Downgrades

With a 10% upside potential from the CMP, we maintain our BUY rating on the stock.

Trent’s revenue growth continued to decelerate in 2QFY26 (+17% YoY), as ~43% YoY area addition growth was offset by sharp ~17% YoY decline in revenue per square foot, indicating store-level sales cannibalization.

Aditya Birla Fashion and Retail (ABFRL) reported a weak 2Q as higher A&P spends (up 200bp YoY) and losses in TMRW led to a 14% decline in reported EBITDA (37% miss). Pre-Ind AS EBITDA for 1HFY26 declined ~12% YoY.

We recommend a BUY rating on the stock with a TP of Rs 845/share, implying an upside of 10% from the CMP.

With a 0% upside from the CMP, we maintain our HOLD rating.

Aditya Birla Fashion and Retail (ABFRL) delivered a better-thanexpected operational performance in 1QFY26, with revenue growth of 9% YoY (strong performance in Ethnics and TMRW) and EBITDA growth of 25% YoY (~22% beat,) driven by 16-24pp improvement in profitability for Ethnics and Luxury Retail.

Trent Ltd is a leading Indian retail company that operates stores under the Westside, Zudio and Star Bazaar brands, specialising in apparel, footwear, accessories, toys, games and other lifestyle products....

Trent’s Q1FY26 performance beat expectations led by higher EBITDA margin than expected, while SSSG moderated to low-single digits versus mid-single digits in Q4FY25.

With a 15% upside potential from the CMP, we maintain our BUY rating on the stock.

Author: Vincent K A - Sr. Research Analyst improving the white label product mix, will reduce margin pressure in the future. We a target price of Rs.4,657 by valuing it on a DCF basis, implies 74x on FY27 EPS....

Shoppers Stop (SHOP) revenue grew 6% YoY in 1QFY25 (vs. +8%/+2% YoY in 3Q/4Q), led by 5% LFL growth in Departmental format and ~2x growth in INTUNE.

Trent reported revenue growth of 40% YoY, aided by footprint expansion (29%/40% YoY store/area additions) and double-digit LFL (SPSF up 4% YoY).

GM&A share at 24.7% for 1QFY26 up by 210bps vs 22.26% in FY25 We cut our FY26/FY27 EPS estimates by 1.0%/1.9%, respectively, as we expect margin pressures to persist due to 1) Continued high competitive intensity...

Despite robust growth over the past few years (6.5x revenue growth over FY19-25), management indicated that Trent’s share in India’s fashion and lifestyle retail industry remains in low-single digits.

Considering the company's promising growth outlook, we recommend a BUY on the stock with a potential upside of 10% from the CMP.

The demerger between ABFRL and ABLBL became effective from May 1, 2025. The demerged ABFRL reported high-single digit revenue growth and an improvement in profitability across businesses in Q4FY25.

With a 2% downside from the CMP, we maintain our HOLD rating.

Aditya Birla Fashion and Retail’s (ABFRL) combined revenue grew 6% YoY, driven primarily by robust growth in ABFRL (demerged). EBITDA increased significantly, driven by improved profitability in Ethnic and Pantaloons and demerger-related adjustments.

Quarterly Update Q4FY25

Trent’s Q4FY25 performance beat expectations led by higher EBITDA margin than expected, while SSSG moderated to mid-single digits versus high-single digits in Q3FY25.