In a stunning market development that has shocked retail investors, Tata Group’s retail powerhouse Trent Ltd saw its shares nosedive by a staggering 24% on Monday. The stock, which houses popular brands Zudio and Westside, experienced its steepest single-day fall since March 2020, wiping out nearly ₹28,000 crore in market capitalisation in just one trading session. This dramatic plunge comes despite what appeared to be reasonably strong growth numbers in the company’s latest business update.
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Behind the Crash: What Triggered Trent’s Stunning Decline?
Trent’s share price tumbled to ₹4,491.8 during intraday trading on April 7, a sharp drop from its previous closing price of ₹5,561.3. The selloff was triggered by the company’s Q4 FY25 business update, which revealed a 28% year-on-year revenue growth to ₹4,334 crore – a figure that, while impressive in absolute terms, fell significantly short of analyst expectations.
“The market was expecting Trent to maintain its exceptional growth momentum of 37% seen in the previous quarter,” explained a market analyst following the retail sector. “The moderation to 28% growth, coupled with a steeper-than-usual seasonal decline of 9.7% quarter-on-quarter, raised concerns about potential demand weakness or aggressive discounting to clear inventory.”
Goldman Sachs, while maintaining a ‘buy’ rating on the stock, slashed its target price from ₹7,500 to ₹6,760, citing concerns over the weaker-than-expected sales growth. Morgan Stanley similarly noted that Trent’s Q4 business update revealed a continuation of the deceleration trend in like-for-like sales growth that had begun to emerge in Q3.
Expansion Continues Even as Growth Moderates
Despite the sales growth moderation, Trent’s aggressive expansion strategy continued at full steam. The company added an impressive 132 new Zudio stores and 13 Westside outlets in Q4 alone, bringing their total store count to 765 and 248 respectively.
For the full fiscal year 2025, Trent’s standalone revenue grew 39% year-on-year to ₹17,624 crore. The company added a total of 244 Zudio stores and 40 Westside outlets throughout the year, demonstrating its continued confidence in India’s retail consumption story despite the recent growth moderation.
Notably, Zudio has now firmly established itself as the company’s growth engine, overtaking the more premium Westside format in both store count and retail space. This shift reflects the company’s strategic pivot toward the value fashion segment, which has shown stronger consumer demand.
Perfect Storm: Global Market Turbulence Amplifies the Selloff
The timing of Trent’s business update couldn’t have been worse, coinciding with a broader market meltdown sparked by escalating trade tensions between the United States and China. On Monday, India’s benchmark indices Sensex and Nifty plummeted more than 5% as investors grew increasingly anxious about the potential impact of President Trump’s tariff hikes and China’s retaliatory measures.
“This was a perfect storm for Trent,” noted a market strategist. “The combination of slightly disappointing growth, analyst downgrades, and broader market panic created a feedback loop that magnified selling pressure on the stock.”
By mid-afternoon, the BSE Sensex was trading 3,205 points (4.25%) lower at 72,159, while the NSE Nifty had shed 1,039 points (4.54%) to hit 21,865 – creating an environment where even minor disappointments were severely punished by panicked investors.
What’s Next for Trent? Buy, Sell, or Hold?
Despite the dramatic selloff, the long-term investment case for Trent remains largely intact. Most analysts continue to maintain ‘buy’ ratings on the stock, with target prices suggesting significant potential upside from current levels. Of the 24 analysts tracking Trent, 17 still recommend buying the shares, with average price targets indicating a potential 34% upside over the next 12 months.
Goldman Sachs, while trimming its target price, remains positive on Trent’s long-term prospects. The brokerage expects growth to pick up in FY26, driven by:
- Strong store additions in the second half of FY25
- A potential increase in low-ticket discretionary demand
- Continued expansion of the highly successful Zudio brand
The current stock correction also offers a potential entry point for long-term investors who have previously been deterred by Trent’s lofty valuations. Prior to this correction, the stock had been trading at premium multiples that factored in perfect execution and uninterrupted growth.
Investor Perspective: Reasons for Caution and Optimism
For investors considering a position in Trent, there are several factors to weigh:
Reasons for Caution:
- Growth moderation after several quarters of exceptional performance
- Premium valuation despite the recent correction
- Potential for further market volatility amid global trade tensions
- Signs of deceleration in like-for-like sales growth
Reasons for Optimism:
- Continued aggressive store expansion, especially in the Zudio format
- Strong full-year revenue growth of 39% for FY25
- Maintained ‘buy’ ratings from most major brokerages
- Successful diversification of retail formats
- Strong backing from the Tata Group
The Bottom Line
Trent’s 24% stock crash offers an important lesson in market psychology and investor expectations. When a company consistently delivers exceptional growth, even a moderation to what would normally be considered strong performance can trigger a significant selloff, especially in a jittery market environment.
For long-term investors with a high risk tolerance, the current correction might present an opportunity to initiate or add to positions in what remains one of India’s premier retail growth stories. However, those with a shorter time horizon or lower risk appetite might want to wait for signs of stabilization before diving in.
The coming quarters will be crucial in determining whether Trent’s growth moderation is merely a temporary blip or the beginning of a more sustained trend. Investors would be wise to closely monitor the company’s Q1 FY26 results for evidence that the benefits of recent store additions are materializing as expected.
Are you a Trent shareholder affected by today’s crash? Do you see this as a buying opportunity or a warning sign? Share your thoughts in the comments below!
