Tata group firm Trent Ltd is all set to declare its March quarter results on Wednesday, April 22. Along with quarterly earnings, the broad of the Mumbai-headquartered retailer will consider a maiden bonus issue and announce dividend for the financial year 2025-26, if any. In its quarterly update, Trent reported provisional revenue of Rs 4,937 crore for the quarter, up 20 per cent year-on-year (YoY) over Rs 4,106 crore in the same quarter last year. Analysts largely see up to 14 per cent profit growth for Trent in Q4. They said commentary on demand trends, recovery in same store sales growth and Star’s performance will be keenly watched. 

Trent bonus shares

Trent has a history of paying dividends, but this would be the first time that the Tata group firm will consider bonus shares. The development comes, as the Trent stock has rallied 470.32 per cent the past five years -- even after accounting for over 45 per cent fall since October 2024.  Trent declared a final dividend of Rs 5 per share for FY25.

The Tata group stock, which had 4,83,585 individual investors with up to Rs 2 lakh nominal share capital, has rallied 30 per cent in the past one month, erasing its year-to-date losses. On Wednesday, the stock stood at Rs 4,354.80, down 0.81 per cent. 

Trent Q4 results

On HDFC Securities expects Trent to report 3.7 per cent YoY rise in profit at Rs 360 crore on 20.2 per cent YoY rise in sales at Rs 4,940 crore. It estimated 26 per cent YoY growth for Westside and 18 per cent growth for Zudio and is building in 70 basis points (bps) expansion in gross margin YoY at 43.3 per cent due to improving salience of Westside in the mix. The brokerage sees Ebitda margin at 16.6 per cent, up 60 basis points. 

Mirae Asset Sharekhan sees 14 per cent YoY growth in net profit at Rs 399 crore. It sees Ebitda margin at 16.1 per cent, up 16 basis points YoY. Kotak Institutional Equities sees net profit rising 8.3 per cent YoY to Rs 379.10 crore. It expects revenue growth to lag area growth on account of cannibalisation of revenues of older stores by new stores as well as incremental addition of stores in Tier II/III cities.

"We expect gross margin to increase by 10 bps YoY. We believe RFID-related cost savings may continue to play out in employee costs and may result in YoY Ebitda margin expansion despite weak SSSG. We model healthy Ebitda growth of 32 per cent YoY though note PBT growth is lower at 10 per cent due to higher depreciation charge," Kotak said.