Trent Share Price Drops After FY26 Earnings, Bonus Issue and Dividend Announcement

Mumbai, April 23: Shares of Trent Ltd. fell nearly 4% in early trade Thursday, a day after the Tata Group retailer reported strong earnings growth for the March quarter and announced a bonus issue and dividend.

The stock was trading at ₹4,268.70, down 3.74%, as of 10:12 a.m. IST, according to exchange data. The decline followed a recent rally in the stock ahead of the earnings announcement.

In a regulatory filing dated April 22, the company reported a 33% year‑on‑year rise in consolidated profit after tax for the fourth quarter ended March 31, 2026, at ₹413 crore. Revenue from operations rose 19% to ₹5,028 crore, supported by store additions and same‑store sales growth.

Operating performance improved during the quarter, with EBIT margin expanding to 11.5% from 9.7% a year earlier. Consolidated EBITDA increased 44% to ₹653 crore, reflecting operating leverage from scale expansion across formats.

For the full financial year FY26, Trent reported revenue of ₹20,074 crore, up 17% from the previous year. Consolidated profit after tax rose 13% to ₹1,741 crore, according to the filing.

The company’s board approved a bonus issue in the ratio of 1:2, under which shareholders will receive one additional equity share for every two shares held, subject to shareholder approval. The board also recommended a dividend of ₹6 per equity share.

Despite the positive earnings trajectory, the stock came under pressure following the announcements. In the previous session on April 22, shares showed volatility, rising to around ₹4,476 during afternoon trade before easing to close near ₹4,425.

Over the five sessions from April 15 to April 22, the stock had gained about 11.4%, suggesting profit‑taking after the results and capital allocation announcements.

Trent continued to expand its retail footprint during the quarter, opening 23 Westside stores and 109 Zudio stores. The company also entered new geographies, including international expansion for Zudio in the United Arab Emirates.

Emerging categories such as beauty, personal care, innerwear and footwear contributed more than 21% of total revenue. Online sales remained strong, with Westside’s digital revenue rising 25% during the quarter.

For the full year, Trent added 60 Westside and 212 Zudio stores, taking its total store count to more than 1,250 outlets across 321 cities. Total retail space exceeded 17.7 million square feet as of March 31, 2026.

Chairman Noel Tata said the company maintained steady performance despite macroeconomic headwinds and continued to build a strong portfolio of consumer brands.

Trent Ltd., part of the Tata Group, operates retail formats including Westside, Zudio and Star, focusing on fashion, lifestyle and value retail across urban and semi‑urban markets. The company follows an asset‑light model with an emphasis on private labels and rapid store expansion.

While the bonus issue and dividend signal management confidence in earnings visibility, analysts and investors remain cautious about near‑term valuations and the impact of capital actions following the stock’s recent rally.

Source;

https://nsearchives.nseindia.com/corporate/TRENT_22042026163223_OutcomeofBMFINAL.pdf

https://www.nseindia.com/get-quote/equity/TRENT/Trent-Limited