternoon trade, reflecting a 10% increase from the prior closing price.

The Tata Group company's revenue from operations rose to ₹4,104.4 crore, a 56% increase from ₹2,628.37 crore in the corresponding quarter last year, as disclosed in a regulatory filing.

A Moneycontrol survey of five brokerages had anticipated a revenue growth of 45.7%, expecting it to reach ₹3,695 crore, with a net profit projection of ₹294 crore.

Trent's earnings before interest, tax, depreciation, and amortization (EBIDTA) stood at ₹612.6 crore, with the EBIDTA margin rising to 14.91%, up from 13.93% in the same quarter of the previous year. During this quarter, Trent opened 25 new stores.

As of June 30, the company's store portfolio included 228 Westside stores, 559 Zudio stores, and 36 stores across other lifestyle concepts, spanning 178 cities. In Q1, the company opened 6 Westside and 16 Zudio stores in 12 cities.

The gross margin profile for Westside and Zudio remained consistent with previous trends. The overall operating EBIT margin for Q1 FY25 was 10.6%, up from 7.8% in Q1 FY24.

The Star business, which focuses on fresh food and groceries retail, added six new stores this quarter, bringing the total to 72. The Star business recorded a 29% growth in operating revenue for Q1 FY25, with like-for-like (LFL) growth exceeding 20%.

The company's regulatory filing highlighted the improved operating performance driven by its own brands, staples, and fresh and general merchandise offerings, which now account for over 70% of revenues.

The filing further noted, "With increasingly favorable economics, the Star business exhibits the characteristics of a differentiated and scalable model and is an important growth engine in our portfolio."

Trent Management Commentary

Noel N Tata, Chairman of Trent Limited, emphasized the significant market potential for building brands and direct-to-customer business models, expressing intentions to continue expanding and enhancing store presence to better serve customers and strengthen the brand's promise.

He also noted, "Despite a subdued overall market sentiment and heightened competition, we are seeing encouraging traction for our lifestyle offerings across brands, concepts, categories, and channels. Our focus on delivering consistent and improved value propositions keeps us relevant to our customers."

Regarding the Star business, Tata stated, "By applying Trent’s playbook, we are seeing strong customer traction. Several new stores were added in Q1, and we expect a steady expansion of our portfolio going forward. The success of our own branded products also bodes well for the Star business. We are confident that this business is well-positioned to accelerate and deliver substantial value to customers and shareholders."

About Trent Ltd

Trent Ltd, a Tata Group subsidiary, operates retail chains across India, including department stores, hypermarkets, supermarkets, and specialty stores. The company's product offerings range from clothing, footwear, cosmetics, and handbags to household furniture and accessories. It also provides staple foods, beverages, health and beauty products, consumer electronics, and in-house garments for men, women, and children.

Additionally, Trent operates a family entertainment store offering books, toys, and sports-related merchandise. The company manages its business under the Zudio, Westside, Star, Samoh, and Utsa brands, conducting sales through both online and physical stores. Trent is headquartered in Mumbai, Maharashtra, India.