Trent shares in focus after Tata Group co springs a positive EBITDA surprise in Q3

Shares of Tata Group's Trent Ltd. will be in focus on Thursday, February 5, after the company reported results after market hours on Wednesday evening, which were positive on the operating front.

The company reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of ₹1,081 crore, a growth of 27.6% compared to the same quarter last year. The number was also higher compared to the CNBC-TV18 poll estimate of ₹1,000 crore.

In its investor presentation, the management of Trent also highlighted that the medium-term outlook continues to remain positive, even as the Like-for-Like growth for the fashion portfolio was marginally negative during the quarter due to the festive season shift.

At the end of the third quarter, beauty & personal care, innerwear and footwear, contributed to over 21% of the company's topline.

For the Star business, own brands are now contributing to 74% of its topline and the management is now looking at accelerating the expansion of Star stores.

Shares of Trent had ended with gains of over 5% on Wednesday ahead of the results announcement, closing above the mark of ₹4,000 for the first time after January 12. The Tata Group stock is still down over 40% from its October 2024 peak of ₹8,345.

(To be updated with analyst commentary soon)