The shares of Trent gained nearly 2 percent in early morning trade on August 7 after the company's Q1 earnings boosted investor sentiment. The shares of the Tata Group company were trading at Rs 5,440 apiece.

Trent Ltd, which operates the apparel stores Zudio and Westside, reported a net profit of Rs 423 crore for the April-June quarter of the financial year 2026. This marks a 24 percent on-year rise from the Rs 342 crore net profit reported in the year-ago period.

The Tata Group company's revenue from operations meanwhile rose 20 percent on-year to Rs 4,781 crore in Q1 FY26, as against Rs 3,992 crore in Q1 FY25. The consolidated profit rose 9 percent year-on-year (YoY) to Rs 429.7 crore, excluding the exceptional items impact. The Operating EBIT margin for Q1 FY26 stood at 11.4 percent, as against 10.6 percent in Q1 FY25.

Should you buy, sell or hold?

Motilal Oswal retained its 'Buy' rating on the stock, but reduced its target price to Rs 6,400 apiece. This implies an upside potential of around 19.5 percent from the stock's previous closing price of Rs 5,356 apiece. The domestic brokerage noted that the company delivered a strong EBITDA growth of approximately 37 percent on-year, beating its estimate by around 17 percent, despite a continued deceleration in revenue growth and sharp decline in gross margin.

"The significant margin beat was led by effective cost control—employee expenses fell 7% YoY, while rental costs rose only 7% YoY, despite a 36% increase in retail area, reflecting the strength of Trent’s variable cost structure," Motilal Oswal said, while noting that its Star business underperformed with just 7 percent on-year revenue growth, flat like-for-like sales, and a 14 percent on-year drop in revenue per square feet.

"We continue to like Trent for its robust footprint additions, strong double digit growth, long runway for growth in Star (presence in just 10 cities), and potential scale-up of emerging categories (Beauty, Innerwear, Footwear, and LGDs). However, revenue growth acceleration remains a key trigger," it added.

Bernstein has an 'Outperform' call on the stock, with a target price of Rs 6,500 apiece. This implies an upside potential of more than 21 percent from the stock's previous closing price. The international brokerage however, also highlighted the slowing growth in revenue and significant reduction in revenue per square feet, CNBC-TV18 reported.

Citi kept an 'Buy' rating on the stock, but reduced its target price to Rs 7,150 apiece. This implies an upside potential of more than 33 percent from the stock's previous closing price. The international brokerage noted that while the revenue growth slowed down, it is still ahead of the other discretionary players, according to the note cited by the business channel.

Nuvama Institutional Equities maintained its 'Hold' rating on the stock, but reduced its target price to Rs 5,850 apiece. This implies an upside potential of more than 9 percent from the stock’s previous closing price. The brokerage said that the Tata Group company delivered strong margin improvement despite lower productivity.

Trent share price history:

The shares of the company later pared some gains to trade nearly 1 percent higher at Rs 5,396.50 apiece. The stock has gained nearly 8 percent in the past five days, but dropped nearly 2 percent in the past one month. It currently has a P/E ratio of around 125.