Trent shares jump up to 7% on strong Q2 earnings for September quarter; should you buy, sell or hold?

Trent was the top gainer among Sensex and Nifty companies. Trent reported a 25 percent YoY rise in consolidated net profit to Rs 468 crore for the September quarter, supported by revenue growth and operating leverage amid an inflationary environment. Consolidated revenue from operations increased 22 percent to Rs 5,873 crore in the quarter ended September 30, compared with the corresponding period last year, the company said in a statement on Thursday.

Operating earnings before interest, tax, depreciation and amortisation (Ebitda) rose 37 percent to Rs 785 crore during the quarter. For the first half of FY27, consolidated revenue grew 20 percent to Rs 11,628 crore, while net profit increased 24 percent to Rs 986 crore. Operating Ebitda rose 35 percent to Rs 1,633 crore. Mayank Jain, Market Analyst at PhonePe Invest, said Trent shares surged over 6 percent and crossed the Rs 3,000 mark following the announcement of the September quarter results.

The company's consolidated revenue from operations stood at Rs 5,873.14 crore, against Rs 4,817.68 crore in the year-ago period, registering a growth of around 21.9 percent. Consolidated net profit increased 25.4 percent to Rs 468.09 crore from Rs 373.42 crore a year earlier. Operating margins remained steady at 12.11 percent, supported by the expansion of its store network across key formats, including Westside and Zudio.

On the technical front, the stock rebounded from its recent base of Rs 2,600-2,700 and closed at Rs 3,037.30 on higher-than-average trading volumes of 3.69 million shares. The rally pushed the stock above its 20-day, 50-day and 200-day moving averages of Rs 2,856.80, Rs 2,830.90 and Rs 2,782.30, respectively. However, the stock had faced selling pressure in the Rs 3,250-3,400 range during July and August, making this zone a key resistance level.

On the downside, the convergence of key moving averages between Rs 2,700 and Rs 2,850 provides immediate technical support. Jain said the stock was at an important technical level after moving above all three key moving averages. However, it was also trading near its previous swing high around the Rs 3,000 mark. A sustained move above Rs 3,000 and a break above the next resistance level could open the way for further gains. However, a fall below Rs 3,000 could keep the stock range-bound, with prices potentially moving sideways around Rs 2,800-2,850.