Trent's 40% slump: Is the retail giant's growth engine cooling?

• Trent Ltd has seen a sharp decline in 2025, becoming the worst-performing Nifty stock with a nearly 40% YTD plunge and over Rs 1 lakh crore market cap wiped out.
• The slump is attributed to its slowest revenue growth in four years (17% in Q2 FY26) and weak like-for-like sales, raising concerns about cooling growth and intensifying competition.
• Analysts expect Trent's growth to stabilize, with store expansion, particularly for Zudio, identified as the primary driver, despite subdued same-store sales growth.
• Zudio remains Trent's key growth engine, with plans for significant store network expansion and revamps to address competition and boost long-term productivity.
• Despite a sharp correction and premium valuations, analysts believe Trent's structural story remains intact, with new brands like Burnt Toast and the grocery format Star offering long-term potential.

Why It Matters: This story reveals how market dynamics are impacting a major Indian retail giant.