The analyst said near-term margin pressure and a lack of breakout volume keep the stock in a consolidation phase.
Trent declined marginally on Thursday after the retail company posted steady year-on-year growth in the June quarter, while the stock remains in consolidation with a clear breakout yet to emerge.
SEBI-registered research analyst Rajneesh Sharma said growth remains intact and execution consistent, though near-term margin pressure and technical resistance levels warrant close monitoring.
Q1 Earnings Review
Trent reported consolidated revenue of ₹5,061 crore, up 20% year-on-year but down 5.1% sequentially. Profit before tax came in at ₹555 crore, up 23% year-on-year but down 15.1% from the previous quarter.
EBIT margin improved to 11.4% from 10.6% a year earlier.
According to Sharma, strong revenue growth continued across Trent’s key brands, Zudio and Westside. The company expanded its total retail footprint to 13.6 million square feet across 242 cities, with online sales up 35% year-on-year, now contributing 6% to Westside’s topline.
During the quarter, 42 new Westside stores and 113 new Zudio outlets were launched.
Sharma noted that this aggressive expansion strategy is fueling Trent’s medium-term runway, supported by operating leverage benefits.
Sharma pointed to near-term pressure on margins due to high promotional activity and rapid store additions. While revenue and PBT showed a sequential decline, he said the growth narrative remains intact.
Technical Breakdown
Sharma observed that Trent recently broke out of a falling trendline and bounced from ₹4,966 to above ₹5,300.
However, the relative strength index (RSI) at 47.26 has yet to confirm bullish momentum. Rising volume is visible but still lacks institutional participation.
He identified ₹5,747.75 as the key breakout level to watch, with further Fibonacci resistance at ₹6,105 and ₹6,688.
On the downside, support levels are at ₹4,978 and ₹4,472.80.
Sharma maintained a neutral to bullish bias and said the trend confirmation would come only if the stock breaks out above ₹5,747.75 with strong volume.
On Stocktwits, retail sentiment for Trent was ‘bearish’ amid ‘normal’ message volume.
Trent’s stock has declined 24.5% so far in 2025.
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