A question that investors on Dalal Street are increasingly asking – has the red-hot sales growth for leading retail chains showing signs of cooling off?
The above development comes at a time with consumers increasingly turning cautious — several sectors including the IT, diamond and textiles have been facing a rather difficult operating environment amidst the global trade tensions with the Trump administration and growing signs of employees being laid off.
Leading retail chains have traded at a P/E of more than 70 times for nearly a decade and investors are increasingly reassessing the growth prospects and valuations of these stocks.
And the Trent stock price hit a 52-week low of Rs 4,491.75 on 7 April 2025 and had subsequently ended on Thursday 0.5 % lower at Rs 5,370. Trent operates the Westside retail chain along with Zudio and Star Bazaar.
Similarly, Avenue Supermarts, which operates DMart chain, saw its stock price hit a 52-week low of Rs 3,337 on 3 March 2025 and it ended Thursday’s trade 0.5 % higher at Rs 4,353.9.
The First Cracks Appear: A Look at the Q1 Slowdown
Sales growth momentum has showed signs of slowing in the June 2025 quarter.
Down 70%: Why is Radhakishan Damani sticking with this falling stock?
Trent’s consolidated revenue from operations grew nearly 19 % y-o-y to Rs 4,883.48 crore in the June 2025 quarter. Its consolidated operating profit grew nearly 38.3 % y-o-y to Rs 848 crore during the June 2025 quarter while consolidated net profit grew nearly 8.4 % y-o-y to Rs 424.7 crore during the quarter under review.
And during FY 25, Trent’s consolidated revenue from operations grew nearly 38.5 % y-o-y to Rs 17, 134.6 crore. Its consolidated operating profit grew 43.5 % y-o-y to Rs 2,760 crore during FY 25 while consolidated net profit grew 3.9 % y-o-y to Rs 1,534.4 crore during FY 25.
A similar trend has also been observed for Avenue Supermarts, which operates the DMart chain of retail stores. Its consolidated revenue from operations grew 16.3 % y-o-y to Rs 16, 359.7 crore in the June 2025 quarter. The company has highlighted that it’s like-for- like growth was 7.1 % in the June 2025 quarter vis-a-vis 9.1 % in the June 2024 quarter.
» Read More
