Trent Q1 FY27 Results Analysis: PAT Grows 25.8%, EBITDA Margin Expands 208 bps

Trent Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 5,666.30 Cr (+18.51% YoY) and PAT growth of +25.84% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Trent delivered 18.5% revenue growth and 25.8% PAT growth, with EBITDA margin expanding 208 bps YoY. Store additions accelerated to 20 in Q1 (vs 1 in Q1FY26) and balance sheet strengthened with debt/equity at 0.29. However, revenue growth decelerated from 20% and depreciation continued to rise.

Key Investment Insights

Key Positives

• Revenue grew 18.5% YoY to Rs.5,666 Cr, driven by store expansion and stable consumer demand.
• PAT increased 25.8% YoY to Rs.531.77 Cr, with EPS rising 25.9% to Rs.9.97.
• EBITDA margin expanded 208 bps YoY to 19.60%, helped by 149 bps gross margin improvement.
• Operating margin improved 140 bps YoY to 12.92%.
• Net store additions of 20 in Q1 (vs 1 in Q1FY26), total stores at 1,312.
• Debt/equity ratio improved to 0.29 from 0.34 a year ago, reflecting a stronger balance sheet.
• No exceptional items in Q1; reported PAT equals normalized PAT.

Risk Factors

• Revenue growth decelerated from 20% in Q4FY26 to 18.5% in Q1FY27, indicating a slight slowdown.
• Depreciation expense rose 38.7% YoY, with D&A as % of revenue increasing 101 bps to 6.95%.
• Occupancy cost jumped 59.2% QoQ (seasonal, but still a cost headwind).
• DSCR at 0.97 is below 1.0, though mechanically due to Ind AS 116 lease accounting.
• Subsidiary/associate contribution turned negative (Rs.12.76 Cr drag vs +Rs.7.10 Cr in Q1FY26).