Trent’s Q2 Boosted by Expansion, Cuts Stake in Zara JV
Trent Ltd, owned by the Tata Group, reported a consolidated net profit of ₹377 crore on revenue of ₹4818 crore in the second quarter, marking an 11% increase in profit. The company credited this rise to steady sales growth and the opening of several new stores.
“The consumer sentiment in the second quarter was relatively muted, and we also witnessed headwinds given unseasonal rains,” the company noted.
Stake Reduction in Zara Venture
Trent announced plans to reduce its stake in the joint venture Inditex Trent Retail India, which operates Zara stores in India. Inditex Trent is repurchasing 94,900 shares from shareholders via a tender offer. Trent has approved selling its 94,900 equity shares in the venture, lowering its ownership from 49% to 34.94%.
Expansion Across Brands and Markets
During the quarter, Trent launched 19 new Westside and 44 Zudio stores, alongside the youth-oriented fashion label Burnt Toast. The company closed the quarter with 261 Westside stores, 806 Zudio outlets, and 34 additional lifestyle stores. It continued expanding into tier-2 and tier-3 cities as well as developing markets near major metropolitan areas.
Operational and Strategic Outlook
Operating EBITDA increased to ₹575 crore, up 14% year-on-year. Chairman Noel Tata emphasized the company’s long-term focus on enhancing its product portfolio and improving customer experiences.
“We remain focused on portfolio growth, elevating our products and enhancing store experience for our customers,” said Noel Tata. “A cut in GST rates would augur well for our product categories over time.”
Author’s Summary
Trent’s second-quarter performance grew on store expansion and improved margins, while a reduced Zara JV stake signals renewed strategic focus on core retail growth.