Tata Group–owned Trent Ltd is recalibrating its expansion playbook, focusing on higher store density in mature urban markets while continuing selective entry into smaller towns. Management believes this approach will help improve efficiency and capture demand as consumer sentiment shows early signs of recovery.
“Consumer sentiment today is neither euphoric nor despondent. It is gradually improving. The medium-term outlook remains positive,” said P Venkatesalu, Managing Director, Trent.
The strategy prioritises deeper penetration in existing big-city markets—mirroring global retailers such as Inditex and Primark—to benefit from scale-led efficiencies, faster inventory replenishment, and stronger negotiating leverage with landlords and vendors.
Zudio Remains the Growth Engine
Trent’s value-fashion format Zudio continues to anchor this strategy. The company has opened over 700 Zudio stores in the past four years, one of the fastest retail rollouts in India. As growth moderates across the apparel sector, Trent is shifting focus from rapid footprint expansion to store network optimisation.
Higher store density is expected to reduce last-mile costs and enable quicker response to local fashion trends—critical advantages in a competitive and margin-sensitive environment.
Brokerages View Trent Weakness as Cyclical
Despite strong operational momentum, Trent’s stock has fallen over one-third in the past year, recently trading near ₹3,975, close to its 52-week low.
Brokerages remain constructive. Macquarie maintains an Outperform rating with a ₹4,900 target, viewing recent sales softness as cyclical. It expects growth recovery in H2 CY26, driven by Zudio store revamps, RFID-led inventory efficiencies, and operating leverage benefits.
Oil Marketing Companies Set to Lead Q3 Earnings Growth
While consumption stocks await demand revival, oil marketing companies are expected to drive earnings growth in Q3, supported by a sharp rebound in refining margins and easing LPG under-recoveries.
Refining Margins Provide Tailwinds
Brokerages estimate OMC EBITDA to grow around 56% year-on-year in the December quarter, led by a sharp improvement in Singapore Gross Refining Margins (GRMs):
Singapore GRMs: Improved to $7.50 per barrel in Q3 from $3.80 per barrel in Q2
Stronger diesel, petrol and ATF cracks offset inventory losses from falling crude prices
LPG Compensation Boost
Lower propane prices and expected ₹5,000 crore LPG compensation for past under-recoveries are likely to provide further relief. Analysts at Kotak and ICICI Securities expect LPG-related losses to ease meaningfully, supporting profitability.
Food delivery and quick commerce major Swiggy continues to sharpen its focus on profitability and operational efficiency as competition in India’s online delivery market intensifies.
The company’s core food delivery business has shown steady improvement in contribution margins, driven by better order density, controlled discounting, and higher average order values. Swiggy has also been rationalising costs across logistics and customer acquisition to move closer to sustained profitability.
Meanwhile, Instamart, Swiggy’s quick commerce arm, remains a key growth driver. The platform is expanding its dark store network selectively, prioritising high-demand urban clusters while tightening unit economics. Faster delivery times and private-label expansion are central to Instamart’s strategy as it competes with rivals in the fast-growing 10–15 minute delivery segment.
