Trent Ltd., the retail arm of the Tata Group, continues to command investor attention, but recent earnings and commentary suggest that the company may be entering a more measured phase of growth after a period of sharp expansion.

In a conversation with ET Now, Jignanshu Gor from Bernstein India offered a detailed breakdown of the company’s Q4 performance, shedding light on profitability trends, margin dynamics, and the road ahead for its key brands, Westside and Zudio.

Seasonal Volatility Masks Underlying Stability
Addressing the sequential drop in profit—from Rs 513 crore to Rs 413 crore—Gor emphasised that quarter-on-quarter comparisons may not present the full picture.“So, Trent, the way we read Q4 numbers is largely on a YoY basis because there is seasonality across the quarters, especially the festive quarter does very well for apparel players in general,” he said.

He noted that margins have improved due to two primary factors: operational efficiency and brand mix.
“Margin—I was overhearing the conversation, and I broadly agree—a large part of the margin uptick that we are seeing is for two reasons. One is the employee cost reduction or optimisation that the company has been doing, with a focus on RFID in all its stores. Now it is 100% everywhere—you see a tag has an RFID sticker on it—which reduces the number of people that you need overall.”
“The second big reason is that Westside has done better than Zudio, and hence your gross margins have been better this year versus last year.”
However, he flagged a key concern: declining productivity.

“When you look at a more fundamental metric—revenue per square foot—it is lower YoY, and that tells you what Sajeet was mentioning: that we do not expect the margins to improve from here. Even if they are able to sustain it here, it will be very positive for the stock.”

Zudio’s Expansion: Still Room to Grow
Zudio, Trent’s fast-fashion value brand, now operates 963 stores, including its first international outlets in the UAE. While rapid expansion often raises concerns about diminishing returns, Gor believes the runway remains long.

“The way we think about expansion in the Indian context is that ROCE remains constant, but value per store does not go up—it is not better in a smaller town,” he explained.

“So, when a company goes from a large city to a small city, they have lower revenue per square foot, but they also have lower costs per square foot. Typically, margin profiles are similar in a smaller town, and initially, when you are a new introduction to a town, they are actually better because there is a lack of organised options as good as Zudio.”

He added that while incremental store value may decline, capital expenditure requirements also reduce proportionally.

“When does expansion stop? We think there is still a lot of headroom for growth. Today, they are in around 300 cities. Some of the larger players have gone to 600 cities already.”

Westside’s Outperformance Not Just About Pricing
Westside’s stronger performance relative to Zudio has raised questions about consumer stress in lower price segments. However, Gor believes the explanation is more nuanced.

“So, I think that is one angle. Maybe there are two other factors for Westside’s share of Zudio revenue increasing,” he said.

“One is just faster store additions. This year, Westside added 50-plus stores, which is higher than what they have added in any of the previous years.”

“The second is that the competitive intensity for Westside has been softer than for Zudio. On Westside, we feel Shoppers Stop, Pantaloons, and Lifestyle are all struggling with their own value proposition, whereas Westside has sort of figured out a place in the consumer’s psyche.”

Fundraise Signals Strategic Shift
Trent’s Rs 2,500 crore fundraise has sparked debate around its free cash flow position. Gor dismissed concerns about core business sustainability.

“Yes, so we do not think it is for the core business because you are right—in our view, the core business, despite increasing capex over the years, has been generating positive free cash flow,” he said.

“This year, approximately Rs 300 crore of free cash flow was generated despite capex—not just in stores but also increased office space capex in their Mumbai offices.”

Instead, he suggested the funds may be earmarked for expansion beyond existing operations.

“So, we think this is for either inorganic growth or faster adoption of Star, for which they do not have capex. That is what is mentioned in the rights issue as well.”

Valuation Reset After Sharp Correction
After a significant correction from its highs, Trent’s valuation is now being reassessed by the market.

“We think that a 20% growth stock will get anywhere around a 60 to 65 multiple, and that is the benchmark that we go with,” Gor explained.

“That is why we think a fair price for this over the next 12-month period is around Rs 5,000, from the current value of Rs 4,400–4,500.”

Near-Term Outlook: Cautious Optimism
Looking ahead, Gor struck a balanced tone—highlighting both risks and recovery potential.

“Just consumer demand, but also the supply for apparel players—because Trent runs on a thinner working capital cycle or inventory cycle—they have sort of 90 days of inventory versus most of the others running at 150 to 180 days. So, supply chain disruptions will hurt Trent first,” he noted.

He also expressed caution about near-term demand.

“So, we do think that, given where the macro situation is—with inflation coming in, which the company also mentions—we are a little cautious on near-term demand for Q1, Q2 of FY27.”

Still, there are signs of recovery on the horizon.

“We expect Zudio to recover now on their SSSG/LFL as the base effect becomes better for Zudio stores going forward in FY27 as well.”

Summing up, he added: “We remain cautiously optimistic, but we are not saying that we expect a 25–30% growth number to come back. It will be a far more cautious story going forward.”

When asked directly about near-term growth, Gor concluded: “We are building in 19% to 20% right now.”

This article was written by

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SYDNEY — Australian shares posted mixed results Thursday with the benchmark S&P/ASX 200 index closing down 0.57%, yet a handful of standout performers bucked the broader weakness, delivering double-digit gains that highlighted selective buying in healthcare, resources and consumer stocks amid shifting policy expectations and commodity moves.

The session’s biggest risers within the ASX 200 underscored the market’s rotational nature, as investors rotated toward names perceived to benefit from potential aged care funding improvements in the recent federal budget while others rode commodity tailwinds or company-specific momentum. Leading the pack was aged care operator Regis Healthcare Ltd, whose shares exploded higher on renewed optimism around government support for the sector.

Here are the top 5 gainers among ASX 200 constituents on April 23 (percentage gains based on closing prices):

1. Regis Healthcare Ltd (ASX: REG) — up 16.39% to A$7.03 The standout performer added 99 cents in heavy trading as the market digested fresh details from the federal budget that could ease funding pressures on residential aged care providers. Regis, one of Australia’s largest listed operators, has been expanding aggressively through acquisitions and now stands to benefit from possible increases in accommodation payments and incentives for new bed construction. The stock had hit a multi-year low near A$5.64 just days earlier after breaking key technical support, making Thursday’s rebound particularly sharp. Volume surged well above average, signaling strong institutional and retail interest.
2. Treasury Wine Estates Ltd (ASX: TWE) — up around 16.5% to approximately A$4.72 The wine giant posted one of its strongest single-day moves in recent memory, closing near session highs after reports of solid export demand and easing concerns over global trade tensions. Treasury Wine has been navigating shifting consumer preferences and currency impacts, but Thursday’s surge reflected renewed confidence in premium wine sales, particularly into key Asian markets. The move came with elevated volume, suggesting traders viewed the stock as oversold following earlier weakness.
3. New Hope Corporation Ltd (ASX: NHC) — up approximately 5.5% The thermal coal producer gained ground as oil prices remained elevated near or above US$100 per barrel due to ongoing uncertainty in the Strait of Hormuz. While not a direct oil play, New Hope benefited from broader energy market strength and potential spillover demand for Australian thermal coal exports. The stock has shown resilience throughout the year amid global energy tightness linked to the U.S.-Iran conflict.
4. Karoon Energy Ltd (ASX: KAR) — up around 4.6% to A$2.06 The oil and gas explorer advanced on the back of sustained crude prices and positive sentiment around domestic energy security. Karoon’s operations in the Santos Basin have drawn attention as investors seek exposure to relatively stable production assets less exposed to some of the geopolitical risks affecting larger international players.
5. AUB Group Ltd (ASX: AUB) — up around 5.4% to A$23.80 The insurance and financial services firm rose amid broader sector rotation into defensives and professional services names. AUB has been expanding its broking and risk management offerings, and the gain reflected steady demand for its diversified business model in a higher-interest-rate environment.

Other notable movers included Premier Investments Ltd and Eagers Automotive Ltd, which posted solid mid-single-digit gains earlier in the week but continued to attract attention in rotational flows.

The broader ASX 200 closed at 8,793.4, down 50.2 points, with materials and financials weighing on the index while energy names provided some offset. Healthcare as a sector outperformed on the day, buoyed by Regis and related names, as investors priced in potential policy tailwinds from Canberra.

Analysts noted that Regis Healthcare’s performance was particularly eye-catching given its recent technical breakdown. The company reported strong first-half FY26 results in February, with revenue up 18% to A$667.7 million on higher occupancy and acquisitions. Mature home occupancy reached 96%, and the firm maintained a healthy net cash position. Thursday’s surge suggested the market is now factoring in a more supportive long-term funding environment for aged care operators facing workforce and regulatory costs.

Treasury Wine’s move highlighted resilience in consumer discretionary names despite cost-of-living pressures. The company has focused on premium brands and direct-to-consumer channels, helping mitigate some margin pressures from currency and logistics challenges.

Market breadth remained negative overall, with decliners outnumbering advancers, but the session’s top performers illustrated how targeted catalysts can drive outsized moves even on a down day for the index. Volume in the leaders was notably higher than average, indicating conviction behind the buying rather than mere short covering.

For investors, the day’s action served as a reminder of the ASX 200’s sensitivity to both domestic policy developments and global commodity trends. With the federal budget still fresh and the Strait of Hormuz situation fluid, selective buying in sectors perceived as beneficiaries could continue in the near term.

Longer-term observers pointed to demographic tailwinds supporting aged care names like Regis, while energy exposure remains attractive as long as Middle East tensions persist. However, analysts cautioned that gains could prove volatile if budget implementation details disappoint or if oil prices pull back on any de-escalation signals.

Retail participation appeared elevated in the top movers, with trading apps showing increased activity in Regis and Treasury Wine. Institutional flows likely played a role as well, with some funds rotating out of recently underperforming areas into perceived value or policy-supported plays.

The ASX 200’s modest decline masked underlying strength in certain pockets, a pattern that has repeated throughout April amid geopolitical headlines and domestic economic data. Friday’s session will likely hinge on any fresh commodity price moves and overnight developments from Wall Street.

As the trading week wound down, the standout gains in Regis Healthcare and Treasury Wine provided a bright spot for a market otherwise grappling with caution. Whether these moves mark the start of sustained outperformance or short-term rebounds will depend on upcoming company updates, policy clarity and global risk sentiment.

For now, the top five gainers demonstrated that even in a subdued broader session, compelling stories and sector tailwinds can still deliver significant returns for nimble investors tracking the ASX 200’s daily movers.

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.

Mumbai: Information technology stocks tumbled on Wednesday, leading the broad market sell-off, after bigwig HCL Technologies‘ fourth-quarter earnings and guidance fell short of expectations. HCL shares slumped nearly 11% in its biggest single-day fall in 11 years, reviving investor concerns about the impact of AI-related disruptions on the sector.

The Nifty IT index dropped 3.9%, against the 0.8% decline in the benchmark Nifty. Persistent Systems, Coforge, Infosys, LTM (erstwhile LTIMindtree) and MphasiS fell between 3% and 5%.

“The sell-off was triggered by HCL Technologies’ weak Q4 performance and subdued guidance, but the broader driver remains poor demand visibility across the sector,” said Harsh Thakkar, research analyst at Samco Securities. “Slower discretionary spending, delayed deal conversions, and limited near-term AI monetisation are weighing on growth expectations.”

HCL’s share slump is the sharpest among peers in the fourth quarter results season as the earnings of TCS, Wipro and Tech Mahindra have been resilient so far. The earnings miss at HCL was largely because of client-specific challenges, particularly in telecom, said Sushovon Nayak, research analyst at Anand Rathi Institutional Equities.

“Tech Mahindra, which derives nearly a third of its revenues from telecom, reported a relatively strong performance,” he said. “The focus now shifts to Infosys’ earnings for further cues.”

Infosys is set to announce its fourth quarter number on Thursday.
HCL’s investor popularity compared to its peers went against its shares on Wednesday.”HCL Technologies was trading at a valuation premium to larger peers Tata Consultancy Services and Infosys, but has delivered weaker growth relative to them,” said Sumit Pokharna, vice-president, Fundamental Research, at Kotak Securities.

“Management highlighted slower deal activity amid geopolitical uncertainty, alongside price deflation or reduced deal sizes, as clients prioritise efficiency and cost optimisation, driven by AI adoption. The extent to which these trends impact the broader industry remains to be seen.”

IT stocks have been under pressure since the beginning of 2026 as worries about AI replacing traditional software products, especially after Anthropic announced advanced tools, sparked a sell-off in the sector worldwide.

So far this year, the Nifty IT index is down 19.5%, with all its components down 8-26%, except for Oracle Financial Services Software, which gained 5.7%. The Nifty shed 6.8% in this period.

Buy on Dips?
The weakness may be an opportunity to buy some of the beaten-down stocks in the sector.

“For medium to long-term investors, the sector is offering accumulation opportunities on dips,” said Dhanshree Jadhav, analyst – Technology at Choice Institutional Equities. She prefers midcap IT companies over large caps.

Nayak prefers LTM and Infosys in large caps, and Persistent Systems and Mphasis in midcaps.

“While the industry may continue to face revenue pressures over the next year, selective opportunities and new revenue streams could offer some support,” he said.

Pokharna prefers Infosys, TCS, and Tech Mahindra over HCL.

Investors bullish on IT stocks must, however, brace for sharp swings.

“Volatility is likely to persist over the next few quarters as earnings remain range-bound and sentiment stays guidance-driven,” said Thakkar of Samco.

“Investors should avoid aggressive buying and instead adopt a staggered approach, focusing on quality companies, while remaining cautious on those with limited earnings visibility until a clearer demand recovery emerges.”

The recent surge in equity markets has caught many investors off guard, prompting a more cautious stance among market participants. Despite the strong recovery, concerns around valuations and unresolved geopolitical tensions continue to linger beneath the surface.

Sharing his perspective, market expert Anand Tandon noted that the pace of the rebound has been unexpectedly fast. “Not a whole lot. The market has had a rocking recovery, much faster than at least I expected and perhaps some of the people in the market. At this point of time, you need to kind of hold back a bit and see where it goes from here because it has reached back to levels where it was before we had the geopolitical issues in West Asia, and those have not been sorted out, whereas the market clearly thinks that they have.”

FMCG Gains, But Valuation Questions Remain
The fast-moving consumer goods (FMCG) sector has recently seen renewed investor interest, largely driven by strong earnings from major players. However, the optimism may be tempered by valuation concerns.“Obviously, the numbers have been good. But if you look at the overall growth, we are still looking at 12% odd growth year on year. So, it is not exactly performance which is going to do a blowout. Now, the forecast obviously is a lot better. You are looking at perhaps more than 20% growth in the year ahead. But you have a company which still trades upwards of 40 PE, so it is not exactly cheap. I mean, there is a small company which trades somewhere in the world called Nvidia, which trades at 17 PE and grows at 50%.”

While consumption-driven sectors have shown resilience, questions remain about whether current growth levels are enough to justify elevated market multiples.
Earnings Growth: Hopeful, Yet Uneven
Looking ahead, the outlook for corporate earnings appears mixed. The current quarter may benefit from favourable base effects, but uncertainties loom over the near-term horizon.“So, I was saying that the consumer sector will probably show good numbers for this quarter. The challenge will be in the current quarter, in Q1 for the next year, where some of the impact of the war, etc., will come through, so that is going to be a bit of a challenge. In the current quarter, probably the fact that you have at least the initial numbers from FMCG, etc., gives you some hope that you will probably find decent growth there on a year-on-year basis. Whether that is enough for it to fire up the imagination of investors is a different story because, like I said, it is not as if it is exactly cheap.”

He also pointed to a broader concern weighing on markets: subdued earnings growth relative to valuations.

“Frankly, we have got an overhang on the market, which is that the Nifty continues to show very tepid earnings growth and the valuation continues to remain on the higher end of the valuation curve, both from the historic point of view as well as from the fact that relative to our other emerging markets, there is still a lot of the emerging markets which, despite having gone up much higher, are still trading cheaper and continue to show more robust earnings growth than we have.”

Defence: Long-Term Opportunity, Short-Term Constraints
The defence sector remains an area of structural interest, though challenges persist in domestic manufacturing capabilities.

“Defence is definitely one of the few places where you can expect to see consistent growth. But unfortunately, we are still some distance away from having companies which are actually making stuff in India in a meaningful way. HAL has made a lot of planes which do not have engines, and that is the kind of key problem that Indian defence faces—that when it comes to serious technology, we are still floundering.”

He further highlighted gaps in emerging segments like drones.

“We have more than 200 companies which have announced plans to come up with drones. There is only one serious company which can actually create defence-quality drones so far. So, most of the numbers that you will see are actually being spent overseas even today. So, still early days yet, and the valuations are already skyrocketing, but that said, it is certainly an area which not only in India but globally will continue to remain investor-friendly.”

Banking Sector: Stability with Caution
Private sector banks continue to be viewed as relatively stable bets within the financial space, supported by strong balance sheets and better liability profiles.

“They are reasonably well positioned and relatively cheap. You have to, of course, keep in mind the fact that we are probably at the best end of the cycle. You have a situation where the balance sheets are the cleanest, NPAs are the lowest, and therefore the only pressure really is on the NIM and the ability to raise more deposits.”

“To that extent, private banks have an edge over the public sector banks because their liability profiles are much better and they are able to get more retail customers. So, generally positive from that sector, and given its weight in the index, at a portfolio level there is no reason why you should not be having them.”

Beyond banks, Tandon expressed a preference for life insurance businesses as long-term plays.

“Banks are an obvious choice, but otherwise the asset side of the business is also looking good. I personally prefer life insurance companies. You have to look past quarterly ups and downs—that is a long-term kind of call that one is making—and therefore, again, the likes of SBI Life or ICICI Pru are companies that can do well.”

Power and Batteries: A Structural Growth Theme
The energy transition story, particularly around batteries and renewable infrastructure, is gaining traction. However, execution challenges remain.

“From an Indian perspective, the fact is that there will be a large demand for batteries going forward, especially for renewable power. Now the government has kind of mandated that all new capacities that come up have to have battery backups. The only question is what technology to use and where you are going to get it from and how dependent you are on China for any of those.”

When it comes to the broader power value chain, transmission emerges as a preferred segment.

“So clearly, batteries, renewable is one theme which is going to do quite well. More than generation, I prefer transmission. You have generation capacity which will have a kind of fixed upside, whereas transmission can continue to grow. We need a lot more transmission, and therefore all suppliers to transmission companies will continue to see fairly robust performances, at least in terms of the order book.”

However, rising input costs could weigh on near-term profitability.

“The challenge, however, is that you will have fairly high commodity prices in terms of the inputs. So, you may find that the near-term performance for some of these suppliers at least may become a little weaker in the next few months.”

The Road Ahead
While pockets of opportunity remain across sectors, the broader message is one of cautious optimism. Strong rallies have priced in much of the near-term good news, leaving little margin for error.

Investors, it seems, may need to balance growth expectations with valuation discipline as markets navigate an uncertain global and domestic landscape.

No buyer could be found for the business following the loss of its biggest contract

A struggling Merseyside automotive components manufacturer has entered administration after efforts to find a buyer proved unsuccessful following the collapse of its largest contract.

Surface Transforms, headquartered on the Knowsley Industrial Estate, revealed in March that it had lost a deal with General Motors which accounted for approximately 84% of its revenues. The business, which specialises in manufacturing carbon-ceramic brake discs for supercars, has subsequently lodged three court notices to shield itself from creditors while consultants attempted to rescue or sell the operation, with scores of employees already having lost their jobs.

However, on Wednesday evening the firm – which at its peak had a workforce of around 170 people – confirmed that administrators have now been brought in after negotiations failed to reach a viable agreement. Four of the company’s directors have also stepped down with immediate effect.

Financial advisory firm Alvarez and Marsal had been brought on board to conduct a strategic review of Surface Transforms. In a statement issued to the stock exchange, Surface Transforms said Alvarez and Marsal had “engaged with a number of interested parties regarding a potential offer for the business and assets of the company, and/or making a potential offer for the entire issued and to be issued ordinary share capital of the company.

“However, no committed offer for the business and assets of the company or committed offer for the ordinary share capital of the company has been received. Accordingly, the company has terminated discussions with all parties in relation to the strategic review and formal sale process.”

Surface Transforms had also brought in Zeus Capital to explore whether an equity finance solution might rescue the business, but the company’s board concluded that such an approach “was not deliverable”, reports the Liverpool Echo.

Michael John Magnay, Jonathan Charles Marston and Joanna Bull of Alvarez and Marsal have now been appointed joint administrators of Surface Transforms. The company’s statement warned: “It is not expected that the administration process will result in any returns to shareholders.”

Ian Cleminson, Julia Woodhouse, Mathew Taylor and Paul Marr have stepped down as directors of Surface Transforms with immediate effect.

The development marks the latest devastating setback for a firm that was once championed as a beacon for the Liverpool City Region and lauded as a “world class manufacturer” by Metro Mayor Steve Rotheram.

In 2023 the city region’s combined authority extended a loan of more than £13m to support the firm’s expansion and job creation plans. Surface Transforms’ 2024 accounts revealed the firm had borrowed £5.1m of the £13.2m facility available that year. However, it noted that “drawdowns have continued into 2025, and the company expects the full £13.2m facility to be fully utilised by the end of the year (2025).” The region’s Combined Authority has recently said it was in dialogue with the business to “fully understand the current situation.”

The ECHO has spoken to a number of Surface Transforms employees who had either been laid off or made redundant by the struggling firm.

One worker, who lost their job through redundancy, painted a distressing picture of recent weeks at the company, saying: “You had people begging to stay.. It was horrible to see – people who expected to stay because they’d been there years.

“I’ve never ever known anything like it. I’m glad I got made redundant.”

The firm’s shares remain suspended from trading on London’s Alternative Investment Market.