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Growth deceleration continues; revenue up 17% YoY, broadly in line with expectations

* Trent’s reported standalone revenue (incl. GST) grew 17% YoY to INR50b. The implied net revenue of INR47.4b (+17% YoY) is likely to be broadly in line with our expectations.

* However, Trent’s revenue growth continued to decelerate in 2QFY26 (vs. 57%/40%/37%/29%/20% in last five quarters), likely due to slowing SSSG (selfcannibalization) and a high base effect, in our view.

* Trent’s 17% YoY revenue growth is primarily driven by ~33% YoY increase in the store count. Revenue per store declined ~9% YoY, indicating store-level sales cannibalization.

Slight pickup in store additions in 2Q, all eyes on acceleration in 2HFY26

* After subdued store expansion activity in 1QFY26, store expansion picked up pace in 2Q, with the total store count rising 33% YoY to 1,101.

* Westside added the highest number of quarterly stores on net in several quarters, with 13 net store additions, taking the total store count to 261 (+15% YoY).

* Zudio witnessed 40 net store openings in 2QFY26 (41 in 1HFY26 vs. 32 in 1HFY25) to reach 806 stores (+40% YoY).

* Trent launched a new format Burnt Toast during the quarter, which helped increase the other fashion format’s store count by 5 QoQ to 34 (+21% YoY).

* We note that store additions typically pick up pace in 2H, and all eyes would be on a further scale-up of Trent’s fashion footprint as store expansion remains its biggest growth driver amid weakening SSSG.

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