Last year, Trent looked unstoppable. Zudio was on every corner. Westside had found its digital groove. And the stock? It kissed ₹8,345 and walked like it owned Dalal Street.
But in 2025, the mood’s changed. The stock’s down over 30%. One bad Monday shaved off 15% in a flash. Turns out, even market darlings hit turbulence when growth loses a bit of its flair.
Growth wasn’t the problem. Expectations were.
In FY25, Trent’s revenue rose 39% to ₹17,624 crore. Net profit jumped to ₹1,935 crore. Store count? A jaw-dropping 1,043 across India—including 765 Zudio and 248 Westside outlets.
They even added 132 new Zudio stores in a year. That’s more stores than most fashion brands have in total.
So what’s the problem?
Two things: margins, and mood.
Zudio expanded fast. Maybe too fast.
Zudio was the star. Sub-₹500 fashion, fast inventory turnover, mass appeal. But cannibalisation crept in. Too many stores, too close together, eating into each other’s pie.
Revenue mix shifted too. Zudio’s contribution dipped from 57% to 49%. Westside is picking up steam—especially online, where sales jumped 45%. But Zudio’s slowdown was enough to spook the charts.
And aggressive expansion meant rising costs—staff, rentals, logistics. EBITDA margins came under pressure. Investors, used to 162% margin CAGR, didn’t take it well.
Base effect is the villain nobody talks about
Here’s the twist: Trent added more revenue this year (₹4,955 Cr) than last year (₹4,456 Cr). But percentage-wise growth looked weaker.
When you grow off a ₹13,000 Cr base, the 45%+ jumps don’t come easy. That’s base effect 101. And that’s what’s clouding the real progress under the hood.
The engine is still running: Westside is quietly building an omnichannel beast. Zudio still leads in volume. Newer formats like Samoh and Misbu are exploring premium niches. Star Bazaar is trimming its losses with help from Tesco.
Trent isn’t slowing down. It’s shifting gears.
And now? The fundamentals are solid. ROE? 27%. ROCE? 23.8%. Debt? Falling. Inventory days? Shrinking.
But the real question is: can Trent keep compounding at this scale… while fending off Shein, Yousta, and its own shadow?
The big question: can Trent continue to grow profitably while maintaining efficiency, avoiding store saturation, and staying ahead of new competition like Yousta and Shein?
The expansion isn’t slowing—but the expectations game just got harder.
