Trent reports a 22% quarterly profit increase driven by aggressive expansion into Tier II and Tier III cities, offsetting rising costs amid shifting consumer spending patterns across India.
Trent reported a 22% rise in quarterly profit on Thursday as the Tata Group retailer continued to push Westside and Zudio into smaller Indian cities, offsetting pressure from higher costs. Revenue for the quarter ended June 30 climbed 18% to 57.55 billion rupees, while net profit reached 5.19 billion rupees, according to the company.
The performance underlines how India’s branded apparel market is broadening beyond the biggest urban centres. The Economic Times has reported that Trent is leaning heavily into Tier II and Tier III cities, with more than 80% of new Zudio outlets opening in those markets as consumer spending patterns shift. That strategy appears to be paying off as shoppers in smaller cities gain spending power and seek national fashion labels.
Trent ended June with 1,312 stores across 330 cities, up from 1,043 stores in 242 cities a year earlier. Its network now includes about 300 Westside stores and more than 980 Zudio outlets, with the chain’s expansion helping drive growth even as like-for-like sales in its fashion portfolio rose only in the low single digits, matching the previous quarter.
The company said it was using “a range of interventions” in sourcing and pricing after some input costs increased in recent months. It also warned that prolonged disruption in the Middle East could affect supply chains, commodity prices and inflation in the near term, though it gave no further details.
Analysts said the store-led model remains central to Trent’s momentum. Mayank Jain, a market analyst at Share.Market by PhonePe, said the retailer delivered a solid operational performance and that steady store additions and strong execution continued to support growth. Shares briefly gained as much as 3.7% after the results before slipping to slightly below flat, after a 12% drop last month when revenue growth missed market expectations.
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