₹18,000 Cr Market Cap Wipeout: Why Trent Shares Crashed 11% Today

Trent shares plunged as much as 11% on Tuesday, erasing nearly ₹17,773 crore in market capitalisation, after the Tata Group retailer's June-quarter business update fell short of Street expectations. While the company continued to expand its store network and reported double-digit revenue growth, investors were disappointed by slower-than-expected sales growth and a moderation in store additions, triggering sharp profit-booking after the stock's strong rally over the past few months.

The stock fell to an intraday low of ₹2,966 on the BSE after Trent reported standalone revenue of ₹5,666 crore for the June quarter, up 19% from ₹4,781 crore a year ago. However, the growth rate missed analysts' expectations of around 20.5-21% and marked the fifth consecutive quarter in which revenue growth remained below the 20% mark.

The decline comes after Trent had rallied around 23% over the past month and nearly 50% from its March 2026 lows, as investors had positioned for an acceleration in growth following a 20% revenue increase in the March quarter. Instead, the latest business update reinforced concerns that the retailer's high-growth trajectory may be moderating as its store network expands.

Revenue Growth And Store Expansion Disappoint

While Trent continued to add stores during the quarter, the pace of expansion also fell short of expectations.

The company added 20 stores during the quarter, comprising 19 Zudio outlets and only one Westside store. Trent ended the June quarter with 1,312 stores across formats, including 301 Westside stores, 982 Zudio outlets and 29 stores under other lifestyle formats.

Brokerages noted that the first quarter is typically the slowest period for store additions, but the slower pace nevertheless disappointed investors who had expected faster expansion following management's aggressive growth plans.

Another area of concern remained store productivity. Analysts pointed to continued weakness in revenue per square foot and expectations of softer same-store sales growth compared with the previous quarter. While overall revenue continued to grow, much of that expansion is increasingly being driven by new store openings rather than stronger sales from existing stores.

Brokerages Split On The Slowdown

Despite the sharp fall in the stock, most global brokerages retained their positive recommendations, arguing that the June-quarter weakness was largely seasonal rather than structural.

Macquarie maintained its Outperform rating with a target price of ₹3,600, although it acknowledged that same-store sales growth likely moderated from the March quarter and could weigh on near-term performance. The brokerage expects improving consumer demand and Trent's value positioning to support growth over time.

Bernstein also reiterated its Outperform rating with a ₹3,500 target price. It said standalone revenue growth of 19% came in below its estimate of 20.5%, while Westside store additions were slower than expected. However, the brokerage noted that the first quarter is historically the weakest period for expansion and therefore does not yet see any risk to the company's full-year store addition targets.

Morgan Stanley retained its Overweight rating with a target price of ₹3,151. The brokerage said revenue growth was slightly below its 21% estimate and expects some near-term weakness in the stock after its recent rally. It nevertheless expects margins to remain healthy and described the slower store expansion as a temporary moderation following a particularly strong fourth quarter.

Investor Focus: Seasonal Soft Patch Or Structural Slowdown?

The sharp correction has highlighted the growing debate around Trent's next phase of growth.

Bullish analysts argue that the current weakness reflects normal seasonality rather than a deterioration in fundamentals. They continue to cite Zudio's rapid expansion, healthy margin profile and Trent's strong positioning in organised value fashion as reasons to remain positive over the long term.

However, the more cautious view is represented by Citi, which continues to maintain a Sell rating with a target price of ₹2,733. The brokerage believes the latest quarter reinforces broader concerns around weakening revenue per square foot, slowing store productivity, rising competition in the value-fashion segment and the increasing risk of store cannibalisation as Trent expands into newer markets.

The differing views reflect a broader question facing investors. Store expansion continues to drive Trent's growth, but productivity metrics have remained under pressure. Whether Tuesday's sharp sell-off proves to be a buying opportunity or signals a more sustained slowdown will likely depend on whether growth in existing stores stabilises over the coming quarters.

For now, the Street appears divided. While most brokerages continue to see meaningful upside from current levels, investors are likely to closely monitor same-store sales growth, revenue per square foot and the pace of Westside and Zudio expansion when Trent reports its detailed June-quarter earnings later this month.