Tata group's retail arm, Trent Ltd, has reported a 56.24 per cent drop in its consolidated net profit for the fourth quarter ending March 31, 2025, clocking in Rs 311.60 crore. This decline from the Rs 712.09 crore profit, reported in the same period last year comes despite a 27.87 per cent rise in revenue from operations, which was Rs 4,216.94 crore. These figures highlight a complex scenario for the retail giant navigating a dynamic market.

While the year-on-year profit decrease is substantial, a closer examination through expert predictions and past trends reveals an interesting scenario. Analysts had previously flagged the potential for margin fall in the retail sector during the latter half of FY'25, due to factors like rising input costs, aggressive expansion, and higher promotional activities to maintain market share.

The profit paradox

The impressive revenue growth of nearly 28 per cent underscores the continued strong performance of Trent's popular brands like Westside, Zudio, and Star. This indicates a healthy consumer appetite for their offerings and the effectiveness of their market penetration strategies. However, the simultaneous profit slump highlights a critical challenge -- escalating expenses. Trent's expenses were up 26 per cent jump in the March quarter, reaching Rs 3,874.43 crore. This is due to several reasons.

Expansion costs: Trent has been on an aggressive expansion drive, particularly its value fashion brand Zudio, adding 244 stores in FY'25. Setting up new stores entails significant upfront costs, including lease rentals, fit-outs, and initial operating expenses. Experts had anticipated these investments would exert pressure on near-term profits.

Input cost inflation: The broader economic environment has seen inflationary pressures across inputs, including raw materials for apparel, logistics, and energy. These costs would invariably impact the cost of goods sold and operational expenses.

Marketing and promotional activities: To maintain strong revenue growth in a competitive market, retailers often resort to increased marketing and promotional activities, which add to the overall expenditure. Analysts note that a steeper-than-usual quarter-on-quarter drop of 9.7 per cent in standalone gross revenue for Q4 FY'25 might suggest aggressive discounting to clear stock.

Brand-wise performance

Zudio: The value fashion brand has been the primary driver of Trent's store expansion, adding 244 stores in FY'25. This aggressive growth strategy has boosted revenue. However, expansion comes with higher initial setup costs and potentially lower average transaction values compared to Westside, which could be contributing to the margin pressure in the short term. Analysts believe Zudio's focus on Tier II, III cities is a major growth driver, but profits need to be monitored. The back-ended store additions in FY'25 suggest that the full revenue impact of these new stores will be more evident in FY'26.

Westside: As the established premium fashion brand in Trent's portfolio, Westside commands higher average transaction values and potentially better gross margins compared to Zudio. While the number of new Westside stores were 40 in FY'25 it is significantly lower than Zudio, its contribution to the overall profit has been substantial. Any slowdown in same-store sales growth could have an impact on Trent's overall profits. The consolidation of 24 Westside stores in FY'25 might indicate a rationalization of its store footprint.

Star Bazaar: Operating in the hypermarket and supermarket segment, Star Bazaar caters to a different consumer base and product mix. The performance of Star Bazaar is influenced by factors such as food inflation, competition from other grocery retailers (both online and offline), and overall consumer spending on essentials and discretionary food items. The consolidation of 24 Star Bazaar stores alongside Westside suggests a possible review and optimization of the physical store presence across formats.

Expert foresight

While the company has consistently shown strong revenue growth in recent years (as evident in the full-year FY'25 revenue increase of 37.02 per cent), analysts had cautioned that maintaining the same pace of profit growth amidst an evolving economy would be challenging. Notably, the standalone gross revenue for the entire fiscal year 2025 grew by 39 per cent year-on-year.

Table: Trent’s profits and operations revenue

Source: Trent Ltd. Regulatory Filings

As the table illustrates, while revenue has consistently grown, net profit in Q4 FY'25 is lower than the corresponding period in previous year and also the preceding quarter. This reinforces the narrative of decline in margin impacting the bottom line.

In fact, several case studies in the retail sector highlight this delicate balance between aggressive growth and maintaining profits. For example, while fast-fashion retailers often achieve rapid revenue growth through store openings and competitive pricing, their profit margins can be susceptible to factors like supply chain disruptions and the need for frequent markdowns. Similarly, retailers focusing on premium segments might prioritize higher margins over breakneck expansion. Trent, with its diverse portfolio spanning value (Zudio) to premium (Westside), is navigating this complex terrain. The current results suggest the focus on rapid expansion, particularly of Zudio, might be temporarily impacting overall profit.

Navigating growth and profits

Looking ahead, the near-term outlook for Trent appears to be mixed, with analysts offering varied perspectives.

Meanwhile, Trent has acknowledged the positive customer traction across markets due to growing brand awareness, especially in Tier II, III cities where they increased their presence in FY'25. They believe this bodes well for the next phase of growth. The company's emphasis on expanding its reach, particularly through Zudio, suggests a continued focus on revenue growth.

Despite the Q4 profit dip, several experts are optimistic about Trent's long-term prospects, citing strong revenue growth and aggressive store additions, particularly for Zudio. Target prices from various analysts range between Rs 5,900 and Rs 7,600. Motilal Oswal expects revenue, EBITDA, and PAT to grow at a CAGR of 32 per cent, 34 per cent, and 39 per cent, respectively, between FY24-27. They anticipate the back-ended strong store additions in Zudio should aid growth in FY'26. However, the performance of each brand, particularly the ability of Zudio's new stores to achieve profits and the resilience of Westside's margins, will be critical.

Analysts emphasize the recovery in same-store sales growth across fashion and Star formats will be a crucial factor to watch in the near term. Concerns exist regarding a slowdown in like-for-like sales growth and potential cannibalization from new stores, especially within the same brand. The individual performance metrics for Zudio (average sales per sq. ft, profits per store), Westside (same-store sales growth, margin stability), and Star Bazaar (revenue growth, competitive positioning) will offer deeper insights into Trent's overall health.

Future profits will hinge on Trent's ability to effectively manage its expanding operations for each brand, optimize costs, and navigate consumer demand and competition within each segment. The next few quarters will be critical in demonstrating whether the company can translate its top-line momentum into sustainable and healthy profit growth across formats.

The 59th edition of the IHGF Delhi Fair-Spring 2025, organised by the Export Promotion Council for Handicrafts (EPCH), opened on April 16 at the India Expo Centre & Mart, Greater Noida. The four-day fair presents a vibrant sourcing platform spotlighting sustainability, handcrafted value additions and inclusive growth, and will run till April 19.

The event features over 14 curated segments including home décor, furnishings, fashion jewellery, furniture, outdoor and garden accessories, eco-friendly products, and festive decor. Dedicated halls display a wide array of artisanal and contemporary collections from across India. A special Designer’s Gallery, workshops, ramp shows, seminars, and display awards add to the immersive trade experience.

EPCH Chairman Dileep Baid said the fair is drawing strong international participation. “Our exhibitors are focused on sustainability and innovation, including regional deco-utility lines and new product introductions by start-ups,” he said. Live demonstrations of six traditional crafts including Madhubani painting, bangle-making and Pashmina weaving highlight India’s artisanal diversity. Alumni from institutes like NIFT, NID and IIT are showcasing designs using circular and recycled materials.

Rakesh Kumar, Director General and Chief Mentor, EPCH, called the fair a progressive global sourcing hub. He noted that while new US tariffs apply globally, India remains competitively placed compared to China, Vietnam, and Cambodia. “The 90-day US tariff pause gives India a window to pursue a bilateral trade agreement,” he added.

Buyers from across the globe, including major American wholesalers, are actively participating in this edition.

Owner of brands like FableStreet, Pink Fort and March, FS Life has promoted Adarsh Sharma to the ranks of co-founder.

In his new role, Sharma will be responsible for driving the brand’s both online and offline expansion besides assuming additional responsibilities as the co-founder. Having joined FS Life in 2020 as chief revenue officer, Sharma has played a critical role in driving the company’s 15x revenue growth.

Ayushi Gudwani, Founder CEO, FS Life says, Sharma’s drive and commitment to take FS Life to new heights every day has been a force multiplier for the brand.

With over 13 years of experience in roles across business operations and marketing, Sharma was previously engaged with companies like Zomato, Rebel Foods, and Junglee Games. 

Tata Group’s retail company, Trent recorded a 56.24 per cent Y-o-Y decline in consolidated net profit, amounting to Rs 311.60 crore (approximately $39 million) in Q4, FY25 ending March 31, 2025.

In the same quarter last year, the company had posted a net profit of Rs 712.09 crore ($89 million), according to a regulatory filing.

Despite this profit decline. Trent’s consolidated revenue from operations increased by 27.87 per cent to Rs 4,216.94 crore ($530 million) in the March quarter, compared to Rs 3,297.70 crore ($415 million) a year earlier.

The company's total expenses rose by 26 per cent during the quarter to Rs 3,874.43 crore ($487 million).

Including other income sources, Trent’s total consolidated income expanded by 27.16 per cent to Rs 4,291.28 crore ($538 million) from the previous year’s corresponding period.

For the full FY25 ending March 31, 2025, Trent’s net profit grew by 3.85 per cent to Rs 1,534.41 crore ($193 million), up from Rs 1,477.46 crore ($186 million) in FY24.

Additionally, the company’s total income for FY25 reached Rs 17,353.17 crore ($2.2 billion), reflecting a 37.02 per cent Y-o-Y growth.

Trent operates well-known Indian retail brands such as Westside, Zudio, and Star, and continues to experience significant top-line momentum even amid profit margin pressure.

Vivek Biyani, former director at Future Group, is re-entering the retail sector with the launch of Broadway, a modern departmental store focused on digital-first brands. Inspired by his uncle Kishore Biyani, a pioneer in Indian retail, Vivek aims to cater to the 45 per cent of Indians born in this century with unique retail experiences.

Broadway will feature brands that prioritize digital-first strategies and offer distinctive propositions, such as skincare, sneaker culture, and gut health. Unlike traditional retailers, Broadway will not stock inventory or require long-term commitments from brands. Instead, brands can rent space for flexible periods, paying a fixed fee. Drawing parallels with WeWork’s impact on co-working spaces, Vivek envisions Broadway as a "co-retail" environment.

The 25,000-30,000 square feet stores will host around 100 digital-first brands across various categories, including Wellbeing Nutrition, Suta, Mokobara, Derma Co, Aqualogica, and trueBrown. Broadway aims to create a vibrant retail experience with 10-15 daily events and a content studio to amplify experiences digitally.

The first Broadway store will open in Ambience Mall, Delhi, in August, followed by locations in Hyderabad and Mumbai. The venture is supported by actor Rana Daggubati, investor Apurva Salarpuria, and property consulting firm Anarock.

This launch marks the return of Kishore Biyani’s next generation to the retail scene, with Vivek's cousins Avni and Ashni Biyani having recently opened Foodstories, a gourmet store in Delhi.

Driven by its product innovation, retail and digital expansion, and operational efficiency initiatives, revenues of leading footwear brand, Liberty Shoes increased both during Q4, FY25 and FY25. The company demonstrated significant improvement across all sales segments, including key financial metrics, in Q4 and FY25 compared to Q4 and FY24.

Expanding its retail footprint throughout the year, the brand opened 50 new EBOs in Tier II and III cities across India. It also launched performance footwear featuring innovation and new technology.

Anupam Bansal, Executive Director, states, FY 2024-25 has been a milestone year for the brand. Its consistent focus on consumer-centric innovation, premium product categories, and digital and retail expansion has resulted in strong top-line growth with healthy margins.

Optimistic about future opportunities, the company remains focused on driving long-term growth through product innovation, brand strengthening, and operational excellence, Bansal adds.

Liberty Shoes has over 400 EBOs and is present in 5,000 MBOs across India. It also sells its products through its e-commerce store and online marketplaces.

The Maharashtra government has launched the second phase of its e-textile portal to enhance subsidy management and transparency in the textile sector.

Announced by Textiles Minister Sanjay Savkare at an event in Mumbai’s Mantralaya, the update includes a mobile app and the launch of 'Texconnect' magazine for industry insights.

The upgraded portal will now cover silk, handloom, and technical textiles, streamlining the grant process and improving accessibility.

This initiative is part of the state’s broader efforts to digitize the textile sector, making it more efficient and business-friendly.

By centralizing industry information and simplifying subsidy access, Maharashtra aims to strengthen its textile industry and support growth across various segments.

Fashion and lifestyle D2C startup MyDesignation plans to expand its operations with $1.25 million (Rs 10.7 crore) capital raised in a seed funding round led by Multiply Ventures. 

The funding around also attended by Veltis Capital, Sattva Ventures, Dominor Investment Holdings, and Green Trunk Ventures.

The raised capital will be used MyDesignation to accelerate its hiring, technology enhancement, offline expansion, and entry into newer geographies.

Having already achieved 100 per cent Y-o-Y growth for four consecutive years while also staying profitable, the company plans to raise this growth to 200 per cent Y-o-Y without compromising on its financial discipline and customer satisfaction, says Swaroop Krishnan, Co-founder and CEO, MyDesignation.

The company does not depend on third-party platforms for marketplaces, helping it achieve better control over the entire customer journey and deliver one of the best experiences in fashion, adds Gopika B Raj, Co-founder and CCO. The company’s business model allows it to stay intune with its customers’ sentiments and feedback, fuelling its product design and communication strategy, she adds.

Having a customer base of over 5 lakh consumers, MyDesignation was founded in 2020. The company records a monthly repeat rate of 35 per cent, and plans to double this user base within the year.

Bengaluru-based tech and integrated manufacturing retail company Ace Turtle, which operates well-known brands like Lee, Wrangler, Toys ‘R’ Us, Babies ‘R’ Us, and Dockers in India, plans to double its revenue to Rs 1,000 crore by FY 2027-28. Nitin Chhabra, CEO, informs, the company aims to grow each of its brands to Rs 500 crore by FY 2035.

Founded in 2014, Ace Turtle has witnessed rapid growth, with revenue more than doubling in FY23 compared to the previous year. The company’s tech-driven approach, which eliminates middlemen and ensures price parity across channels, has contributed to the profitability of brands like Lee and Wrangler by FY24. Initially launched as a software-as-a-service (SaaS) platform, Ace Turtle has since evolved into a licensing and franchise model, becoming the India franchisee for several global brands.

Despite challenges in the fashion apparel market, Ace Turtle managed to grow its top line by 30 per cent in FY23, defying market trends. The company has shifted its focus to enhancing supply chain efficiency and developing algorithms that can predict sales with up to 88 per cent accuracy. Improving supply chain operations remains a priority, as Chhabra believes, retail margins will increasingly depend on operational efficiency.

In addition to supply chain innovations, Ace Turtle leverages advanced AI systems to track customer behavior and product performance in its stores. The company has also developed an in-house app, Connect, to streamline operations such as employee attendance and training. Although Ace Turtle has no plans to return to the SaaS business, it remains focused on improving its tech development speed and solving internal challenges.

Chhabra also highlights the evolving retail landscape in India, with offline sales gaining momentum after an initial surge in online sales post-pandemic. Ace Turtle is committed to data governance, ensuring strict compliance with customer consent protocols and transitioning to a hybrid cloud model to enhance data security. The company is making its tech stack cloud-agnostic, currently using both Amazon Web Services (AWS) and Google Cloud.

Looking ahead, Ace Turtle plans to introduce a new international brand in January 2025, with intentions to launch one new global brand each year. The company aims to expand its portfolio beyond fashion and into other sectors, positioning itself as a leader in the rapidly evolving Indian retail market. Emphasising on the importance of technology in building a future-proof business model, Chhabra highlights the need for experimentation and quick adaptation to consumer behavior.