Trent Ltd Management Discussions

General Economic Backdrop and Industry Outlook

Indias economic ascent over the past three decades marks a journey of successive reforms, technological advancements, benefits of dynamic demographics and political stability. India continues to outperform major global economies, with GDP growth reported at 7.6% in FY 2025-26, as per the Second Advance Estimates by National Statistical Office (NSO) and remains on track to become the worlds third- largest economy by 2030. Private consumption remains a key driver of this momentum, led by discretionary and services spending.

The macroeconomic environment in FY 2025-26 remained complex, shaped by trade challenges due to higher tariffs and general trade protectionism and geopolitical tensions in West Asia. Despite this, the Indian economy remains fundamentally resilient, and its long- term economic promise remains intact. Structural domestic drivers, a young population, rapid urbanisation, and deep digital penetration, continue to underpin a dynamic and expanding consumption base.

Consumer aspirations are increasingly aligned with global trends, particularly in fashion, lifestyle, and food. Also, the Indian market is heterogenous and geographically diverse. For instance, Southern India has been materially ahead in per capita income/ consumption levels. This diversity coupled with waves of evolution playing out, is both a challenge to navigate and an opportunity to leverage.

Retail Sector

India is the worlds fourth-largest retail market. Valued at 90-95 Lakh Crores (~$ 1 Tn) in CY 20251, the market is projected to reach 210 -215 Lakh Crores ($ 2.3 Tn) by CY 20351, driven by rising disposable incomes, growing preference for branded products and the expansion of modern retail infrastructure including malls, mixed- use developments and airport retail hubs. These developments collectively position the organised retail industry for sustained growth.

Fashion and Lifestyle Market!

Indias fashion and lifestyle sector is undergoing a transformative phase, propelled by digitalisation, evolving consumer preferences, and increased global access and exposure. The market, valued at 12 Lakh Crores* ($ 128 Bn) in FY26, is projected to reach 19 Lakh Crores* ($ 201 Bn) by FY30, exhibiting a CAGR of ~12%1. The market is transitioning and becoming more organised.

The organised market expected to grow at a CAGR of 15% against the unorganised market growing at CAGR of 9% over FY25 to FY30*.

Digital channels, omnichannel retailing, and seamless consumer journeys have gained traction. Consumer expectations have recalibrated - value, convenience, and experience now go hand in hand. Brands that deliver value at scale, with strong trust equity and agility, continue to command preference.

Food and Grocery Retail

Food and grocery (F&G) retail accounts for nearly two-thirds of Indias retail market and remains its most entrenched, high-frequency segment. Growth is being driven by rising demand for packaged food, health-conscious consumption, and expansion of modern trade formats. Premiumisation is emerging even in food categories with consumers willing to pay for convenience, quality, and wellness attributes. The proliferation of quick commerce platforms with features like faster deliveries and wider product selection are challenging the traditional retail model. However, price sensitivity remains pronounced. In this context, retail formats that deliver trusted value-led private labels ? both in daily staples and indulgent categories are increasingly favoured. As these trends play out, the market is witnessing increasing formalisation of kirana to modern trade.

Business Highlights Fashion and Lifestyle

Trent is a house of brands aimed at offering lifestyle propositions relevant for everyday with an emphasis on freshness, credible quality, relevance and value. The intent is to deliver growing desirability by being completely in tune with the changing times. We ended the year with 1,286 stores across 321 cities. Each brand seeks to address a unique customer need, catering to individual styles and aspirations across lifestyle categories including fashion, beauty, lingerie, footwear and other accessories.

The Westside business model focuses on the elevation of our overall customer proposition with on-trend fashion, aspirational brand experience and convenient access across store and digital channels. Zudio, on the other hand, focuses entirely on exclusive branded offerings, curated in-house and in line with the latest fashion trends at irresistible prices. Samoh aims to provide a compelling touch of luxury and sophistication to its customers as they shop for their special moments and lifestyle events. Burnt Toast, our latest offering, marks Trents leap into youth-focused fashion, providing a range of bold apparel and accessories, aimed at inspiring young, dynamic individuals to express themselves.

Westside, one of Trents leading lifestyle concepts, is a destination brand that caters to a discerning and diverse audience of fashion across men, women, kids, innerwear, beauty and personal care, footwear and home. The business has progressively evolved into a unique model with aspirational and exclusive retail brands coupled with offerings that are customer-pulled. As of March 2026, Westside operated 300 stores across 97 cities with additional online reach across India and select international locations exclusively through Westside.com, Tata CliQ and Tata Neu.

Westsides business model allows our active ownership across the value chain with respect to key aspects of design, branding, sourcing, logistics, pricing, display, promotion and selling. This enables quick conversion from concept to products in stores, delivering the latest fashion trends through a portfolio of exclusive retail brands. This approach from various perspectives, including from a ‘return on capital employed context, has been more balanced and sustainable than business models which retail third-party labels. Over 80% of merchandise is near-shored from within India, thus ensuring increased agility and transparency of the supply chain.

During FY 2025-26, Westside Focused on Key Initiatives Including:

Emphasis on freshness and on-trend fashion coupled with efficiency of supply chain Empowering young creatives through Young New Game- changer (YNG) programme to collaborate, innovate, and shape contemporary fashion Deepening customer connection and community building through exclusive ‘Wesness programme initiatives across select stores and cities Scaling and leveraging the annual subscription-based customer engagement programme - WestStyleClub Accelerating reach coupled with a focus on a high-quality store footprint with prominent street presence Seamless proposition across stores and digital channels; doubling down on the online channel, including expanding the online channel internationally Partnering with WISH to connect with Gen Z and young millennials through a shared focus on individuality, confidence, and contemporary style Leveraging social media to grow reach and actively appeal to a younger audience Embedding digital capabilities to augment our offerings and value proposition

Exciting Fashion Brands

Westside offers a portfolio of exclusive fashion brands. Our teams, from design to customer service, continually work to understand customers unique fashion tastes and seek to provide products in a fast and agile manner.

Our retail brands are spread across customer lifestyles and price tiers to ensure that distinct customer segments are addressed with relevant propositions. Exciting campaigns through brand videos and social media engagement further support our brands in communicating their unique identities. Westside continues to strategically elevate its product offerings in line with the premiumisation of customer preferences. Brands like Ascot in menswear and Wardrobe in womenswear offer customers trend-forward, elevated fashion at compelling value, strengthening our appeal to the aspirational customer.

The association of fashion with beauty is relatively seamless with our audience.

The Beauty & Personal Care market is valued at ~ 2.4 Lakh Crore1 in FY26 and is expected to reach Rs. 3.8 Lakh Crore1 by FY30 expected to grow at a CAGR of ~12%. As our beauty and personal care offering under the umbrella of StudioWest continues to grow, we are enthusiastic about building this business further as a destination category by providing our customers with differentiated, high-quality and yet attractively priced products. Footwear and innerwear are two other emerging categories that have evolved as growth opportunities, witnessing strong customer traction. The Indian footwear market is valued at ~ 1.04 Lakh Crore1 in FY26 and is expected to reach ~ 1.6 Lakh Crore1 by FY30, expected to grow at a CAGR of ~11%. Similarly, the Indian innerwear market is valued at ~ 84,000 Crore1 and is expected to reach Rs. 1.3 Lakh Crore1 by FY30, expected to grow at a CAGR of ~12%. Lab-grown diamond jewellery is another category we entered through POME. Launched in 2024, POME is our lab-grown diamond jewellery brand focused on contemporary design, accessibility and evolving customer preferences. The brand has expanded its footprint with presence across 22 Westside stores nationwide, alongside a growing online presence, reflecting strong customer acceptance and growth potential.

Highly Prominent and Contemporary Lifestyle Store Experience

We increasingly seek to grow a portfolio of prominent stores that have significant street presence in marquee locations with a footprint predominantly between 20,000 - 30,000 sq.ft. Striking visual merchandising across channels, vibrant shopping ambience and convenience are all important aspects in shaping customer perception of the brand. The total investment in a new Westside store leased and operated by the Company is in the region of Rs. 9-11 Crores across capex, deposits and inventory. Investments are influenced by size and location of new stores.

Property selection is a critical building block that has a significant impact on store-level economics.

This process entails a rigorous set of reviews utilising multiple key criteria to identify promising locations. Our in-house property and projects teams are supported by a well-defined set of processes for analysing potential markets and catchments to identify and capitalise on expansion opportunities. As we pursue a sustainable store expansion agenda, we also conduct an active store optimisation programme which involves identifying off-brand stores and consolidating or upgrading them with newer stores in more attractive micro-markets.

Store portfolio review for brand congruence and consequential consolidation and enhancement initiatives remains an integral component of our strategy. We believe that our stores, in addition to being a venue to sell our products, also give us a direct connection to our customers. In FY26, we added 60 new stores and consolidated 8 stores. While store expansion is a key growth lever for us, maintaining the quality and physical aesthetics of stores and ensuring consistent customer experience is equally important to us at Westside.

Our Customers

Our customers are at the heart of everything we do. Customer centricity, for us, means moving with our audience - anticipating shifts and engaging with relevance through personalised communication, curated experiences, and meaningful social media content.

Through our social media engagements and in-store events, we collaborate with leading fashion bloggers, vloggers and influencers and organise popular fashion and youth events to reinforce our brand messages to a wider audience. Our customers are our biggest influencers and advocates. At Westside, we have carried out curated events across our target audiences and strengthened our community engagement. Some of them are in-store Wesness events and large-format Wesness runs, music events in collaboration with NCPA for our modern customers and music tours and college fests with Gen Z artists for our contemporary customers. Consequently, Westside is gaining further traction with younger customers. In FY26, ~60% of our customers were below the age of 35 years and we saw a 44% growth in GenZ customers.

The value proposition of our annual subscription programme, WestStyleClub, draws new members and renewals. In FY26, WestStyleClub welcomed over 4.12 Million subscribers to the club, taking the total active member base to 11.85 Million (7.73 Million in the previous year), a growth of 53%.

We continue to see strong engagement levels with our community of customers contributing to a growing trend of subscriptions, renewals and spends per visit. Over 90% of Westsides revenues are attributable to its loyal WSC members. Westside follows a comprehensive approach towards customer listening. Customer insights gathered across touchpoints help provide strategic and operational feeds for product, brand, customer service and communication.

Integrated Value Chain

An integrated value chain with a strong inventory management discipline brought about by our warehouse ecosystems, technology stack and strong relationships with our supply partners enables us to deliver the latest fashion every week.

Our product quality and sustainability teams partner with independent inspection and verification firms to evaluate suppliers compliance with applicable laws and our code of ethics. We are committed to investments in scaling and upgrading our supply chain network with a view to enabling sustainable long- term business growth.

Integrated Stores and Online Presence

At Westside, we continue to emphasise the seamless access of our stores and follow our customers across channels. The intent is to facilitate access to, and experience of our brands based on individual preferences and convenience.

We reach a growing online audience through Westside.com, Tata CliQ and Tata Neu. We have also expanded Westside.com in select international locations.

Our customers continue to increasingly leverage the convenience of digital access, with the online channel contributing to around 6% of Westside revenues in FY26. Our online business is profitable and registered volume growth of 32% in FY26. We adopt an omnichannel model, seamlessly sourced from our integrated pool of inventory across select stores and distribution centres. We look forward to growing this channel significantly in the years ahead to allow Westside access to a very large and diverse audience.

Zudio has evolved into a rapidly growing concept that appeals to all with a deep commitment to being accessible across facets - fashion, reach, affordability and lifestyle. Everything about Zudio is anchored around accessibility and compelling offerings. Zudio offers function and fashion at irresistible prices for women, men and children. The exclusive offerings are curated in-house and made available at very sharp price points. As of March 2026, Zudio had 963 stores across 310 cities in India and 3 locations in the UAE, including stores co-located with Star.

Striking Fashion - Sharp Prices

Zudio offerings are constantly refreshed with an aim to provide new and refreshed merchandise to customers on every visit. This year, we continue to enhance our innerwear, footwear and beauty propositions with a wide range of products that focus on quality, trendy packaging and competitive pricing. Apart from ensuring differentiated fashion and experience for customers, active control of the value chain is integral to evolving a sustainable business model for this concept. Pitched at a younger audience, we recognise it is critical to be fashion-forward and closely synchronised with evolving trends. The emphasis is on minimising lead times and landing fresh collections in stores as quickly as possible. Merchandise is almost entirely sourced from within India as a matter of choice, affording access, speed and flexibility.

As the value fashion market becomes increasingly competitive, Zudio differentiates itself by delivering a compelling customer proposition that combines credible quality, responsiveness to consumer preferences, and price stability. By focusing on its own in-house brands, Zudio ensures that its offerings remain fresh and on-trend, consistently appealing to its target audience.

Zudio avoids price-discounting or heavy marketing spends and instead takes an approach to marketing and building brand visibility through expanding its presence in micro- markets. Zudio makes a conscious choice to refrain from going online owing to the channels unattractive economics for this product segment.

A robust supply chain that relies on sourcing nearly all its merchandise from within India, ensures access, speed, and flexibility.

The brands strong inventory management discipline, supported by its robust warehouse ecosystems and technology stack, allows it to deliver fashion at regular intervals without compromising on cost.

Zudio aims to place its stores within arms length of its target customers, ensuring accessibility and visibility. The brand places significant value on the physical store experience, viewing stores as integral to its connection with customers. While store expansion is an integral part of our growth strategy, identifying brand-diluting stores and consolidating or upgrading them is equally important for us.

During FY26, Zudio focused on key initiatives including:

Strengthened customer connect through enhanced digital marketing and social media engagement Elevated brand storytelling via runway shows and influencer-led fashion experiences Leveraged multi-channel feedback and GenAI insights to understand and respond to customers Boosted customer engagement and data acquisition through the FanZ Treat campaign

Growing Footprint

During the year, Zudio added 208 new domestic stores to its portfolio and consolidated 14 stores. With a store footprint of around 10,000-12,000 sq.ft., the concept affords expansion across numerous micro-markets. The capital employed for a new Zudio store is in the region of Rs. 3-4 Crores, including capex, deposits and inventory.

Zudio International

Zudio made its foray into the international market with its first store in Dubai last year. Zudios value-driven fashion proposition has gained strong acceptance in international markets, with six stores now operational in the UAE. The learnings we continue to gain by competing with international brands in the UAE help us further improve our competitive edge back in India.

Key Performance Metrics (Fashion and lifestyle)

Store portfolio expansion approach

Our store portfolio has evolved over time and remains significantly heterogenous in various respects.

We continue to add stores within select existing catchments across Metro and Tier I cities, even as we accelerate presence in multiple smaller markets covering Tier II and cities across the rest of India. The intent is to grow our presence in both existing as well as new micro- markets/ geographies and to position ourselves favourably as more regions across the country evolve and register stronger economic growth. Further, we believe the newer markets that we are now entering, afford substantial growth opportunities, and yet, will mature over time in terms of adoption of fashion trends and density of consumption. Accordingly, the SPSF profile for our business continues to be influenced by our portfolio expansion choices and approach. The annualized fashion portfolio level SPSF for FY26 in case of our stores in the Metro/Tier I cities is Rs. 15,318; Tier II cities is Rs. 13,390 and for our stores across the rest of India is Rs. 12,504.

Emerging Categories

In FY26, we doubled down on emerging lifestyle categories, now accounting for over 20% of our revenues. Footwear, innerwear and beauty continue to be leading categories for us.

Going Forward

Accessible	Fashion forward
Experiential stores	Proximate presence
Integrated supply chain	Resilient and scalable model

Food & Grocery

In Star, we seek to differentiate ourselves by delivering superior value, maintaining consistent and credible product quality, and enhancing the overall shopping experience through convenient store proximity and thoughtful layout design for ease of shopping.

Star - Compelling Proposition

Star stores are primarily operated by Trent Hypermarket Private Limited (THPL) - a 50:50 JV between Trent Ltd. & Tesco Plc UK. The portfolio comprises hypermarket and supermarket stores focusing on categories like food and groceries, home care, apparel, home decor, health and beauty products. The current portfolio consists of 84 Star offline stores located in 12 cities, across THPL and Fiora Hypermarket Ltd., a subsidiary of the Company. The Star business is progressively anchored around a store-led proposition that features a curated assortment of fresh produce, groceries, exclusive own brands, FMCG products, and home care across an optimized footprint of 18,000-24,000 sq. ft. In most stores, Star operates a Zudio proposition (pursuant to an inter se arrangement between the Company and the Star business) alongside that allows the location to be more of a shopping destination. Store layouts are designed to improve navigability for ease of shopping, strengthen price perception, and optimize space productivity.

THPL delivered total income of Rs. 2,773.55 Crores in FY26 vis a vis Rs. 2,699.33 Crore in FY25. The revenue was impacted partially by deflation in Fruits & vegetables.

Star has gone through major transformation during the year wherein store refit was undertaken to drive ease of shopping, digital infrastructure in terms of electronic shelf edge price label and integrated checkout with weighing device and open deck chillers for dairy products. The major refits impacted revenue in first half of the year but in the second half of the year Star witnessed strong consumer traction, reflected in robust growth in footfalls and improved Net Promoter Scores (NPS), driven by consistent product availability, an enhanced shopping experience, and superior product quality.

Star reinforced its fresh business through increased direct sourcing from farmers, alongside targeted investments in store and supply chain infrastructure. By reducing reliance on intermediaries and improving operational efficiencies, Star delivered superior-quality fruits and vegetables at cost effective price. Staples repacking unit was established in Bengaluru to cater to the Southern region.

THPL loss before exceptional items and tax in FY26 is Rs. 127.92 Crore as compared to Rs. 91.96 Crore in FY25.

Transformation journey during the year

Store layout & experience reimagined for ease of shopping

Star continued to invest in upgrading the store infrastructure to enhance customer experience by way of ease of shopping, curated range and promotion at value price. Implementation of integrated check outs with weighing device has helped customers save time. Installation of open deck chillers has eased the visibility and shopping of dairy products for customers resulting in improved customer penetration of this category. All such initiatives have improved shopping experience which is reflected by net promotor score improvements.

Digital SELs

Star has installed digital SELs (Shelf Edge Labels), a technology enabling complete automation of price changes, thus saving stationery and man-hours whilst driving speed of price and promotion updates in a few seconds. This means more productive time for colleagues in store as well as the power of intra-day price changes to be competitive in the market.

Sustainable energy focus

Star has continued to strengthen its commitment to sustainability through investments in solar energy. Star has installed solar power in two large warehouses and in some of the stores. By adopting renewable power solution, Star has reduced its dependence on conventional energy sources, lowered carbon footprint along with cost efficient operations.

Product Assortment optimisation

Star enhanced focus on range optimisation by thoughtfully curating assortments that are closely aligned with customer preferences and demand trends. This disciplined approach enabled Star to rationalise slower-moving and non-core SKUs while ensuring shelf space and capital are deployed toward high-relevance, high-velocity products while meeting customer choice & availability.

Customer communication & engagement

Star has directed its customer communication towards winning customer loyalty. Communication focuses on acquiring and nurturing customers to become high-frequency shoppers, increasing long-term value and store contribution. This starts with acquiring customers and ends with upgrading customers to be weekly & biweekly customers. Communication emphasizes hyperlocal marketing plans using digital communication, flyers, messaging, and local housing society level engagement to ensure personalised communication.

My Star App - In an endeavour to drive a frictionless experience and higher engagement with store customers, Star has launched instore My STAR App. My STAR app enables customers to discover prices and assortments on a tap, unlock personalized/exclusive offers, get access to past transaction history & savings, locate their nearest Star store and much more.

Customer satisfaction

All the initiatives covering store layout upgrade, product assortment & superior quality have resulted in better customer experience and are evident from improving customer satisfaction reflected by NPS increasing from 60 in Sep24 to 70 in Mar26

Prices - Unparalleled Value

As part of Stars compelling proposition, we continue to believe that, in addition to delivering an exciting range, it is critical to have a very compelling price proposition for customers. Price competitiveness is expected to remain a key lever for deepening customer penetration across our micro markets, driving repeat & new footfalls, and supporting growth in the average basket size a customer shops in our stores. Star therefore follows a disciplined pricing framework to ensure competitiveness. Star continues to focus on improving margin resilience and long term sustainability through continued emphasis on process efficiencies across the value chain, including expanding backward integration across key product lines driven by Own brands. These initiatives are expected to enhance cost efficiency, supply reliability, and scalability.

Curated and Fresh Offerings

Stars retail strategy is centred on offering a competitively priced assortment of high quality, hygienic products across fresh farm produce, an extensive non vegetarian portfolio, bakery, grocery, and general merchandise. A sustained focus on high product availability remains a critical driver of customer satisfaction and loyalty. Over the years, the "Star” offering has evolved into a differentiated value proposition, strongly associated with leadership in fresh foods. Star has established a robust direct sourcing ecosystem, working with a network of ~2,000 farmers and procuring more than 80% of vegetables and over 65% of fruits from farmers directly or in some areas through farm produce consolidators in farming zones for better quality and reducing the intermediary cost and handling wastages. Additionally, Star is among the few organized retailers in India to offer customers a comprehensive range of fresh meat and seafood, further strengthening its position as a destination for fresh and quality food products.

Exclusive Retail Brands

We believe that exclusive Own brands are integral to building a sustainable and differentiated business model. In an intensely competitive food and grocery market, exclusive brands enable Star to deliver superior quality at competitive price points while strengthening customer loyalty. Customer acceptance of these offerings is reflected in consistently strong Net Promoter Scores. In our Star business, we are applying Trents playbook of driving own brands led product strategy and the contribution of our own brands is now trending over 70% of revenues. Our exclusive retail brands in FMCG vertical have continued to witness encouraging offtake & comprised 17% share with more than 600 SKUs amongst FMCG categories at the end of FY26. As with fresh foods, majority of the Own brand staples are directly sourced from millers. ‘SMARTLE, our own brand in the general merchandise category continued to gain customer traction and underwent a packaging refresh during the year to enhance on shelf appeal.

Store Expansion and Online Presence

Star has adopted a calibrated approach to expansion in the recent years. Star has continued to pursue a clustered approach with stores primarily in the states of Maharashtra, Karnataka, Telangana and Gujarat with an aim of creating local scale and being closer to customers. This allows Star to achieve (a) better understanding of local needs and preferences, (b) cost efficiency due to economies of scale, and (c) increased brand visibility. Increasingly, our Star food business with clustered footprint stores, value pricing and focus on fresh & own brands is a model that is witnessing resilient customer traction. The performance of Star stores operating under this model is encouraging and we continue to evolve our property portfolio to align with this proposition.

StarQuik

The online grocery portal has shifted to a new technology platform for better customer online shopping experience, and the User interface and experience is being further enhanced for ease of shopping and convenience.

The business is integrated for sourcing from the store network bringing omni-channel convenience for the customer. This has allowed the business to leverage the capabilities and infrastructure across channels. The plan is to scale up the omnichannel operations over time for enhanced customer convenience and reach.

Key Subsidiaries and Alliances

We focus on bringing high-quality fashion to Indian consumers, aligning with our broader vision of offering premium experiences and products in the retail sector with our key subsidiaries and alliances.

Zara and Massimo Dutti

The Company has two separate associations with the Inditex group of Spain. One is Inditex Trent Retail India Private Limited (ITRIPL) - the entity that operates Zara stores and the other is Massimo Dutti India Private Limited (MDIPL) - the entity that operates Massimo Dutti in India. The entities essentially facilitate distribution of Zara and Massimo Dutti products in India through their respective stores. The entity for Zara currently operates 22 stores.

During the year under review, the Zara entity recorded revenues of Rs. 2,749 Crore ( 2,782 Crore in FY25). The entity for Massimo Dutti operates 4 stores and recorded revenues of Rs. 128 Crores in FY26 ( 100 Crores in FY 25). As discussed in shareholder meetings and earlier reports, the said entities are obliged to source merchandise only from the Inditex Group. Also, the choice of product and related specifications are at the latters discretion. Further, the entities are dependent on the Inditex group for permissions to use the said brands in India subject to its terms and specifications.

Including in the context of brand ownership and the arrangements for merchandise supply (with the majority partner entirely controlling these core customer propositions and the terms thereto), the Company views its related commitments as a financial investment. Consequently, it may be appropriate not to consider these commitments as long-term strategic investments integral to our retail operations. The operating activities of these entities are essentially limited only to the distribution of Zara and Massimo Dutti products in India, and consequently, it has implications for the economic value attributable to the said businesses. Overall, given the nature of the arrangements, including merchandise sourcing, use of the brands, operational control with the majority partner and shareholding, it may be appropriate to take cognisance of the related uncertainties and risks involved in the valuation of the associated economics.

The Company currently has 20% shareholding in both these ventures.

Booker India Limited (BIL)

BIL was acquired by the Company in FY20 and operates three cash- and-carry stores under the Booker Wholesale banner. It is focused on developing a warehousing business to enhance operational efficiencies for THPL. With the objective of reorganising and consolidating warehousing operations, THPL Support Services Limited ("TSSL”), a wholly owned subsidiary of BIL, was merged with BIL with effect from 1st February 2026, pursuant to an order of the National Company Law Tribunal, Mumbai Bench. This merger has simplified the group structure and shall enhance organisational, financial and operational efficiencies.

In FY26, BIL registered consolidated revenues of Rs. 442.32 Crore ( 499.48 Crore in FY25) and a loss before exceptional items and tax of Rs. 7.25 Crore ( 29.74 Crore in FY25) (51% of this is attributable to the Company, given the shareholding).

Fiora Business Support Services Limited (FBSSL)

FBSSL is a wholly owned subsidiary of the Company. It reported a total revenue of Rs. 295.83 Crore in FY26 ( 236.42 Crore in FY25) and total comprehensive income of Rs. 7.28 Crores in FY26 ( 13.69 Crore in FY25). It is engaged in providing business support and outsourcing services relating to accounting, merchandising, human resources, payroll, sourcing, warehousing, distribution, etc., to Trent and associated businesses.

Trent MAS Fashion Private Limited (TMF)

Trent MAS Fashion Private Limited (TMF) was incorporated in 2023 as a 50:50 Joint Venture between the Company and MAS Amity Pte. Ltd. for undertaking the business of design, development and manufacture of apparel and apparel-related products, including but not limited to intimate wear. With MAS domain expertise in design capabilities and product knowledge, we expect this business to progressively contribute value to our customers. In FY26, TMF contributed materially to the supply of innerwear for both Westside and Zudio.

Fiora Hypermarket Limited

During the year, Fiora Hypermarket Limited merged with Fiora Online Limited (wholly owned subsidiaries of BIL) with effect from 1st December 2025 pursuant to the Order passed by the National Company Law Tribunal, Mumbai bench. The merger would enhance the operational, organizational and financial synergies between these companies. Further, in accordance with the Scheme of Merger, the name of Fiora Online

Limited has been changed to Fiora Hypermarket Limited w.e.f.

15th January 2026.

Fiora Hypermarket Limited (formerly known as Fiora Online Limited), is engaged in the food and grocery retail business under the Star banner and also operates Zudio stores. It also runs an online grocery retail business under the brand name ‘StarQuik. In FY26, Fiora Hypermarket Limited reported a total revenue of Rs. 253.65 Crores ( 335.73 Crores in FY25) and loss before exceptional items and tax of Rs. 8.80 Crore ( 14.53 Crore in FY25).

Financial Performance

Following are the financial highlights of the Company for the year ended 31st March 2026, on a standalone basis:

Income

The Company has reported total income of Rs. 20,075.87 Crore ( 16,997.48 Crore in FY25), a growth of 18%.

Cost of Goods Sold

Cost of goods sold during the year was Rs. 10,941.30 Crore ( 9,261.55 Crore in FY25).

Cost of goods sold as a percentage of net sales is 56.12% in FY26 (56.42% in FY25). The gross margin profile remained constant and steady for all our concepts.

Employee Benefit Expense

The employee benefit expense during the year was Rs. 1,222.04 Crore ( 1,200.90 Crores in FY25). Investments in RFID and other automation interventions have improved supply chain and in-store productivity, enabling meaningful employee cost optimisation. Ongoing investments across design, logistics, warehousing, and stores aim to drive the next layer of productivity.

Finance Cost

Finance cost for the year was Rs. 164.72 Crore ( 136.89 Crore in FY25), including interest related to lease liabilities.

Depreciation and Amortisation Expense

Depreciation and amortisation expense during the year was Rs. 1,315.69 Crore ( 869.86 Crore in FY25), including depreciation related to the right-of-use assets. Newer stores carry higher depreciation relative to revenues, impacting EBITDA in early years. Profitability normalises as stores mature, making portfolio mix important when assessing margins.

Other Expenses

Other expenses during the year were Rs. 3,894.79 Crore ( 3,451.66 Crore in FY25).

Profit Before Tax and Exceptional Items

Profit before tax and exceptional items for the year was Rs. 2,537.33 Crore ( 2,076.62 Crore in FY25), a growth of 22% year on year.

Financial highlights of the Company for the year ended 31st March 2026, on a consolidated basis:

The Company reported Total Income of Rs. 20,189.05 Crore, a growth of 16% over Rs. 17,353.17 Crore in FY25. Total Expense of Rs. 17,930.36 Crore ( 15,409.93 Crore in FY25), Profit before Tax and exceptional items of Rs. 2,262.59 Crore compared with Rs. 2029.74 Crore (including share of Associates & Joint-Venture) in FY25. Other relevant operating metrics have been discussed as part of the commentary for each of the concepts.

Summary Financial Performance

( Crores)

	Standalone		Consolidated
	FY26	FY25	FY26	FY25
Total Income	20,075.87	16,997.48	20,189.05	17,353.17
Total Expense	17,538.54	14,920.86	17,930.36	15,409.93
Profit before Tax & Exc. Item	2,537.33	2,076.62	2,258.69	1,943.24
Exceptional Item	(25.79)	-	(26.11)	-
Share of Associates & Joint-Venture	-	-	3.90	86.50
Profit before tax	2,511.54	2,076.62	2,236.48	2,029.74
Tax	543.72	491.78	515.15	495.33
Profit after tax	1,967.82	1,584.84	1,721.33	1,534.41

Internal Controls and Adequacy

The Company has a defined system of internal controls for financial reporting of transactions and compliance with relevant laws and regulations commensurate with its size and nature of its business. The Company also has a well-defined process for ongoing management reporting and periodic review of businesses using the Balanced Score Card process to ensure alignment with strategic objectives.

There is an active internal audit function carried out partly by the internal resources and the balance activity outsourced to external specialist firms. As part of the efforts to evaluate the effectiveness of internal control systems, the internal audit department reviews control measures on a periodic basis and recommends improvements, wherever appropriate.

The internal audit department is staffed by qualified and experienced personnel and reports directly to the Audit Committee of the Board. The Audit Committee regularly reviews the audit findings as well as the adequacy and effectiveness of the internal control measures. Based on their recommendations, the Company has implemented several control measures both in operational and accounting-related areas, apart from security-related measures.

The Company has put in place a well-defined risk and controls matrix for periodic review of effectiveness of internal financial controls across processes through an active in-house controls team supplemented with an independent review by an external audit firm. The Company reviews control measures and implements continuous improvements, wherever appropriate. The outcome of review findings is tracked and reviewed periodically by the Audit Committee. The key areas of control review include segregation of duty, authorisations and approvals, monitoring and review, confirmations and reconciliations, etc.

Employees

In FY26, we were able to fulfil the commitment we made to ourselves in terms of talent acquisition, development and retention. Across our businesses, as of 31st March 2026, we had a staff strength of 31,226 (including Westside, Zudio, Samoh, Burnt Toast and corporate staff), and we continue to excel at employee experience despite the growth spike in our employee base.

In FY26, we concluded our annual Employee Engagement Survey, and we continue to maintain high levels of employee engagement.

Key Financial Ratios

Ratio (Formula)	FY26	FY25	Comments
Debtors Turnover Ratio (Net Sales/Average Debtor)	301.31	241.18	Debtors are immaterial in the context of the Companys business model.
Inventory Turnover Ratio (Cost of goods sold/Average Inventory)	5.09	5.16	Disciplined inventory management continued to deliver efficient inventory turns.
Interest Service Coverage Ratio (PBIT/lnterest*)	16.76	16.46	Ratio has improved due to lower Interest on lease liability and increase in profit.
Current Ratio (Current assets/Current liabilities)	2.13	2.59	Working capital continues to be in line with the business cycle at an optimum level.
Debt Equity Ratio (Debt/Equity)	0.33	0.38	Debt includes Ind AS 116 Lease Liabilities.
Operating Margin (Operating profit/Net Sales)	11.88%	11.29%	Operating profit margin is reflective of the growth and scale efficiencies.
Net Profit Margin (PAT/Net Sales)	9.99%	9.51%	Ratio has improved due to increase in profitability.
PAT/Equity	29.19%	30.59%	Ratio reflects profitability in context of expansion of core business assets & infrastructure

FY25 Metrics regrouped for comparability as appropriate.

Interest includes interest on borrowing and Interest on lease liabilities.

Outlook

The Trent business platform continues to get stronger while navigating through the opportunities and challenges. Driven by a sustained focus on our brands, customer experience, and strong store network expansion, the business has maintained growth momentum.

We see strong growth opportunities. Our key strategic initiatives are aimed at accelerating the differentiation of our propositions. We are focused on refining our model to consistently deliver the right combination of quality, price and an elevated customer experience. We continue to emphasise our own brands, responsiveness to emerging consumer preferences and reaching our customers directly. Supported by an integrated platform comprising supply chain, technology stack and support services, Trents growing operating leverage would continue to drive performance and results. Acceleration of our reach across geographies, an entirely integrated store and online proposition, and digitisation of all aspects of our model are key strategic priorities.

The intent going forward is to continue scaling up our presence and in doing so, focus on the following:

Brands and Product Proposition

Anchor our exclusive brands on differentiated products, sharp pricing, lifestyle experience and wide reach

Expand the current footprint of over 17.7 Million sq.ft., across the country with unique brands such as Westside and Zudio to address multiple customer segments and value positioning

Adopt a sharply differentiated approach in customer-facing aspects of our brands and yet significantly integrated with respect to the backend

Supply Chain

Scale up our supply chain to support growing business focused on delivering freshness consistently Continued emphasis on strong inventory-related disciplines, sustained delivery of world-class retail availability levels and freshness of offer, and effective controls across concepts leveraging technology such as RFID and totes, among others

Customer Experience

Actively monitor existing stores and refresh the portfolio through multiple initiatives, including absorption/refurbishment of brand diluting stores

Adopt seamless integration of our store and online propositions

Direct-to-Customer

Expand concepts across attractive micro-markets with enhanced digital reach through westside.com Deliver a highly differentiated and brand-enhancing store portfolio with benchmark standards Accelerate pursuit of a sustainable online business model and digital connect including by leveraging our association with Tata Neu

Viable Model

Concentrate resources on substantially growing our concepts, especially Westside, Zudio, Samoh, Burnt Toast and Star Emphasis on sustainable store- level profitability and investment in select market opportunities

Strategise capital allocation for enhancing capacity and capability for our vendors and employees as we grow existing and new businesses

New Brands

Continue to invest behind our promising newer offerings like Burnt Toast to help the brand scale profitably

Identify new opportunities to incubate fashion & lifestyle concepts in untapped segments of the market

International Expansion

Expansion of our international footprint across all our relevant portfolio of brands, both offline and online in promising markets

Risks and Concerns

The Company follows a structured Enterprise Risk Management (ERM) approach for managing the risks. Details of key risks identified along with their mitigation measures are articulated on page number 50 of the Integrated Annual Report.

Opportunities and Threats

Opportunities relating to market, customers etc., have been articulated on page numbers 48 and 159 of the Integrated Annual Report.