Trent Share Price Target 2026: Motilal Oswal Maintains ‘Buy’ Rating

Motilal Oswal maintains a highly bullish outlook on Trent Limited, forecasting a gain of up to 12%

Motilal Oswal Financial Services maintained its “buy” rating on Trent Limited, the retail arm of the Tata Group, and kept its target price unchanged at ₹3,500 per share. The financial services firm emphasized that the retailer is just at the beginning of a significant, long-term expansion phase. This update comes just after the company’s recent Annual General Meeting (AGM), where leadership highlighted significant market share opportunities.

Despite its significant presence, Trent holds only a 2% share of India’s highly fragmented fashion and lifestyle retail market. By 2023, management had outlined a broad roadmap to increase its total revenue 10-fold and achieve corresponding profit growth. The brokerage emphasized that the company is progressing faster than previously planned, and has already reported a more than 2.5x increase in total revenue and a 3x increase in net profit.

The company’s operationally aggressive stance is strongly supported by its recent fourth-quarter financial performance. For Q4 FY26, Trent reported a 33% year-on-year increase in net profit to ₹413.1 crore from ₹311.6 crore in the same quarter last fiscal year. Total quarterly revenue from operations increased by 19.23% to ₹5,027.99 crore, while operating earnings (EBITDA) increased by 44% to ₹653 crore.

To drive the next major growth leg, the retailer is relying heavily on aggressive store rollouts for its men’s clothing format. Management stated a long-term goal of expanding its premium lifestyle brand, Westside, from its current network of 300 stores to approximately 700 retail outlets across 97 cities.

Westside, which successfully added 52 stores during fiscal year 2026, benefits significantly from its unique 100% private-label model, fast inventory turnaround times, and heavy reliance on domestic manufacturing, which handles more than 80% of its sourcing.

Additionally, Zoodio, a value-fashion format, has a significant target of expanding from its current approximately 960 locations to approximately 5,000 stores nationwide. While rapid store density in specific regions has temporarily slowed its like-for-like (LFL) sales growth metrics, the company considers this a strategic, well-considered decision to maintain regional dominance. Going forward, management expects LFL growth to return to double-digit figures.

The brokerage noted that the food and grocery sector represents a significant untapped opportunity for Trent, accounting for approximately 65% ​​of India’s total retail industry. The firm is preparing to increase its expansion pipeline for the Star format, aiming to open 25 to 40 new grocery stores annually from fiscal year 2027.

This growth follows a carefully executed operational restructuring phase that significantly optimized the product assortment of existing Star stores, resulting in two to three times more product throughput at the reconfigured sites. The grocery chain’s long-term operating margins are strongly supported by a large share of high-margin private labels, which currently drive 73% of its total sales volume.

In addition to its core brands, Trent continues to focus on business innovation by enhancing experimental formats such as Samoh (premium ethnic wear) and Burnt Toast (youth clothing). The retailer also plans to enter international markets and expand into high-potential retail segments such as lab-grown diamonds, beauty, innerwear, and footwear. Furthermore, the company recently rewarded its investors by announcing a final dividend of ₹6 per share and a 1:2 bonus equity share issue.