The brokerage, however, has maintained its ‘Buy’ rating on the stock.
HSBC remains constructive on Trent’s growth outlook, citing strong store expansion, particularly in its value fashion brand Zudio.
The brokerage said that around 200 Zudio store additions in FY26 provide healthy visibility for FY27, despite some moderation in store productivity.
It expects 18-20% growth going ahead, with limited competitive intensity acting as a key tailwind. However, like-for-like (LFL) growth for Zudio is pegged at a relatively modest 4% in FY27.
Earlier this month, Trent reported a strong business update for Q4 and FY26. Standalone revenue rose 20% YoY to ₹4,937 crore in the March quarter, while full-year revenue grew 18% YoY to ₹19,701 crore.
Revenue from sale of merchandise, excluding other operating income, increased 21% YoY in Q4 and 19% for FY26.
The company continued to expand its retail footprint aggressively. As of March 31, 2026, Trent operated 1,286 stores, including 300 Westside outlets, 963 Zudio stores, and 23 stores under other lifestyle formats.
Zudio added 198 stores during FY26, including 109 in Q4 alone, while Westside added 52 stores during the year.
Despite the recent uptick, the stock remains down 6% so far this year. Trent shares were last trading 1.68% higher at ₹4,045.10.
