Trent Q1 FY26 Preview: Can Growth Justify Lofty Valuations?

Tata Group’s retail powerhouse, Trent, will announce its Q1 FY26 earnings on August 6. After a blockbuster FY25, all eyes are now on whether this high-flying stock can maintain its growth momentum—or if moderating expansion and steep valuations will test investor patience. FY25 in Review: A Stellar Year, But Signs of Cooldown Trent ended FY25 on a high, with consolidated revenue growing 38 per cent YoY to Rs 18,141 crore and profit before tax soaring 56 per cent. Aggressive store additions and new format launches helped fuel this expansion. But Q4 FY25 showed early signs of normalisation—revenue growth slowed to 28 per cent YoY and net profit declined 55 per cent YoY to Rs 318 crore, albeit from a very high base. Despite that, the bottom line beat estimates, sparking a brief rally in the stock. The quarterly slowdown, particularly following the festive high of Q3, reminded investors that Trent’s retail business experiences seasonal fluctuations. The company itself urged stakeholders to consider its full-year performance instead of judging it based on a single quarter. Q1 FY26 Expectations: A New Growth Normal The April–June quarter of FY25 had delivered a scorching 56 per cent YoY revenue growth, making it a tough act to follow. For Q1 FY26, Trent has already guided towards a ~20 per cent YoY increase in standalone revenue to Rs 5,061 crore. While this would be impressive by sector stand