Trent’s profit grew 25% and Zudio, its value fashion chain, opened its 1,000th store. A detail in the store numbers is more telling: Trent opened fewer than half as many Zudio stores this quarter as it did a year ago, which suggests India’s fastest-growing retailer is deliberately slowing down.
Trent, the Tata Group’s retail company, reported consolidated net profit of ₹468 crore for the September quarter, up 25% from ₹373 crore a year earlier. Revenue from operations rose 22% to ₹5,873 crore, and operating EBITDA rose 37% to ₹785 crore. For the first half, revenue rose 20% to ₹11,628 crore and profit 24% to ₹986 crore.
Profit growth would have been higher without a one-time item: the year-earlier quarter included a ₹96 crore gain from asset sales, which did not recur.
Slow store growth
Zudio opened its 1,000th store during the quarter. At the end of September, Trent had 999 Zudio stores (including seven in the UAE), 311 Westside stores and 32 stores in other formats, across 339 cities. In a few years, Zudio has become one of the largest fashion retailers in India by store count, selling low-priced fashion to young buyers in small and mid-sized towns.
The store-opening figures show a change.
In the September 2026 quarter, Trent opened 19 Zudio stores and consolidated two, a net addition of 17. A year earlier, in the September 2025 quarter, it opened 44 Zudio stores. For the first half of FY27, net Zudio additions were 36.
Zudio’s expansion has dropped by more than half. Over the past three years, Trent’s main strategy has been to open Zudio stores as fast as possible, and its share price reflected that.
The company did not explain the slowdown in its results release. There are a few possible reasons. Trent may be reaching saturation in its best cities and finding fewer good locations.
It may be prioritising the performance of existing stores, which matters because it has faced questions about slowing same-store sales. Or it may be holding back on rent and capital spending during a period of high inflation and slower discretionary demand.
Still growing strongly
Revenue growth of 22% is still strong for retail. Trent is also expanding into new categories: beauty, personal care, innerwear and footwear now make up more than 21% of revenue, which helps both sales per customer and margins. The Star grocery business, a joint venture, grew more than 20%.
Margins held up well. EBITDA grew faster than revenue, which shows operating leverage from Trent’s existing stores even as new openings slow.
The company also cautioned against focusing too much on one quarter, saying its merchandise sourcing, pricing, stock distribution and inventory provisioning mean full-year results are a better measure of performance.
Long story
Trent’s results fit the pattern this season: companies serving price-conscious consumers are growing, but more carefully. Zudio’s low price points help when budgets are tight, since shoppers trade down from more expensive brands. But even at those prices, Trent is choosing to expand more slowly.
The December quarter, which includes Diwali and the wedding season, is Trent’s most important period. If same-store sales are strong during the festive season, the slower pace of openings will look like a sensible choice. If they are weak, investors will question whether Zudio’s rapid growth phase is over.
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