In FY26, despite a moderation in revenue growth to 18 per cent (40 per cent Y-o-Y growth in FY25), Trent’s pre-Ind AS Ebitda grew 27 per cent and adjusted net profit rose 24 per cent Y-o-Y, propelled by cost-efficiency measures. In FY26, Trent’s revenue grew 18 per cent Y-o-Y to ₹19,700 crore, driven by 32 per cent Y-o-Y net retail area addition.
Reported operating profit grew 32 per cent Y-o-Y to ₹3,640 crore as Ebitda margin expanded 200 basis points Y-o-Y to 18.5 per cent. Pre-Ind AS Ebitda rose 27 per cent Y-o-Y to ₹2,690 crore as margins expanded 100 basis points Y-o-Y to 13.65 per cent. The reported FY26 net profit grew 24 per cent Y-o-Y to ₹1,970 crore. The adjusted net profit accounts for a 25 per cent Y-o-Y adjustment for labour code impact.
Working capital days improved to 33 from 37 Y-o-Y, as inventory days reduced to 42 days from 44 Y-o-Y. Trent’s net cash stood at ₹290 crore in FY26, compared to ₹340 crore in FY25.
The capex surged over 80 per cent Y-o-Y to ₹1,490 crore, with Y-o-Y free cash flow (FCF) generation at ₹190 crore. The board has approved raising up to ₹2,500 crore in equity for investments in upgrading the store network, pushing new brands, automating the supply chain, and supporting a rollout of Star Bazaar through real estate development.
The Q4FY26 standalone revenue at ₹4,940 crore grew 20 per cent Y-o-Y, with 32 per cent Y-o-Y net area additions by end-FY26 even though revenue per square foot dipped 11 per cent Y-o-Y.
The LFL growth for the fashion portfolio recovered to low single digits in Q4FY26 (against marginally negative growth in Q3). Gross profit grew 25 per cent Y-o-Y to ₹2,190 crore as gross margin rose 170 basis points Y-o-Y to 44.3 per cent. Employee cost was up 11 per cent Y-o-Y, but sales, general, and administration (SG&A) and other costs rose 18 per cent Y-o-Y. Occupancy cost (rentals recorded above Ebitda) grew 15 per cent Y-o-Y, while lease rentals (below Ebitda) rose 33 per cent Y-o-Y, resulting in overall rental growth of 21 per cent Y-o-Y. Reported Ebitda grew 40 per cent Y-o-Y to ₹920 crore, with reported Ebitda margins expanding 265 basis points Y-o-Y to 18.6 per cent.
Trent claimed Q4FY26 standalone pre-Ind AS Ebitda grew 43 per cent Y-o-Y to ₹670 crore, with a pre-Ind AS Ebitda margin of 13.5 per cent, up 215 basis points Y-o-Y, while standalone pre-Ind AS Ebit margin stood at 11.5 per cent, up 180 basis points Y-o-Y. Depreciation rose 38 per cent Y-o-Y and interest costs were up 12 per cent Y-o-Y, while other income declined 37 per cent Y-o-Y, resulting in 30 per cent Y-o-Y growth in net profit to ₹450 crore.
Operating cash flow (after interest and leases) surged 67 per cent Y-o-Y to ₹1,680 crore. The Q4 capex jumped to ₹1,480 crore, compared to ₹820 crore in FY25.
The management says consumer sentiment was stable in Q4, but discretionary spending remained cautious due to macro factors. Geopolitical volatility impacted input costs and labour availability. India sourcing offers partial insulation, but there are inflationary pressures and a negative impact on sentiment due to the war. LFL growth was in low single digits in Q4FY26 and FY26. Management is focused on micro-market revenue growth, not store-level LFL. New markets will take two to three years to reach maturity.
The focus is on gradual premiumisation and brand moat expansion, and competitive intensity is high. Hence, the board has approved equity infusion for investments. The company has also approved a 1:2 bonus and ₹6 dividend, which is slightly inconsistent with the need for capex.
Trent has good cost controls and is generating steady cash flows. Further recovery in LFL growth is monitorable since sustained revenue growth acceleration is needed for upgrades. It is highly valued, which limits room for upgrades, and the price has swung in both directions post results.
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