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Trent margins shine in Q4; Nuvama raises target to ₹4,828 on earnings upgrade cycleBrokerage firm Nuvama raised its price target on Trent, citing a nascent earnings upgrade cycle that could support further multiple expansion.By Meghna Sen  April 23, 2026, 6:56:40 AM IST (Published)2 Min ReadShares of Trent Ltd. will be in focus on Thursday, April 23, after the company reported a strong operational performance for the fourth quarter (Q4FY26), with margins and profitability beating Street estimates.

Revenue came in at ₹5,028 crore, slightly below estimates of ₹5,060 crore. However, profitability was stronger than expected, with EBITDA at ₹927 crore against a poll estimate of ₹848 crore.

EBITDA margins expanded to 18.4% versus expectations of 16.8%, while profit after tax stood at ₹413 crore, ahead of estimates of ₹375 crore. On a year-on-year basis, revenue grew 19.2%, EBITDA rose 42%, and PAT increased 32.5%.

Margin expansion remained robust, with gross margins improving by 215 bps to 43.8% and EBITDA margins rising by 295 bps to 18.4%. Depreciation surged 73% to ₹376.5 crore.

Trent's like-for-like growth in the fashion portfolio remained in the low single digits for both the quarter and the full year.

Newer categories such as beauty and personal care, innerwear, and footwear contributed over 21% of revenues, while own brands accounted for more than 73% of Star's revenues. Online sales grew 25% and contributed over 6% to Westside revenues.

The company also announced a bonus issue in the ratio of 1:2 and received board approval to raise up to ₹2,500 crore via a rights issue.

Management remains optimistic on demand recovery, indicating that consumer sentiment is likely to improve in the coming months.

The company plans to expand its presence across existing and new micro-markets, while accelerating store additions under the Star format, where expansion has lagged.

Trent also pointed to emerging inflationary pressures in select raw materials.

The proposed fundraise will be utilised for store upgrades, new category incubation, supply chain and warehouse expansion, digital investments, and faster rollout of Star stores, including selective investments in retail real estate.

Nuvama Institutional Equities has maintained a 'Hold' rating on Trent, raising its price target to ₹4,828 from ₹4,543 earlier.  The brokerage firm cited a nascent earnings upgrade cycle that could support further multiple expansion.

The stock has rallied over 32% in the past month but remains down 47% from its all-time high of ₹8,234.

It currently trades at 72x FY27E and 60x FY28E earnings.

Shares closed 0.44% higher on Wednesday at ₹4,409.90 and are up around 3% so far this year.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsTrentTrent LtdTrent share price