Trent Q1 profit jumps 26 per cent as retailer posts robust revenue growth

Mumbai: Trent Limited stitched together another strong quarter, reporting double-digit revenue growth and a sharp rise in profit for the first quarter of FY27, as the Tata Group retailer continued to benefit from steady demand across its fashion and lifestyle businesses.

The company reported standalone revenue from operations of Rs 5,666.3 crore for the quarter ended June 30, up 18.5 per cent from Rs 4,781.3 crore in the corresponding quarter last year. Sequentially, revenue also increased from Rs 4,936.6 crore in the March quarter.

Including other income of Rs 30.2 crore, total standalone income stood at Rs 5,696.5 crore.

Standalone net profit rose 25.8 per cent year-on-year to Rs 531.8 crore, compared with Rs 422.6 crore a year earlier. Profit before tax increased to Rs 701.8 crore, while total comprehensive income reached Rs 534.9 crore.

The retailer’s total standalone expenses rose to Rs 4,994.7 crore, reflecting higher business activity. Purchases of stock-in-trade accounted for Rs 3,012.7 crore, while employee benefit expenses stood at Rs 348.9 crore. Occupancy costs came in at Rs 559 crore, depreciation and amortisation at Rs 393.8 crore, finance costs at Rs 45.1 crore, and other expenses at Rs 624.5 crore.

At the consolidated level, which includes subsidiaries and overseas businesses, revenue from operations increased to Rs 5,754.7 crore from Rs 4,883.5 crore in the year-ago period. Consolidated total income stood at Rs 5,784.5 crore, while net profit came in at Rs 518.1 crore, with Rs 519 crore attributable to equity shareholders.

The company maintained healthy balance sheet metrics during the quarter. Standalone operating margin improved to 12.9 per cent, while net profit margin stood at 9.4 per cent. The current ratio was 2.23, debt-to-equity ratio remained at 0.29, and the interest coverage ratio improved to 16.84, reflecting a comfortable financial position.

Trent also completed the redemption of 5,000 redeemable non-convertible debentures carrying a coupon of 5.78 per cent, originally issued in FY22.

During the quarter, the company completed a 1:2 bonus share issue, increasing its paid-up equity share capital to Rs 53.3 crore from Rs 35.6 crore. Adjusted earnings per share stood at Rs 9.97 on a standalone basis and Rs 9.73 on a consolidated basis.

Alongside the financial results, Trent announced key leadership changes. Ratul Neogi will retire as head of internal audit on August 31, after which Varsha Agarwal will assume the role from September 1. Agarwal has spent more than 15 years with the company and most recently led its Internal Financial Controls function.

The board also proposed appointing BSR & Co. LLP as statutory auditor for a five-year term beginning FY28, subject to shareholder approval. The appointment will follow the completion of Deloitte Haskins & Sells LLP’s second consecutive five-year tenure after the company’s 75th annual general meeting in 2027.

With revenue continuing to grow at a healthy pace, profitability improving and governance transitions already in motion, Trent appears well placed to sustain its expansion as one of India’s fastest-growing organised retailers.