Trent Ltd., the Tata Group company that built Zudio into a billion-dollar fashion juggernaut, is looking beyond its existing portfolio. CEO P. Venkatasalu has laid out an ambitious vision: to introduce a new brand every five years, nurturing them into large-scale businesses capable of becoming the next Zudio.
A Platform for Brand Incubation
At the launch of Westside’s YNG collection in Bengaluru, Venkatasalu emphasized that Trent should not be seen as a single-brand company but as a platform for creating, incubating, and scaling multiple brands. “Why can’t we create more billion-dollar brands?” he asked, underscoring the power of consistently adding new ventures to the portfolio.
Over the past five years, Trent has rolled out three fresh labels—Utsah, Samoh, and Burnt Toast—alongside expanding Zudio Beauty into a standalone business. These sit alongside its core businesses: Zudio (value fashion), Westside (premium fashion), and Star (food and grocery).
Zudio: The Growth Engine
Zudio remains Trent’s biggest growth driver, having crossed $1 billion in revenue in FY25. In Q1 FY26, Zudio and Westside together accounted for 82% of Trent’s ₹4,883 crore revenue, with Star contributing the remaining 18%.
As of June FY26, Trent operates:
- 766 Zudio stores
- 248 Westside outlets
- 77 Star grocery stores
The company has slowed expansion recently, adding only one new Zudio store (net) and no new Westside stores in the quarter.
Burnt Toast: A Bet on Gen Alpha
Trent’s latest creation, Burnt Toast, targets Gen Alpha consumers (ages 15–25). Currently available in Mumbai, Bengaluru, and Surat, the brand is positioned as the next potential billion-dollar success. By the end of FY26, Trent expects to add six more Burnt Toast stores nationwide.
Umashan Naidoo, Trent’s head of customer and beauty, described it as a youth-centric label designed to resonate with younger audiences who demand individuality and fast-moving fashion.
Analysts Turn Cautious
Despite strong brand-building momentum, analysts are tempering expectations. Research firms including Nuvama, Axis Securities, and Systematix have cut FY27 revenue estimates, citing:
- Slowing growth momentum
- Low single-digit like-for-like (LFL) sales growth
- Store saturation in some markets, with multiple Zudio outlets pressuring same-store sales
In Q1 FY26, Trent’s revenue rose 19.8% year-on-year to ₹4,781 crore, a sharp deceleration from the 57% surge in the same quarter last year.
Systematix analysts further flagged that Star (food & grocery) saw no real growth despite a 7% revenue rise, suggesting challenges in sustaining momentum across verticals.
Expanding Beyond Fashion
While fashion remains Trent’s backbone, Venkatasalu highlighted emerging categories like beauty, personal care, innerwear, and footwear. These segments now contribute 21% of company revenue and are gaining strong traction. With Zudio Beauty positioned as a standalone growth story, the company is keen to plant “a few seeds at a time” rather than overextending into too many ventures.
Looking Ahead
Trent’s formula is clear: build scale through Zudio, experiment with new brands, and steadily incubate future billion-dollar opportunities. While growth is moderating, the company’s strategy relies on balancing its dependable engines—Zudio and Westside—while nurturing younger bets like Burnt Toast.
Venkatasalu remains optimistic: “We will continue to plant seeds and try new things, not like 20 but a few at a time.”
Trent may be facing slowing growth in the near term, but its long-term playbook is rooted in constant reinvention, ensuring that it stays ahead in India’s fast-evolving retail fashion landscape.
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