Shares of Tata Group retail flagship Trent Ltd recorded significant gains on Tuesday, October 6, advancing more than 10% to touch the upper circuit. The sharp upward movement followed the release of the company's provisional business performance update for the second quarter of FY27, which highlighted robust top-line momentum across its retail formats and a landmark store opening for its value apparel brand, Zudio.
Opening Surge and 12% Intraday Jump
Trading began on a strong note on the NSE, with Trent shares opening 8.5% higher at Rs 2,800 apiece compared with Monday's close of Rs 2,580. Market participants responded aggressively to the operational update, driving the stock to an intraday high of Rs 2,909, representing a gain of more than 12% over the previous close.
Standalone Revenue Climbs 23% to Rs 5,788 Crore in Q2
According to its regulatory filing with the exchanges, Trent posted a 23% year-on-year increase in standalone revenue from operations (excluding GST) for Q2 FY27, reaching Rs 5,788 crore against Rs 4,724 crore in the corresponding period of the previous fiscal year. Merchandise sales revenue, excluding other operating income, also registered an identical expansion of 23% during the quarter.
For the entire first half of FY27, Trent clocked operational revenue of Rs 11,454 crore, marking a 21% year-on-year increase and underscoring steady business growth. The second-quarter growth rate of 23% also reflected an acceleration compared to the first quarter of FY27, when standalone operational revenue expanded 18.5% year-on-year to Rs 5,666 crore.
Zudio Crosses 1,000 Outlets as Westside Adds Locations
The operational update highlighted rapid retail footprint addition, most notably the opening of the 1,000th Zudio store during the September quarter. On a net basis, Zudio added 17 outlets in Q2 FY27, bringing its total net store additions for the first half of the fiscal year to 36.
Concurrently, the company expanded its department store format, adding 10 new Westside locations during the quarter. Taking Westside, Zudio, and other lifestyle retail concepts together, Trent's aggregate store portfolio reached 1,342 locations as of September 30, 2026.
Context from First Quarter Financial Performance
Trent had previously delivered sound earnings for the quarter ended June 30, Q1 FY27. Consolidated net profit for that period had grown 26% year-on-year to Rs 532 crore from Rs 423 crore in the corresponding quarter of the previous year. Operating performance was supported by a 33% increase in EBITDA to Rs 1,110 crore, alongside a 210-basis-point expansion in the EBITDA margin to 19.6%.
Citi Maintains Sell Rating Citing Efficiency Metrics
Despite the market rally and higher-than-anticipated top-line growth, global brokerage Citi reiterated its 'Sell' recommendation on Trent shares, keeping its target price unchanged at Rs 2,950. In its assessment, Citi noted that revenue per square foot contracted by 8.4% year-on-year, though it acknowledged that this decline was narrower than its projected 12% drop. Furthermore, the brokerage pointed out that the net additions of 10 Westside outlets and 17 Zudio locations during the quarter trailed its initial expectations.
