Trent reports strong Q1 FY27 growth with Zudio driving store expansion beyond major metros
Tata Group retailer Trent reported a 26 per cent year-on-year rise in standalone net profit to Rs 532 crore for the quarter ended 30 June 2026, while revenue from operations grew 19 per cent to Rs 5,666 crore. The company added 22 Zudio stores during the quarter, with more than 80 per cent of new outlets opening in tier 2and 3 cities, as it continued to expand its fashion retail network.
Operating Ebitda increased 36 per cent year-on-year to Rs 847 crore, while operating EBIT margin improved to 12.9 per cent from 11.5 per cent a year earlier. The improvement came despite a challenging macroeconomic environment and pressure from higher input costs.
On a consolidated basis, revenue increased 18 per cent to Rs 5,755 crore, while profit after tax rose 22 per cent to Rs 518 crore during the quarter.
Trent added one Westside store and 22 Zudio outlets during the quarter, including one Zudio store in the UAE. It also consolidated three Zudio stores during the period and expanded its presence into nine new cities.
The company’s fashion portfolio now comprises more than 1,300 large-format stores across 330 cities, including three cities in the UAE. The network includes 301 Westside stores, 982 Zudio outlets and 29 stores across other lifestyle formats.
More than 80 per cent of the Zudio stores added during the quarter were in Tier 2 and 3 cities, indicating the retailer’s continued expansion beyond metropolitan markets. Trent said the annual pace of store additions is expected to remain broadly consistent, although openings may vary between quarters depending on project timelines.
Emerging Categories Add To Revenue
Trent said emerging categories such as beauty and personal care, innerwear and footwear contributed more than 21 per cent of revenue during the quarter. Online sales through Westside’s digital platform and Tata Neu accounted for more than 6 per cent of Westside’s revenue, indicating a growing contribution from digital channels alongside the company’s physical store network.
The company’s Star grocery business added five stores during the quarter, taking its network to 86 stores across 12 cities. Trent said its own brands contributed more than 73 per cent of Star’s revenue, while store-level economics continued to improve.
The comments come as Trent continues to expand Zudio’s presence in smaller cities, where newer stores can take time to reach mature revenue levels.
Chairman Noel N Tata said Trent’s performance during the quarter remained encouraging despite macroeconomic volatility and geopolitical developments. “The business delivered encouraging performance during the quarter notwithstanding continuing macroeconomic volatility and geopolitical events. Our brands continue to represent only a small share of the overall addressable market, providing significant headroom for growth across geographies and customer segments,” Tata said.
