Trent stock cracks 8% post Q3 update despite steady numbers – here’s what spooked investors
- 6th January 2026
- 02:30 PM
- 2 min read
Summary
Shares of Trent fell sharply on January 6 after its Q3FY26 business update signalled a slowdown in growth momentum. While revenue rose 17% year-on-year, flat sequential growth and concerns around store productivity triggered a swift sell-off.Mumbai | January 6, 2026
Shares of Trent plunged up to 8% in early trade on Tuesday after the Tata Group retailer’s December-quarter business update failed to reassure investors on growth momentum.
The sharp fall in the stock erased nearly ₹13,150 crore from the company’s market capitalisation within minutes of the opening, making Trent the top loser on the Sensex and Nifty.
The stock dropped to ₹4,060, snapping a four-session winning streak. The sell-off comes at a time when markets are increasingly sensitive to signs of growth moderation, particularly after Trent’s strong multi-year rally driven by rapid store expansion and premium valuations.
Q3 revenue rises 17% YoY, but sequential growth disappoints
For Q3FY26, Trent reported standalone revenue from the sale of products at ₹5,220 crore, marking a 17% year-on-year increase from ₹4,466 crore in the year-ago quarter. However, revenue growth remained flat sequentially, matching the 17% YoY growth reported in Q2FY26.
This stands in contrast to the high double-digit growth of 40–50% delivered during the first three quarters of the previous financial year, underscoring a clear moderation in topline momentum.
For the nine months ended December 31, 2025, revenue rose 18% year-on-year to ₹14,604 crore, compared with ₹12,368 crore in the corresponding period last year.
Store additions accelerate, but productivity concerns linger
Trent continued to expand its retail footprint aggressively during the quarter.
As of the end of Q3 FY26, Trent operated:
- 278 Westside stores
- 854 Zudio stores, including four in the UAE
- 32 stores across other lifestyle concepts
During the quarter, the company added 17 Westside stores and 48 Zudio stores, underscoring its continued focus on network expansion. However, newer stores typically have a longer gestation period, which can weigh on near-term productivity metrics.
Recent gains reverse as sentiment weakens
Trent’s shares have fallen around 4% over the past five sessions and more than 25% over the last six months. On a one-year basis, the stock is down over 42%, even after delivering a sharp 490% rally over the past five years.
The latest sell-off highlights growing investor caution as Trent transitions from a phase of rapid growth to a more measured expansion cycle, with markets closely tracking demand trends, store productivity, and execution metrics in the coming quarters.
