Westside and Zudio drive Trent’s Q1 success with robust profit growth and rising margins

Westside and Zudio, the flagship retail brands of Tata Group’s Trent Ltd., have delivered a standout performance in the first quarter of FY26. The company surpassed analysts’ expectations on all major financial parameters, posting a consolidated net profit of ₹430 crore up nearly 9% from the same quarter last year.

This strong financial showing came on the back of a sharp 19% growth in revenue, which touched ₹4,883 crore in the April–June period, compared to ₹4,104 crore in Q1 FY25. The company’s operational efficiency further impressed investors, with EBITDA (earnings before interest, tax, depreciation, and amortisation) surging 38% year-on-year to ₹847 crore.

Margins improve while store expansion continues across key markets

Trent’s operating margin expanded significantly to 17.35%, up by 240 basis points from 14.94% in the previous year’s Q1. This margin expansion beat market estimates, especially considering that analysts had projected a possible dip.

The performance was supported by a combination of factors: strong cost control, strategic store expansion, and increasing customer traction for Westside and Zudio across urban and semi-urban markets.

During the quarter, Trent added 1 new Westside store and 11 Zudio outlets, bringing the total count to 248 Westside, 766 Zudio (including two international stores in the UAE), and 29 lifestyle concept stores. The company now operates across 13 million square feet of retail space, reflecting its growing physical footprint in India’s fashion retail segment.

Emerging categories strengthen Trent’s customer appeal

Trent continues to diversify its portfolio within Westside and Zudio, with emerging categories such as beauty, innerwear, and footwear contributing over 21% of total revenue. These segments are increasingly resonating with customers, and the brand’s focused approach to curating these categories has helped it stay relevant in a competitive retail environment.

The fashion portfolio, while registering low single-digit like-for-like growth, maintained steady momentum as per the company’s strategic focus on increasing revenue density in key markets rather than purely comparative store performance.

The management stated that their goal is to deepen penetration and build proximity to customers in high-potential regions. This approach, they believe, will create sustainable growth in revenue share and brand recall.

Long-term focus on direct-to-customer business gains traction

Chairman Noel Tata emphasized Trent’s long-term commitment to developing a sizable and scalable direct-to-customer (D2C) business model. He noted that both Westside and Zudio have achieved strong brand presence and consumer loyalty, and that the company is now in a position to leverage this base for more integrated customer engagement.

He added that despite growing competition and temporary fluctuations in market sentiment, Trent’s core strategy remains focused on building a resilient, consumer-focused business that can deliver consistent value over time.

Stock performance and outlook

Shares of Trent ended 1.3% higher at ₹5,320 on Tuesday, showing some recovery after a period of correction. The stock is still down around 4% over the past month and 25% year-to-date. Interestingly, it trades at a high valuation about 82 times FY27 earnings even after a 36% dip from its 52-week high. Also Read: NSDL Stock Ends at Rs. 936: 5 Big Takeaways from the Impressive Debut 

While short-term market sentiment was previously impacted by management’s comment that a 25% CAGR (Compound Annual Growth Rate) would be more sustainable going forward (compared to the past five-year CAGR of 35%), this quarter’s performance may restore some investor confidence.

Conclusion

Westside and Zudio continue to be the cornerstone of Trent’s growth story. With consistent revenue expansion, rising margins, and strategic focus on emerging categories and store density, the company has laid a strong foundation for sustained performance in the retail space. As Trent enters the rest of FY26, its retail brands are well-positioned to maintain momentum despite market volatility and competition.