Trent’s expansion into smaller Indian cities drives 22% profit rise despite cost pressures

Trent reports a 22% quarterly profit increase as it accelerates store growth in smaller Indian cities, offsetting rising costs amid supply chain concerns.

Trent reported a 22% rise in quarterly profit on Thursday as the Tata Group retailer’s push into smaller Indian cities continued to offset pressure from higher costs. The company said revenue rose 18% in the quarter ended June 30, underscoring how its Westside and Zudio chains have remained the main engines of growth.

The Mumbai-based retailer posted profit of ₹519 crore and revenue of ₹5,755 crore for the period, Business Standard reported. By the end of June, Trent had 1,312 stores across 330 cities, up from 1,043 stores in 242 cities a year earlier, reflecting the pace of its store expansion outside major metropolitan markets.

That wider footprint comes as large Indian retail groups look beyond the biggest cities to capture demand from households with rising incomes. V-Mart Retail and Arvind Fashions have also been broadening their reach in smaller centres, according to Business Standard. Mayank Jain, a market analyst at Share.Market by PhonePe, told the publication that Trent delivered a solid operational performance and that steady store additions and strong execution supported its growth.

Still, Trent acknowledged cost pressures. The company said it was adopting a range of measures in sourcing and pricing after input costs rose in recent months, while warning that prolonged disruption in the Middle East could affect supply chains, commodity prices and inflation in the near term. Like-for-like growth in its fashion portfolio, a closely watched retail measure, remained in the low single-digit range, roughly in line with the previous quarter. Shares initially rose as much as 3.7% after the results before reversing course and trading slightly lower later in the day. The stock had fallen 12% a month earlier after revenue growth missed market expectations.