Trent Stock Jumps 7%: Profit Up 25% as Zudio Powers Growth

Trent shares jumped as much as 7% on Friday, October 30, 2026, after the Tata Group retailer reported a 25% rise in consolidated net profit to Rs 468 crore for the September quarter, with revenue up 22% and operating margins expanding. The stock led the Nifty 50 gainers in Mumbai, even as global technology shares sold off.

What happened

Trent, which runs the Westside and Zudio chains, reported its second-quarter results for fiscal 2027 after market hours on Thursday. Consolidated revenue from operations rose 22% year on year to Rs 5,873 crore, while operating EBITDA jumped 37% to Rs 785 crore, according to The Hindu BusinessLine. Consolidated net profit increased 25% to Rs 468 crore.

The shares rose as much as 6.92% to Rs 3,060 on the NSE in early trade, Upstox reported, before closing 5.44% higher at Rs 3,017.30. In live market coverage, Trent was the top Nifty 50 gainer, rising 6.3% to Rs 3,041.90 as the Sensex climbed more than 500 points and the Nifty reclaimed 23,100, according to BusinessLine's market live blog.

Why it is blowing up

The reaction was about margins as much as growth. Trent's operating EBIT margin improved to 11.6% in the September quarter from 10.5% a year earlier, and gross margin expanded about 120 basis points to 44.5%, helped by premiumisation, better sourcing and product elevation. Like-for-like sales growth in the fashion business recovered to mid-single digits from low single digits in the previous quarter, despite a shift in the festive calendar.

Expansion also continued at pace. Bernstein highlighted 22% standalone revenue growth alongside a 26% expansion in retail area, while the Zudio value-fashion chain and the Star grocery business supported group growth. For the first half of fiscal 2027, consolidated revenue grew 20% to Rs 11,628 crore and net profit rose 24% to Rs 986 crore, with operating EBITDA up 35% to Rs 1,633 crore, according to TradingView / Moneycontrol.

On a standalone basis, revenue climbed 23% to Rs 5,788 crore, operating EBITDA rose 37% to Rs 791 crore, and net profit increased 9% to Rs 490 crore. That slower standalone profit growth partly reflects a comparison with a year-earlier quarter that included a Rs 96 crore pre-tax gain on asset sales, with no material corresponding gain this year.

Key facts

Profit: Consolidated net profit rose 25% year on year to Rs 468 crore in Q2 FY27.

Revenue: Consolidated revenue from operations rose 22% to Rs 5,873 crore.

Margins: Operating EBITDA rose 37% to Rs 785 crore; operating EBIT margin reached 11.6%, up from 10.5%; gross margin was 44.5%.

Stock move: Shares hit Rs 3,060 intraday, up nearly 7%, and closed up 5.44% at Rs 3,017.30 on the NSE.

Leadership: Noel Tata will step down as chairman after nearly three decades of association with the company, BusinessLine reported alongside the results.

What analysts are saying

Brokerages were divided, which is part of why the stock stayed in focus all session. HSBC maintained a buy rating and raised its target price to Rs 3,480 from Rs 3,390, lifting its fiscal 2027 EBITDA estimate by 7%. Bernstein maintained an outperform rating with a Rs 3,500 target. Jefferies was more cautious, holding its rating with a Rs 3,300 target and noting that margin expansion helped deliver 37% EBITDA growth, even though the figure came in below its estimates. Analysts flagged input-cost inflation, revenue productivity per store and whether second-half margins can hold as the key questions from here.

What's next / takeaway

The quarter gives Trent a cleaner story than a simple sales beat: growth stayed above 20%, margins expanded instead of being bought with discounts, and like-for-like growth recovered. The debate now is valuation and durability — whether Zudio's rapid expansion and Westside's premium push can keep margins near these levels through the second half, and how the chairman transition is handled. This report is news coverage only and is not investment advice.

FAQ

Why did Trent shares jump 7% on October 30, 2026?

Trent reported Q2 FY27 profit up 25% to Rs 468 crore and revenue up 22% to Rs 5,873 crore, with margins expanding more than expected, sending the stock to Rs 3,060 intraday.

How did Zudio and Westside perform in the quarter?

Zudio expansion and Star grocery growth supported group revenue, fashion like-for-like growth recovered to mid-single digits, and retail area expanded about 26% year on year.

What are brokerages saying about Trent after the results?

HSBC raised its target to Rs 3,480 with a buy rating and Bernstein set Rs 3,500 with outperform, while Jefferies held with a Rs 3,300 target, citing margin strength but some estimate misses.

Is Noel Tata leaving Trent?

BusinessLine reported that Noel Tata will step down as chairman after nearly three decades of association with the company, a change announced alongside the Q2 results.