Trent Q4 revenue up 29% as it pursues growth in key markets

Tata Group-owned retailer Trent Limited reported a 29 per cent rise in revenue in Q4 of FY25 led by its fashion portfolio, which registered a mid-single digit like-for-like growth.

The company said it was continuing to build its presence on metros and Tier 1 cities. “The agenda has been to drive material reach and share of revenues across key markets,” it said. It was also following the strategy of pursuing revenue growth across comparative micro markets instead of just the performance of comparative stores.

However it reported a 46 per cent decline in net profit, due to the effect of an exceptional gain that had boosted net profit in the year-ago quarter.

The retailer has been focusing on the quality of its stores while also increasing the density of its presence in its key markets. It now operates with a significant portfolio of over 1,000 “large-box” fashion stores across 242 cities. In FY25, the company opened 40 Westside and 244 Zudio stores, while consolidating 24 stores each of both brands. As of March 31, Trent’s store portfolio included 248 Westside, 765 Zudio (including 2 stores in the UAE), and 30 stores across other lifestyle concepts.

Like-for-like growth for the full financial year was in double digits, while the fashion formats recorded 40 per cent volume growth. During the year it had expanded its presence across 64 cities and towns including Tier 2, 3 locations. “The traction from customers has been encouraging given the growing awareness of our brands across markets. We believe this play out augurs well as an indicator as we pursue the next phase of our growth.”

“In FY25, we built on the agenda of strongly growing our reach and becoming more accessible to our customers. Given the seasonality of the business, nature of the real estate market and our approach to inventory management, the full year performance is more representative with respect to revenues, operating profitability and network expansion vis-à-vis any individual quarter,” said Chairman Noel Tata.

The operating EBIT margin for Q4FY25 improved to 9.3 per cent, up from 8.3 per cent in Q4FY24. It said the change in revenue participation across concepts was broadly in line with its strategic plans. The gross margin profile of Westside and Zudio was consistent. “We believe given our approach with respect to merchandise sourcing, price architecture, distribution and our disciplines around inventory provisioning, the full year results are more representative of the health of the business.” 

In order to improve store experience the company retailer has been investing in technology as well as supply chain.

. The emerging categories, including beauty & personal care, innerwear and footwear continued to gain traction with customers and contributed to over 20 per cent of revenues.

Its hypermarket business under Star Bazaar saw an operating revenue growth of 17 per cent in the quarter and added 12 stores during the year.

Despite the profit decline, Trent’s board approved a dividend of ₹5 per equity share, though the record date for determining shareholder eligibility has not yet been announced.

The shares of Trent Limited ended today on the NSE at ₹5,510 up by ₹300.50 or 5.77 per cent.  

Published on April 29, 2025