Trent Limited Q3 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Mixed
Executive Summary
Trent Q3 FY2026: Revenue ₹5,345.06 Cr (vs ₹4,656.56 Cr YoY), PAT ₹510.11 Cr (vs ₹496.54 Cr YoY)
In Q3 FY2026 (quarter ended 31st Dec 2025) consolidated revenue rose to ₹5,345.06 Cr, up from ₹4,656.56 Cr in Q3 FY2025, driven by higher merchandise sales across the Group. Consolidated net profit for the quarter was ₹510.11 Cr versus ₹496.54 Cr in Q3 FY2025, while basic EPS was ₹14.42 per share (Re.1) v/s ₹13.99 in Q3 FY2025. The Group recognised an exceptional expense of ₹26.11 Cr in Q3 FY2026 related to the new labour codes; management will reassess once Central/State rules are finalised. Balance-sheet metrics show improvement in total debt to total assets to 21.27% in Q3 FY2026, while the...Revenue (Consolidated) Q3 FY2026
₹5,345.06 Crvs ₹4,656.56 Cr in Q3 FY2025
Net Profit (Consolidated) Q3 FY2026
₹510.11 Crvs ₹496.54 Cr in Q3 FY2025
Operating Margin (Consolidated) Q3 FY2026
11.48%vs 10.67% in Q3 FY2025
Net Profit Margin (Consolidated) Q3 FY2026
8.79%vs 9.09% in Q3 FY2025
Basic EPS (Consolidated) Q3 FY2026
₹14.42 per sharevs ₹13.99 per share in Q3 FY2025
Total debt to Total Assets (Consolidated) Q3 FY2026
21.27%vs 24.20% in Q3 FY2025
Key Highlights
9
Consolidated revenue increased to ₹5,345.06 Cr in Q3 FY2026 from ₹4,656.56 Cr in Q3 FY2025, reflecting higher merchandise sales across the Group.
Consolidated net profit for Q3 FY2026 was ₹510.11 Cr compared with ₹496.54 Cr in Q3 FY2025, indicating modest absolute profit growth despite margin headwinds.
The Group recorded an exceptional expense of ₹26.11 Cr in Q3 FY2026 relating to incremental impact of new labour codes, recognised as an exceptional item in the quarter.
Net profit margin moderated to 8.79% in Q3 FY2026 from 9.09% in Q3 FY2025, reflecting the impact of the ₹26.11 Cr exceptional charge and higher depreciation year-on-year.
Operating margin improved to 11.48% in Q3 FY2026 from 10.67% in Q3 FY2025, supporting higher absolute profitability on stronger revenue.
Depreciation and amortisation expense rose to ₹366.74 Cr in Q3 FY2026 from ₹244.93 Cr in Q3 FY2025, contributing to lower net margin.
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Key Highlights
9
Consolidated revenue increased to ₹5,345.06 Cr in Q3 FY2026 from ₹4,656.56 Cr in Q3 FY2025, reflecting higher merchandise sales across the Group.
Consolidated net profit for Q3 FY2026 was ₹510.11 Cr compared with ₹496.54 Cr in Q3 FY2025, indicating modest absolute profit growth despite margin headwinds.
The Group recorded an exceptional expense of ₹26.11 Cr in Q3 FY2026 relating to incremental impact of new labour codes, recognised as an exceptional item in the quarter.
Net profit margin moderated to 8.79% in Q3 FY2026 from 9.09% in Q3 FY2025, reflecting the impact of the ₹26.11 Cr exceptional charge and higher depreciation year-on-year.
Operating margin improved to 11.48% in Q3 FY2026 from 10.67% in Q3 FY2025, supporting higher absolute profitability on stronger revenue.
Depreciation and amortisation expense rose to ₹366.74 Cr in Q3 FY2026 from ₹244.93 Cr in Q3 FY2025, contributing to lower net margin.
Paid-up debt capital on consolidated basis was ₹2,380.70 Cr in Q3 FY2026 versus ₹2,279.49 Cr in Q3 FY2025, while total debt to total assets improved to 21.27% from 24.20% YoY.
Current ratio declined to 2.25 in Q3 FY2026 from 2.69 in Q3 FY2025, indicating a moderation in short-term liquidity cover (current assets/current liabilities excluding debt capital).
Corporate actions
Guidance & Outlook
3
Management will reassess the accounting and measurement of employee benefits once Central/State rules under the new labour codes are notified, following recognition of a ₹26.11 Cr exceptional charge in Q3 FY2026.
The Group flagged no change to core retail strategy; integration of downstream subsidiary amalgamations is expected to be operationally neutral for consolidated performance in the near term.
No explicit capex guidance disclosed in the report; management commentary limits forward adjustments to accounting and regulatory compliance as rules are clarified.
Risks & Concerns
5
Regulatory risk from the new labour codes — the Group recognised an incremental ₹26.11 Cr charge in Q3 FY2026 but further materialisation depends on Central/State Rules yet to be finalised.
Margin pressure from higher depreciation — depreciation and amortisation rose to ₹366.74 Cr in Q3 FY2026 (from ₹244.93 Cr in Q3 FY2025), which reduces net margin headroom.
Liquidity metric moderation
Exceptional charges and accounting adjustments could create earnings volatility quarter-to-quarter until regulatory rules on labour codes are settled.
Occupancy and employee benefit expense remain sizable (occupancy ₹379.89 Cr; employee benefits ₹342.41 Cr in Q3 FY2026) which can weigh on operating leverage if revenue growth slows.
AI-generated analysis. May contain inaccuracies — verify against original sources.