Trent Q2 profit rises 25 to Rs 468 cr Zudio crosses 1 000-store milestone

New Delhi, Oct 29 (PTI) Trent Ltd, the Tata Group's retail arm, on Thursday reported a 25 per cent year-on-year increase in consolidated net profit to Rs 468 crore for the September quarter, as revenue growth and operating leverage supported earnings amid an inflationary environment.

     Consolidated revenue from operations rose 22 per cent to Rs 5,873 crore in the quarter ended September 30, while operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased 37 per cent to Rs 785 crore, the company said in a statement.

     For the first half of FY27, consolidated revenue grew 20 per cent to Rs 11,628 crore and net profit rose 24 per cent to Rs 986 crore. Operating EBITDA increased 35 per cent to Rs 1,633 crore.

     On a standalone basis, revenue from operations climbed 23 per cent to Rs 5,788 crore in the September quarter, while operating EBITDA rose 37 per cent to Rs 791 crore. Net profit increased 9 per cent to Rs 490 crore.

     The slower growth in standalone profit compared with operating earnings partly reflects a higher base in the year-earlier period, which included non-operating gains from asset sales. Trent reported a pre-tax profit on asset sales of Rs 96 crore in Q2 FY26 and Rs 109 crore in H1 FY26, with no material corresponding gains in the current-year periods.

     Trent's operating EBIT margin improved to 11.6 per cent in the September quarter from 10.5 per cent a year earlier, according to the company.

     "Our brands experienced solid traction during the quarter. It was encouraging to witness a more robust consumer sentiment despite the relatively inflationary backdrop," Noel N Tata, chairman of Trent, said.

     The company continued to expand its fashion retail network, opening its 1,000th Zudio store during the quarter. As of September 30, its portfolio comprised 999 Zudio stores, including seven in the United Arab Emirates, 311 Westside stores and 32 outlets across other lifestyle concepts.

     During Q2, Trent opened 19 Zudio stores and 10 Westside stores, while consolidating two Zudio outlets. Its fashion retail footprint exceeded 18.5 million square feet, spanning 339 cities, including three cities in the UAE.

     The expansion highlights the company's strategy of scaling its value-fashion Zudio brand alongside Westside, which targets a broader lifestyle and fashion market. Trent said the reception in tier-two and tier-three locations had encouraged it to expand further into smaller cities and hinterland markets.

     Emerging categories, including beauty and personal care, innerwear and footwear, contributed more than 21 per cent of standalone revenue, the company said.

     Westside's digital business also continued to grow. Online revenue increased 20 per cent in the first half of FY27 and accounted for more than 6 per cent of Westside revenue, supported by its own platform and its presence on Tata Neu.

     Trent's Star food and grocery business reported revenue growth of more than 20 per cent during the quarter, despite a competitive operating environment. The company added one store during the period, taking its network to 87 outlets across 13 cities.

     The share of own-brand products in Star's revenue exceeded 74 per cent, according to Tata. Trent said its private-label strategy was improving the business’s economic profile at the store level.

     Tata said the company remained confident in the food and grocery business and would continue investing in expansion while focusing on scale and strengthening its market position.

     "As I conclude my tenure as Chairman of Trent, I could not be more delighted at the enormous strides the Company has made in recent years," he said, adding that he believed the company's "best days lie ahead."

(This story has not been edited by THE WEEK and is auto-generated from PTI)