The company posted a 41 per cent rise in standalone profit after tax to ₹660 crore for the third quarter ended December 31, 2025, helped by operating efficiencies and higher profitability even as revenue momentum moderated. | Photo Credit: istock.com
Shares of Trent fell nearly 4 per cent in early trade after the Tata Group retailer reported its December-quarter numbers, prompting mixed reactions from brokerages that praised the margin performance but remained cautious on the outlook for growth.
At 10.21 am, it traded flat at ₹4,031.70 after falling to a low of ₹3,863 on the NSE against the previous close of ₹4,012.60.
The company posted a 41 per cent rise in standalone profit after tax to ₹660 crore for the third quarter ended December 31, 2025, helped by operating efficiencies and higher profitability even as revenue momentum moderated.
Bernstein maintained an outperform rating with a target price of ₹5,000, saying the quarter delivered strong margins while a growth revival was still “loading”. The brokerage noted that challenges on the growth front were already flagged in Trent’s business update and added that network expansion remained steady. It said the margin improvement trajectory appeared to have stabilized and was sustainable, though employee-cost leverage had largely played out and would now depend on a recovery in same-store sales growth.
Goldman Sachs, which has a neutral rating and a target price of ₹4,530, said the EBIT beat was driven by higher gross margins but cautioned that most operating-cost benefits were likely behind the company. It flagged pressure on fourth-quarter profitability and added that negative like-for-like growth in the third quarter could weigh on Trent’s growth and margin assumptions for FY27 and FY28.
UBS struck a more optimistic note, retaining its buy call and raising expectations of longer-term growth with a target price of ₹5,300. The brokerage said the quarter surprised positively on earnings, with strong margin expansion offsetting a weaker topline and negative same-store sales growth. UBS added that Trent continued to pursue its core growth strategy and estimated around 22 per cent revenue growth for FY27, with potential upside if demand conditions improve alongside ongoing operational improvements.
Jefferies kept a hold rating and cut a cautious tone despite acknowledging an earnings surprise driven by margins. With a target price of ₹4,575, the brokerage said third-quarter revenue growth was at a multi-quarter low, something it had anticipated from the company’s pre-quarter release. It added that negative fashion like-for-like growth was partly due to a shift in the festive calendar, a pattern seen across other retailers as well. While management continued to focus on expanding in both existing and new markets and improving disclosure standards, Jefferies said it preferred to stay on the sidelines until there was clearer evidence of a sustained recovery.
Nuvama maintained a hold rating and a target price of ₹4,543, highlighting year-on-year growth of 16 per cent in revenue, 28 per cent in EBITDA and 19 per cent in adjusted profit after tax. It said operating deleverage from negative like-for-likes was offset by better gross margins, possibly due to a favorable product mix and lower employee costs. However, management indicated that most automation benefits had already been realized, suggesting productivity-led margin gains could be harder to come by going forward, while rent growth remained broadly in line with revenue.
Citi remained the most bearish among major brokerages, reiterating a sell rating and a target price of ₹4,350. The firm said revenue growth was broadly in line with its estimates, but EBITDA and adjusted profit after tax growth of 27 per cent and 40 per cent year-on-year were well ahead of expectations, raising questions about the quality of the beat. Citi pointed out that the EBITDA outperformance was led by a sharp expansion in gross margins, which it viewed as difficult to sustain because of a changing business mix, while the PAT boost was amplified by a surge in other income. It also warned that employee and rent costs had not fallen meaningfully in recent quarters despite rapid store area expansion, posing a risk to future margins.
Published on February 5, 2026