Trent Ltd, the Tata Group’s retail arm operating Westside and Zudio, announced its Q2 FY27 results on Thursday, prompting the stock to rise as much as 6.92% to ₹3,060 in early NSE trade on Friday, October 30. The company reported a 25% year‑on‑year increase in consolidated net profit to ₹468 crore for the September quarter, driven by revenue growth and operating leverage amid an inflationary backdrop. Consolidated revenue from operations climbed 22% to ₹5,873 crore, while operating EBITDA surged 37% to ₹785 crore, underscoring robust earnings support.

For the first half of FY27, consolidated revenue grew 20% to ₹11,628 crore and net profit rose 24% to ₹986 crore, with operating EBITDA up 35% to ₹1,633 crore. On a standalone basis, revenue from operations increased 23% to ₹5,788 crore in the September quarter, and operating EBITDA rose 37% to ₹791 crore. Net profit on a standalone basis grew 9% to ₹490 crore, reflecting a higher base in the prior year that included non‑operating gains from asset sales.

Trent disclosed pre‑tax gains on asset sales of ₹96 crore in Q2 FY26 and ₹109 crore in H1 FY26, with no material gains in the current‑year periods. The operating EBIT margin improved to 11.6% in the September quarter from 10.5% a year earlier, indicating margin expansion. Analysts noted that the relatively slower growth in standalone net profit compared with operating earnings partly reflects the higher base and non‑operating gains in the previous year.

Jefferies highlighted margin expansion that helped Trent deliver 37% YoY growth in pre‑Ind AS EBITDA, though the metric fell short of estimates. Fashion LFL growth improved to mid‑single digits despite seasonal shifts, but higher input prices could cloud near‑term margin outlook and weigh on demand. HSBC noted a 2% beat in Q2 EBITDA driven by gross‑margin resilience, and raised its FY28 EBITDA estimates by 2% while slightly lowering EPS estimates due to other income assumptions.

Citi reported revenue and EBITDA growth of 23% and 30% YoY, respectively, 4% and 1% above estimates. A 71% decline in other income restricted profit growth to 9%, 3% below estimates. Citi praised a 121‑basis‑point YoY expansion in gross margin to 44.5% amid raw‑material inflation, and noted declines in pre‑Ind AS rent and operating expenses per square foot, while employee costs per square foot rose 5%.

Bernstein highlighted Trent’s 22% YoY standalone revenue growth and 26% expansion in retail area, with gross margin improving 120 basis points YoY to 44.5% through premiumisation. The firm flagged slower store additions at Zudio and Westside, and a 3% decline in revenue productivity per square foot, marking areas for monitoring. Overall, analysts remain cautious about margin sustainability amid raw‑material and operating‑cost inflation in the second half of FY27.