Shares of Trent Limited ended Tuesday’s session down 12.44 per cent on the NSE, closing at ₹2,927.80 against a previous close of ₹3,343.80, one of the steepest single-day falls for the Tata Group retailer, after its Q1FY27 revenue update missed analyst expectations. The stock hit an intraday low of ₹2,920, with total traded volume surging to 90.60 lakh shares worth ₹2,704.33 crore, reflecting heavy institutional activity. Market capitalisation closed at approximately ₹1.55 lakh crore.

Motilal Oswal flagged the results as “slightly weaker than expectations,” noting Trent’s 19 per cent YoY standalone revenue of ₹5,666 crore missed their 22 per cent estimate. The brokerage flagged that revenue per store declined approximately 5 per cent YoY, raising concerns about slower ramp-up of newer stores or cannibalization at select locations, and warned the miss “would likely lead to correction in the stock,” while retaining a Buy.

Nishchal Jain, Quant Researcher at Share.Market by PhonePe, attributed the sell-off to a valuation correction after the stock’s 50 per cent rally from its March lows, noting rapid store expansion had triggered localised cannibalisation and a 12.2 per cent drop in revenue per square foot. He framed the correction as “a healthy valuation consolidation rather than structural decay,” recommending existing holders “Hold” or “Accumulate on Dips” and advising fresh investors to consider staggered buying near key technical floors.

Broker views

However, global brokerages are divided. Bernstein while maintaining its Outperform rating on Trent, cut the target price to ₹3,500 from ₹5,000, saying the company’s investment narrative over the past three years has overwhelmingly centred on Zudio, whose rapid store expansion transformed the company’s growth trajectory.

Macquarie also maintained its OP rating and price target of ₹3,600 said: “We acknowledge that the sequential moderation in sales growth momentum is likely to weigh on near-term performance. However, we see Trent’s value positioning, and the improving outlook on consumer demand aiding a growth recovery.”

Goldman Sachs maintained its Neutral rating with a target price of ₹4,080 and said the Q1 update was on its expected lines.

Morgan Stanley also maintained its ‘Overweight’ rating but with a reduced target price of ₹3,151. According to MS, the first-quarter revenue growth was slightly below estimates but expects EBITDA margin expansion of around 100 basis points year-on-year.

Citi described Zudio’s seasonal store additions as healthy but remained cautious due to weakening store productivity, competition and potential cannibalisation risks. It reiterated its Sell rating with a target price of ₹2,733.

Virat Jagad, Senior Technical Research Analyst at Bonanza, described the breakdown as bearish, with the stock slipping below key near-term EMAs and RSI reversing from overbought territory, advising a strict stop-loss at ₹2,890 for existing holders.

Trent had reported Q1FY27 standalone revenue of ₹5,666 crore, up 19 per cent from ₹4,781 crore a year ago, with its store count reaching 1,312, including 982 Zudio and 301 Westside outlets. The stock has now shed over 20 per cent in the past year and trimmed its calendar-year gains to roughly 2 per cent.

Published on July 7, 2026