Tata Group’s retail arm, Trent Ltd, witnessed a sharp sell-off on July 4, 2025, with its stock plunging over 11% in intraday trading. The sudden dip came just a day after the company’s Annual General Meeting (AGM), where management updates failed to meet investor expectations, sparking widespread concern across the market.
What Went Wrong?
At the AGM, Trent reported a 20% year-on-year revenue growth for Q1 FY26, reaching ₹5,061 crore. While this figure may seem robust, it fell short of the company’s own long-term growth aspiration of 25%+, and significantly below its five-year CAGR of 35%. This underwhelming update triggered a wave of downgrades from analysts.
Brokerage Downgrades and Valuation Concerns
Leading the bearish sentiment was Nuvama Institutional Equities, which downgraded Trent from “Buy” to “Hold” and slashed its target price from ₹6,627 to ₹5,884. The firm also cut revenue estimates for FY26 and FY27 by 5–6%, and EBITDA projections by 9–12%, citing a mismatch between Trent’s current performance and its premium valuation2.
Growth Levers Yet to Stabilize
While Trent has ambitious plans to add 250+ stores across formats in FY26—including Westside, Zudio, and Star Market—analysts remain cautious. New verticals like Zudio Beauty and Star Bazaar are seen as potential growth drivers, but they are still in early stages and need operational stability before scaling3.
Macroeconomic Headwinds
Adding to the pressure are broader retail sector challenges. Inflation and subdued discretionary spending have impacted consumer sentiment, making it harder for even well-established players like Trent to maintain momentum.
Market Impact
The stock hit a low of ₹5,495 on the BSE, dragging its market capitalization below ₹2 lakh crore. Notably, prominent investor Radhakishan Damani reportedly saw a ₹310 crore erosion in his holdings due to the crash.
Despite the short-term turbulence, Trent’s long-term vision remains intact. However, the coming quarters will be crucial in determining whether its aggressive expansion and new ventures can reignite investor confidence.