Trent Q1 FY27 Results (NSE: TRENT)
Signal: Margin expansion
The read
The trajectory remains positive: consolidated revenue grew 18% YoY to ₹5754.71 Cr and PAT grew 22% to ₹519.01 Cr, while EBITDA margin expanded to 20.1% from 19%; the key operating proof point is continued Zudio-led footprint expansion, with 22 Zudio openings and 982 stores at quarter-end, although the release states that full-year results are more representative than Q1 seasonality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,754.71 Cr | +18% | N/A |
| EBIT | ₹748.57 Cr | N/A | |
| Net profit | ₹519.01 Cr | +22% | |
| EPS | ₹9.73 | +20.7% | |
| EBIT margin | 20.1% |
P&L walk
Consolidated revenue was ₹5754.71 Cr, up 18% YoY, while EBITDA was ₹1158.73 Cr and EBITDA margin was 20.1%, supporting PAT of ₹519.01 Cr, up 22% YoY; the release separately reported operating EBITDA growth of 33%.
Key positives
- Consolidated revenue reached ₹5754.71 Cr, up 18% YoY, while the company reported operating EBITDA growth of 33% and PAT growth of 22% to ₹519.01 Cr.
- EBITDA margin was 20.1%, up 200bps YoY, while standalone operating EBIT margin improved 140bps to 12.9%.
- Zudio added 22 stores in Q1FY27 and reached 982 stores, supporting the structural store-led growth runway.
- Emerging categories including beauty and personal care, innerwear and footwear contributed over 21% of revenue, while Westside online contributed over 6% of Westside revenue.
- Star's own brands contributed over 73% of revenue, indicating increasing exposure to higher-control private-label economics.
Key concerns
- The company states that full-year results are more representative than Q1 results, limiting the usefulness of quarter-only margin and earnings extrapolation.
- The release reports consolidated operating EBITDA of ₹848 Cr, while the XBRL financials report EBITDA of ₹1158.73 Cr; the definition difference should be reconciled when assessing operating profitability.
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