Shares of Tata Group’s apparel arm, Trent, declined 3% to hit an intraday low of Rs 3,028 on the BSE on Friday after the company reported a 21% year-on-year (YoY) increase in consolidated net profit to Rs 519 crore for the quarter ended June.

The company had posted a consolidated net profit of Rs 430 crore in the corresponding quarter last year. Revenue from operations grew 18% YoY to Rs 5,755 crore during the quarter. Compared with the March quarter, Trent’s consolidated net profit rose 25% from Rs 413 crore, while revenue from operations increased 14% from Rs 5,028 crore.

Buy, sell or hold Trent shares?

Morgan Stanley maintained its ‘Overweight’ rating on Trent and raised its target price to Rs 3,406 from Rs 3,151, implying an upside of around 10%.

The brokerage said Q1FY27 EBITDA margin came in well ahead of expectations, supported by year-on-year (YoY) gross margin expansion, while EBITDA growth remained strong despite higher depreciation weighing on profit before tax.

Morgan Stanley also reaffirmed its preference for the company-operated expansion model, raised its EBITDA margin assumptions following the strong quarterly performance, and flagged the Middle East conflict as a near-term risk to consumer sentiment.

Also read: Tata Sons faces continued listing uncertainty after RBI classification
Motilal Oswal maintained its ‘Buy’ rating on Trent with a target price of Rs 3,775, implying an upside of around 21%. The brokerage said the retailer continues to prioritise cluster-level revenue growth and expanding its market share across key micro-markets, rather than focusing on store-level like-for-like (LFL) growth.It noted that Trent remains focused on deepening Zudio’s penetration while accelerating store additions for Westside. Despite rising raw material costs and supply chain risks, the brokerage highlighted the company’s strong margin expansion during the quarter and said management expects supply chain initiatives, closer supplier engagement and calibrated pricing to help sustain margins.

Macquarie maintained its ‘Outperform’ rating on Trent with a target price of Rs 3,600, implying an upside of around 16%. The brokerage said the company delivered a strong Q1 earnings beat, reflecting healthy demand. It attributed the gross margin outperformance to the rising contribution of higher-margin Westside sales. Macquarie also said management’s clarification on FY27 store additions and its constructive commentary on demand reinforced its confidence in sales growth. It added that Trent has multiple levers to manage input cost pressures and sufficient lead time to implement changes, limiting the impact on margins.

Bernstein reiterated its ‘Outperform’ rating on Trent with a target price of Rs 3,500, implying an upside of around 13%. The brokerage said the company once again exceeded profitability expectations while continuing to execute on its growth strategy. It highlighted that Trent has delivered on its store addition plans, sustained growth and consistently improved margins. Bernstein believes the retailer can maintain steady-state growth of 18%-20%, although it remains cautious about near-term macroeconomic headwinds.

Read more: ET Exclusive: Tata Sons reported a 22% increase in annual profit for the year ended March 26

HSBC maintained its ‘Buy’ rating on Trent with a target price of Rs 3,390, implying an upside of around 12%. The brokerage said Q1 EBITDA exceeded its estimates by around 10%, driven by stronger gross margins, which it believes reflected the lagged benefit of lower raw material costs. It noted that the fashion business reported low single-digit like-for-like (LFL) growth, while management’s commentary was mixed but marginally more positive than in Q4FY26. HSBC added that a pickup in growth remains the key catalyst for the stock.

Jefferies remains bearish on Trent

Jefferies maintained its ‘Hold’ rating on Trent and raised its target price to Rs 3,435 from Rs 3,110, implying an upside of around 13%.

The brokerage said strong earnings growth in the first quarter was driven by margin expansion and continued store additions, particularly at Zudio. It noted that like-for-like growth remained in the low single digits, partly due to store densification. Jefferies added that management’s commentary remained cautious on near-term demand amid geopolitical uncertainty, which could push up commodity prices and affect both demand and supply chains, with the company already witnessing cost inflation.

Shares of Honeywell Aerospace tumbled Thursday morning, falling 19.96%, or $40.64, to $163.00, after the newly independent aerospace and defense supplier delivered its first quarterly report since separating from Honeywell International and disclosed a significant cut to its full-year sales and earnings guidance, citing persistent supply chain constraints.

The stock’s decline extended a steep drop that began in after-hours trading Wednesday following the release of second-quarter results, when shares initially fell between 10% and 17% before continuing to slide further as regular trading opened Thursday, pushing the stock well below its previous close of $203.64.

A Difficult First Report as an Independent Company

Honeywell Aerospace, based in Phoenix, completed its formal separation from Honeywell International on June 29, becoming an independent, publicly traded company for the first time. Thursday’s results marked the company’s inaugural earnings report as a standalone entity, and while the underlying quarterly performance beat Wall Street’s revenue expectations, investors focused overwhelmingly on the company’s sharply reduced forward guidance.

The company reported second-quarter organic sales of $4.5 billion, up 5% from a year earlier, alongside adjusted earnings of $1.78 per share. While the revenue figure topped analyst expectations, the results were overshadowed by a substantial downward revision to the company’s outlook for the remainder of the year.

Guidance Cut Sends a Clear Signal

Honeywell Aerospace now expects full-year organic sales growth of 4% to 5%, down sharply from its prior forecast of 7% to 9%. The company also projected full-year adjusted earnings per share of $7.60 to $7.90, well below the $8.86 average analyst estimate compiled by LSEG, representing a reduction of roughly 12.5% at the midpoint relative to consensus expectations. Adjusted EBIT guidance was similarly lowered to a range of $4.35 billion to $4.45 billion, down from a previous forecast of $4.65 billion to $4.75 billion, a decline of $300 million, or roughly 6.4%, at the midpoint. Guidance for second-half free cash flow was not revised as part of the update.

Honeywell Aerospace Chief Executive Jim Currier addressed the guidance cut directly, telling investors that the company’s actions so far had not been good enough to keep pace with demand. Currier said that for the second half of 2026, the company believed it was prudent to align its guidance with what its supply chain had actually demonstrated it could deliver by the end of the second quarter, rather than continuing to forecast based on earlier, more optimistic assumptions.

Supply Chain Bottlenecks at the Root of the Problem

The company attributed the bulk of its earnings shortfall to ongoing supply chain constraints, which it said had limited its ability to keep pace with surging aftermarket demand for its aerospace components and systems. According to the company’s disclosures, supply limitations affecting a small fraction of its supplier base, roughly 2% of suppliers by one estimate, nonetheless constrained overall output growth and forced a shift in production mix toward lower-margin products, weighing on profitability even as top-line sales continued to grow.

The company’s Engines and Power Systems segment bore the brunt of the impact, with adjusted earnings before interest and taxes in that unit falling by $82 million, an amount that alone exceeded the company’s total net earnings decline of $71 million, according to a breakdown of the results. The company’s Control Systems segment partially offset that decline, contributing a $28 million improvement. Honeywell Aerospace also disclosed roughly $100 million in one-time charges tied to inventory adjustments and costs associated with its recent separation from Honeywell International, further weighing on reported profitability for the quarter.

Strong Demand Signals Amid the Weak Guidance

Despite the disappointing outlook, the company’s underlying demand picture remained notably strong. Honeywell Aerospace reported that its order backlog grew 9% to $18.15 billion during the quarter, while aftermarket sales, a key indicator of ongoing demand for maintenance, repair and overhaul services on existing aircraft and equipment, climbed 8%. That combination, robust demand paired with an inability to fully convert it into sales and earnings due to supply constraints, has been the central tension underlying the stock’s reaction, according to analysts who covered the results.

A Response Plan Already Underway

Honeywell Aerospace has outlined a series of steps aimed at addressing its supply chain challenges. According to the company, it is currently in the process of adding more than 50 new suppliers to its network, with an additional 50 suppliers targeted for onboarding later in the year. The company also said its spending on supplier tooling is expected to increase by roughly 20% compared with the first half of 2026, an investment intended to help expand production capacity and reduce the bottlenecks that weighed on the most recent quarter’s results.

Analysts React With Caution

Wall Street’s initial reaction to the results reflected broad concern about the near-term trajectory for the stock. One market strategist, commenting on the results, noted that aerospace stocks typically perform well on a pattern of beating expectations and raising guidance, rather than missing forecasts and cutting outlooks, suggesting Honeywell Aerospace could face a bumpy trading environment until its results demonstrate a clearer turnaround. Morgan Stanley had already lowered its price target on the stock to $235 from $255 in mid-July, ahead of Thursday’s results, reflecting some analyst caution heading into the report even before the scale of the guidance cut became clear.

Despite Thursday’s sharp decline, the stock’s average 12-month analyst price target remained well above its current trading level, with five analysts maintaining buy recommendations and none recommending a sell, according to available coverage, suggesting that at least some segment of Wall Street continues to view the pullback as a potential buying opportunity contingent on the company’s ability to resolve its supply chain issues over the coming quarters.

With Honeywell Aerospace now working through its plan to add new suppliers and increase tooling investment, investors are likely to closely watch upcoming quarterly updates for evidence that the company’s production constraints are beginning to ease. As a newly independent company navigating its first major guidance revision since separating from its former parent, Honeywell Aerospace’s ability to demonstrate a credible path back toward its original growth targets is expected to remain the central focus for investors through the remainder of 2026.

NORFOLK, Va. — A local business owner turned a flooded Norfolk intersection into an impromptu waterway Tuesday, riding his jet ski through several feet of standing water after flash flooding from severe thunderstorms submerged one of the city’s busiest roads, in scenes that quickly spread across social media.

The flooding struck the intersection of Monticello Avenue and Princess Anne Road, where floodwaters reached three to four feet deep in some areas, stranding drivers and turning the roadway impassable by car. Video of the scene showed Joe Scearce, owner of Joe’s Tires and Rims, navigating the flooded intersection on his personal watercraft as stunned onlookers watched from higher ground.

A Storm That Overwhelmed the Region

The flooding was part of a broader wave of severe weather that hit Virginia’s Hampton Roads region beginning Tuesday afternoon. The National Weather Service office in Wakefield issued a flash flood warning covering Norfolk, Chesapeake, Portsmouth, Suffolk and Virginia Beach, warning that thunderstorms were producing heavy rain across the area, with between 1 and 3 inches already recorded and rainfall rates of 1.5 to 2 inches per hour expected to continue. Additional rainfall of 1 to 2 inches was forecast on top of those totals, with the weather service cautioning that flash flooding of small creeks, streams, urban areas, highways and low-lying areas was either already underway or expected to begin shortly.

Extreme flooding was reported across multiple parts of Hampton Roads Tuesday afternoon into the evening, according to local station WAVY, with officials warning that floodwater depths could be deceiving and urging drivers who encountered a flooded road to turn around rather than attempt to pass through.

A Spontaneous Decision

Scearce, whose tire shop sits near the flooded intersection, described the moment he decided to grab his jet ski rather than wait out the storm from dry ground. Speaking with local station WAVY, Scearce recalled turning to his friends and colleagues as the water continued to rise, telling them the situation was becoming serious enough that he needed to act. He said he told the group it was a once-in-a-lifetime opportunity he had to take advantage of, prompting him to head back, remove his socks and shoes, and announce that he was going to put his jet skis into the water on Monticello Avenue. According to Scearce, his friends initially responded with disbelief, saying “no way,” before he insisted he was serious and followed through.

Scearce later told 13News Now that people around him had been warning him throughout the afternoon that conditions were getting increasingly serious, repeating that the flooding was becoming a genuine concern well before he made the decision to take his watercraft onto the submerged roadway.

Business Disrupted, but Doors Stayed Open

Despite the dramatic flooding and resulting damage to equipment at his shop, Scearce said Joe’s Tires and Rims remained busy with customers seeking tire service even as the surrounding area dealt with the aftermath of the storm. Scearce described the rainfall as among the most significant Norfolk has experienced in decades, underscoring just how unusual Tuesday’s storm was compared with the region’s typical summer weather patterns.

A Region Prone to Flooding

Tuesday’s flash flooding adds to a long history of flooding challenges facing Norfolk and the broader Hampton Roads region, an area particularly vulnerable to both tidal flooding and flash flooding from heavy rainfall given its low-lying coastal geography. The region has weathered numerous flooding events tied to hurricanes and tropical systems in recent years, including significant flooding during Hurricane Dorian in 2019, when storm surge and heavy rain led to widespread road closures and prompted the opening of emergency shelters across the area.

More recently, tidal flooding tied to Hurricane Erin disrupted trash and recycling collection across Norfolk last August, forcing the city to reschedule pickups after floodwaters made streets impassable for collection crews. Areas of neighboring Virginia Beach have also experienced unusually severe tidal flooding in recent years, with residents in some cases describing flooding at intersections they had never previously seen underwater, even after decades of living in the area.

Cleanup Efforts Underway

By Wednesday, crews were working to clean up and assess damage from Tuesday’s storm, with the intersection of Monticello Avenue and Princess Anne Road beginning to dry out after standing underwater for an extended period. City crews and local officials continued surveying the broader impact of the flash flooding across Hampton Roads, a process local outlets indicated was ongoing as the region worked to return to normal following the storm.

A Moment That Captured Wide Attention

Video of Scearce’s jet ski ride through the flooded intersection spread rapidly across social media platforms, drawing attention from national outlets and social media accounts covering breaking news, including widely shared posts highlighting the unusual scene of a personal watercraft navigating what is normally a busy roadway intersection. The footage captured widespread public fascination, offering both a moment of levity amid the storm’s disruption and a striking visual illustration of just how severe Tuesday’s flash flooding became in parts of the city.

A Reminder of Flash Flood Dangers

While Scearce’s jet ski ride generated viral attention, weather officials continued to emphasize the serious risks posed by flash flooding events like Tuesday’s storm, reiterating standard safety guidance that drivers should never attempt to drive through flooded roadways given how difficult it can be to accurately judge water depth and the strength of any underlying current. The National Weather Service’s warning language specifically cited flash flooding as a hazard affecting not just small creeks and streams but also highways, streets, underpasses and other areas prone to poor drainage, a category that clearly included the Monticello Avenue and Princess Anne Road intersection where Tuesday’s most dramatic flooding occurred.

With cleanup efforts continuing into Wednesday and beyond, residents across Hampton Roads are likely to remain attentive to further storm forecasts given the region’s persistent vulnerability to both flash flooding from heavy rainfall and tidal flooding tied to coastal storm systems. For Scearce and his tire shop, business appeared to continue largely uninterrupted despite the storm’s disruption, even as Tuesday’s flooding left a lasting, widely shared image of one Norfolk business owner’s unconventional response to rising water in his own front yard.

The shares of Britannia Industries gained 4% to Rs 5,652 on the BSE on Friday after the FMCG major reported a more than 14% year-on-year rise in consolidated net profit to Rs 593 crore for the April-June quarter of the ongoing financial year 2027, with brokerages maintaining their ‘Buy’ calls for the stock.

The company on Thursday released its results for the first quarter of FY27, reporting an 8% YoY rise in revenue from operations to nearly Rs 5,000 crore, from Rs 4,622 crore in the corresponding period of the previous financial year. Its total expenses increased more than 7% YoY to Rs 4,262 crore during the quarter under review.

Britannia’s profit margin stood at around 12%, while net sales grew 9.5% YoY to Rs 4,964 crore. The year started with West Asia conflict, leading to a steep increase in cost of fuel and shipment charges across the company’s domestic and international businesses, which Britannia has been able to navigate well during this quarter, delivering a healthy volume and value growth while also gaining ground against competition, with profits growing ahead of topline in double digits over last year, said CEO & MD Rakshit Hargave.

“While we continue to closely monitor the evolving geopolitical situation in West Asia and crude oil volatility for potential impact on international operations and domestic input costs, we will remain agile in our actions to deliver healthy, sustainable revenue growth amidst an improving domestic demand environment, driven by sharp innovation, strong brand investments, and disciplined margin management through accelerated cost efficiency initiatives,” he further said.

Nuvama on Britannia share price

Nuvama Institutional Equities said the company delivered an in-line performance during the first quarter, with margins expanding. It noted that the FMCG major’s international business recovered sequentially as supply chain constraints eased towards the end of the quarter. Staff costs declined 13.3% YoY and increased 12.6% QoQ, while interest expense declined 12.5% YoY, it noted.
The geopolitical situation in West Asia and volatility in crude oil prices remain key monitorables, according to Nuvama, which has a ‘Buy’ call on Britannia Industries shares with a target price of Rs 7,240 apiece, implying around 34% upside potential.
Also read | Britannia Q1 Results: Profit rises 14% to Rs 593 crore on volumes, price rise
Nomura on Britannia share price
Nomura said that Britannia’s sales were largely in line with estimates, although EBITDA was a tad below due to higher ad spends. It noted the positive management commentary that highlighted the company ended the quarter with mid-teens growth.

“The company also gained market share on a larger scale in e-commerce on the back of continued innovations and higher influencer and A&P spends, as well as robust growth in GT as the regionalisation strategy yielded results. Britannia launched Dubai Kunafa Croissant in Q1. With the supply chain constraints normalising towards the end of Q1, management highlighted that the international business recovered sequentially,” the international brokerage added.

Nomura has a ‘Buy’ rating on Britannia shares, with a target price of Rs 6,500 apiece, implying 20% upside potential.

Britannia share price
Britannia Industries shares closed nearly 1% lower at Rs 5,404 apiece on the NSE on Thursday ahead of the earnings announcement. The stock has recorded marginal losses in a week and a month, but has overall fallen more than 10% in 2026 so far.

In the longer term, the shares of the FMCG major have declined more than 1% in a year, but delivered positive returns of 16% in three years and 50% in five years. The company has a market capitalisation of Rs 1.3 lakh crore.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)