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Table of Contents
Trent Limited, a member of the Tata Group, has evolved from its modest roots in the 1990s into a formidable force in India’s organized retail sector. Through sharp strategic execution, brand discipline, and a customer-first approach, Trent has created a retail ecosystem that combines value, trend-responsiveness, and operational excellence, positioning itself at the forefront of India’s consumption wave.
Navigating a Changing Retail Landscape
The Indian retail sector was valued at $1 trillion in 2025 and is projected to reach $2.2 trillion by 2034. The year 2025 posed challenges such as inflation and reduced discretionary spending. However, the industry remains optimistic due to India’s young population and rising per capita income. The fashion and lifestyle market is expected to grow at a CAGR of 10-12%, reaching ₹18 trillion by 2028. Omnichannel retailing is gaining popularity, and value-for-money products are becoming increasingly attractive to customers. Food and Grocery retail is anticipated to grow, driven by packaged food, health-conscious consumption, and the expansion of modern trade.
Moreover, the ongoing shift toward omnichannel retail—blending in-store, digital, and last-mile delivery—has unlocked new modes of engagement. Trent has been a frontrunner in this transformation, steadily integrating customer experiences across platforms.
Multi-Brand, Multi-Format Strategy
At the heart of Trent’s success lies its diversified retail architecture:
- Westside: The flagship format for mid-premium fashion and lifestyle, catering to diverse customer cohorts with in-house brands across apparel, home, beauty, accessories, and footwear. Standout labels include NUON, Wunderlove, Vark, Studiowest, and SOLEPLAY.
- Zudio: The company’s highest-growth fashion value brand. With 765 stores in 235 cities, Zudio’s curated collection of fast fashion at affordable price points has made it a key growth engine. Over 300 new stores were added in FY25.
- Star: A modern grocery chain focused on fresh produce, staples, and private-label packaged foods. With 78 stores (mostly co-located with Zudio), it has seen owned-brand penetration rise to 73%. Strategic partnerships with over 1,000 farmers enable over 80% of vegetable and 70% of fruit sourcing to be direct.
- Utsa and Samoh: Ethnic and contemporary collections for niche lifestyle seekers, offering more premium experiences. Samoh added three new stores in FY25.
- Zudio Beauty: An early-stage rollout aimed at the affordable beauty and personal care segment.
Trent’s proprietary label strategy ensures complete design, sourcing, and merchandising control, translating to better margins, faster product innovation, and stronger customer stickiness.
Operational Efficiency & Tech-Driven Agility
Trent has embedded advanced digital tools across its value chain, including:
- SAP for enterprise resource planning
- PLM (Product Lifecycle Management) for agile design-to-shelf turnaround
- RFID tracking for inventory accuracy
- POS systems for real-time sales analytics
- Data Lake & AI for customer personalization and demand forecasting
- TMS (Transport Management System) for logistical optimization
This tech-backed operational backbone has enabled Trent to efficiently scale its footprint while maintaining high gross margins (43–51% range for the past five years) and lean inventory management (77 inventory days).
The company’s shrinkage rate—just 0.37% in FY25—is best-in-class compared to global benchmarks (Walmart: 1.01–1.99%, U.S. retail average: 1.6%).
Expanding Workforce and Retail Network
As of March 31, 2025, Trent employed 27,887 people. This workforce expansion has paralleled its rapid store growth while benefiting from productivity enhancements.
Store Presence:
- Westside: 248 stores across 86 cities (added 13 in FY25)
- Zudio: 765 stores across 235 cities (added 320)
- Star: 78 stores in 10 cities (added 12)
- Utsa: 20 stores in 13 cities (contracted by 2 but expanded to 1 new city)
- Samoh & Zudio Beauty: 5 stores each across 4 cities
Zudio’s reach across 30 states and UTs highlights Trent’s capacity to scale responsibly across geographies and formats.
Category Expansion & Sales Velocity
Trent’s success is no longer apparel-only. It has witnessed explosive growth in:
- Beauty: 81 million units sold
- Innerwear: 50 million units sold
- Footwear: 27 million units sold
Sales per square foot have doubled over four years—an indicator of higher productivity per retail asset, especially in high-traffic urban zones.
Financial Performance: Resilient and Scalable
The company’s revenue quadrupled from ₹4,498.02 crore in FY21-22 to ₹17,134.61 crore in FY24-25. Despite improving its Net Profit Margin over the years, it fell from 11.94% in FY23-24 to 8.96% in FY24-25.
In FY24-25, Trent spent ₹126.76 crore on Advertisement and Sales Promotion, accounting for 0.74% of its revenue from operations. This trend has remained consistent over the years.
As Trent rapidly expands its store network, employee benefits expenses are also rising. In FY24-25, these expenses amounted to ₹1,308.45 crore, representing 7.64% of revenue from operations. The growth in employee benefits expenses since FY21-22 has been lower than revenue growth, aiding the company’s profitability.
Rent and lease costs are major expenses for Trent Limited. With rapid expansion, rent expenses increased by 39.27% in FY24-25 compared to FY23-24. In FY23-24, rent expenses were ₹1,089.15 crore, 59.29% higher than FY22-23. Rent expenses accounted for 8.85% of revenue from operations in FY24-25.
FY2024–25 Financial Highlights:
- Revenue: ₹17,134.61 crore (up from ₹4,498.02 crore in FY21–22)
- Net Profit Margin: 8.96% (down from 11.94% in FY24 due to cost pressures)
- Employee Benefits Expense: ₹1,308.45 crore (7.64% of revenue)
- Rent Expense: ₹1,089.15 crore, up 39.27% YoY, and 8.85% of revenue
Key Ratios:
- TTM PE: 135.76 P/B: 37.66
- ROE: 28% ROCE: 31% ROA: 16.42%
- Debt/Equity: 0.38 Working Capital Days: 31
Marketing spends remain minimal at ₹126.76 crore or 0.74% of revenue, a testament to Trent’s focus on organic brand building and repeat customers.
Strategic Alliances & Premium Play
Trent operates 22 Zara stores through its JV with Inditex, covering 13 cities in India. In FY25, Trent diluted its stake in Inditex Trent Retail India Pvt Ltd from 49% to 34.94%, signaling a strategic shift in capital deployment. It retains a 20% stake in Massimo Dutti India Pvt Ltd, giving it access to premium fashion retailing.
Conclusion: Scaling Profitably with Purpose
Trent stands out not just for its scale, but for the discipline and design behind that scale. Its model offers the trifecta of:
- Proprietary brands for margin control
- Affordable and aspirational positioning across socio-economic tiers
- Deep integration of tech and supply chain agility
While near-term profitability pressures stem from aggressive store rollouts and rising rents, the company’s efficient working capital cycle, low shrinkage, high brand traction, and robust same-store sales growth offer a strong long-term foundation.
In the evolving Indian retail story, Trent isn’t merely a participant—it is actively shaping consumer preferences and retail benchmarks. With a healthy balance sheet, expanding portfolio, and relentless innovation, Trent Limited is poised to remain one of the most dynamic and value-accretive retail businesses in the country.
Also Read: Trent Limited – The retail biggie from the house of Tatas
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References
- Trent Limited Annual Report for FY24-25
- Trent Limited Annual Report for FY23-24
- Trent Limited Annual Report for FY22-23
- Trent Limited Annual Report for FY21-22
- Trent Limited Annual Report for FY20-21
- Trent Limited Annual Report for FY19-20
- Trent Limited Annual Report for FY18-19
- Trent Limited Investor Presentation FY24-25
- Trent Limited page on Screener.in
- Trent Limited page on MoneyControl
- Westside online store
- Trent Limited website
