Jobaaj Stories
TRENT share price drops 4% after Q4FY25 result falls 56% YoY to ₹311 crore.
Shares of Trent Ltd, the retail arm of the Tata Group, dropped nearly 4% on Wednesday, April 30, after the company posted its Q4FY25 results. The sharp decline in the stock price came as the firm reported a 56% year-on-year fall in consolidated net profit, which came in at ₹311 crore, down from ₹712 crore in the same quarter last year. This was despite a healthy 37% rise in revenue.
There are several reasons behind this, let us discuss in detail:
➤ Sharp Drop in Net Profit:
Trent reported a significant 56% year-on-year decline in net profit, which triggered negative investor sentiment.
➤ Consumption Slowdown:
Trent’s hyper-growth trajectory is anticipated to be impacted by the current slowdown in discretionary spending in India. Consumer sentiment is being affected by the muted macroeconomic climate, especially in the retail industry.
➤ Mixed Reactions from Brokerages:
While large firms like Nuvama, Jefferies, and Kotak retained neutral-to-positive ratings, the majority reduced their target prices, citing risks such as demand weakness, brand cannibalization, and increasing competition. These adjustments reflect a decreased faith in the stock’s near-term performance.
➤ Aggressive Store Expansions Despite Margin Pressure:
Although the company is rapidly expanding its store network, this aggressive expansion has not proportionally translated into earnings growth, raising concerns about scalability and profitability.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should consult with a qualified financial advisor before making any investment decisions. Market data and financial results are subject to revision and updates.
