Trent Announces 1:2 Bonus Issue & ₹2,500 Cr Fundraise as FY26 Profit Jumps 24%

Synopsis: At a board meeting lasting over four hours on April 22, 2026, Trent Limited approved audited FY26 results showing standalone revenue of Rs. 19,701 crore and net profit of Rs. 1,968 crore, alongside a Rs. 6 per share dividend, a 1:2 bonus issue.

Shares of India’s fastest-growing listed fashion retailer came into focus on Wednesday after its board concluded a packed four-hour meeting at Bombay House that produced seven distinct shareholder-relevant resolutions, filed under Regulations. Trent company’s results, capital structure changes, and fundraising approval collectively constitute the most significant single-session corporate action the company has announced in recent years.

On a standalone basis, revenue from operations rose 18.2 percent to Rs. 19,701.41 crore in FY26 from Rs. 16,668.11 crore in FY25. This is consistent with the April 6 business update, which had already flagged full-year standalone revenue of Rs. 19,701 crore and Q4 revenue of Rs. 4,937 crore, the company’s highest-ever quarterly top line.

Standalone net profit for FY26 came in at Rs. 1,967.82 crore, up 24.2 percent from Rs. 1,584.84 crore in FY25. Operating margin expanded modestly to 11.88 percent from 11.29 percent in FY25. Q4 FY26 standalone PAT was Rs. 454.75 crore, up nearly 30 percent from Rs. 349.92 crore in Q4 FY25.

On a consolidated basis, including subsidiaries Booker India Limited, Fiora Online Limited, and international entities, along with associates Inditex Trent (Zara) and Massimo Dutti, FY26 revenue from operations reached Rs. 20,074.21 crore and consolidated net profit stood at Rs. 1,721.33 crore, up 12.2 percent from Rs. 1,534.41 crore in FY25. The consolidated margin is slightly lower at 11.57 percent, partly reflecting the associate accounting treatment for Inditex Trent, which contributed Rs. 70.35 crore to the group’s share of associate profits for the full year.

The statutory auditor, Deloitte Haskins & Sells LLP, issued unmodified opinions on both standalone and consolidated results. Total store count as of Q4 FY26 stands at 1,286 across formats.

The board has approved a 1:2 bonus pending shareholder approval via postal ballot. The bonus will be funded from the securities premium account, of which Rs. 1,924.3 crore was available as at March 31, 2026; the issue requires capitalisation of Rs. 17.77 crore. Post-issue paid-up capital rises from Rs. 35.55 crore (35.55 crore shares) to Rs. 53.32 crore (53.32 crore shares). Credit is targeted within two months by approx June 21, 2026.

While the bonus issue captures headlines, the enabling resolution for a Rs. 2,500 crore fundraise via rights issue or other permissible modes is the filing detail that carries the most forward-looking weight. Trent generated standalone operating cash flow of Rs. 2,630 crore in FY26. 

So it is not short of internal resources in absolute terms. Yet it simultaneously spent Rs. 1,713 crore on fixed assets and investment property, maintained Rs. 499 crore of debentures due for redemption in May 2026, and has now added enabling approval for further capital.

The implication is a store rollout trajectory that requires more capital than operating cash flow alone can fund over the next two to three years  particularly as Zudio moves into larger formats and Westside continues adding premium square footage. The rights issue route would also be consistent with the company’s preference for maintaining promoter holding near the 37 percent mark rather than diluting through QIP.

Business Overview

Trent Limited, incorporated in 1952 is a Tata Group company operating India’s largest value fashion retail chain (Zudio) and one of its most aspirational lifestyle fashion formats (Westside). Zudio, with its sub-Rs. 1,000 price-point positioning and aggressive tier-2/3 city penetration, has been the primary revenue growth driver over the past four years. The company also holds a 49 percent stake in Inditex Trent Retail India (which operates Zara) and a minority position in Massimo Dutti India. 

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