Due to reduced same-store sales growth (SSSG) and the ongoing development of Zudio outlets, Trent recorded the biggest drop in net profit for the March quarter since the Covid period.
While the company’s store additions were strong, margins shrank as a result of increased discounts and a growing proportion of low-margin Zudio business in the revenue mix.
In the upcoming quarters, revenue growth is probably going to be supported by Zudio’s back-end expansion. The business is also anticipated to concentrate on new markets, such as beauty items and lab-grown diamonds, which might support the top line.
Trent’s revenue climbed by 29 per cent year-on-year but declined by 10 per cent in the fourth quarter of FY ’25 from the previous quarter, suggesting sequential deterioration after the conclusion of the festive season. Despite continued retail expansion, net profit fell 47 per cent year over year and 26 per cent sequentially in the March 2025 quarter.
During the quarter, the company opened 40 Zudio and 13 Westside locations. Rent costs decreased by 20 per cent annually as a result of the company’s efficient cost control. Despite some pressure on gross margins from Zudio’s lower pricing strategy, analysts predicted that cost discipline would keep the operating margin before depreciation and amortisation (EBITDA margin) steady at 16–17 per cent.
The company’s revenue and net profit for the fiscal year 2025 increased by 40 per cent and 10 per cent, respectively, to Rs. 16,668 crore (US $ 1.97 billion) and Rs. 1,584.8 crore (US $ 187 million). A higher base last year due to an extraordinary item of Rs. 576 crore (US $ 68.1 million) regarding the gain on reassessment of lease assumptions resulted in a lesser profit growth.
Analysts anticipate that Zudio’s back-end store additions will help the company’s growth in FY ’26. One essential component would be an improvement in SSSG. Analysts are optimistic about Trent’s fundamental growth possibilities despite immediate difficulties.
