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Trent Q2 Profit Rises 11% on Margin Gains as Sales Miss Street, Board OKs Zara JV Buyback Tender

Stronger margins reflect cost discipline despite GST-related softness in demand.

Overview

  • Consolidated revenue grew 15.9% year on year to Rs 4,817.68 crore and net profit reached Rs 373.42 crore, both below Street estimates of Rs 4,998 crore and Rs 446 crore.
  • EBITDA increased about 26% to roughly Rs 813 crore, lifting the EBITDA margin to around 17.2% from about 15.4% a year ago.
  • Management flagged muted consumer sentiment and GST transition effects that weighed on quarterly trading conditions.
  • The store network expanded to 1,101 outlets across 251 cities as the company pushed deeper into tier-2 and tier-3 markets.
  • The board approved tendering 94,900 shares in Inditex Trent Retail India’s buyback as part of reducing its Zara JV exposure, and the stock closed down 1.15% on the day.