April 22, 2026 - ChartAlert®

TRENT – Westside, Zudio, Star – Q4 FY26 Investor Presentation – 22-Apr-26

Trent’s brand strength, Tier II/III reach, and automation efficiencies drive mid‑teens growth and 25%+ EPS CAGR. Near‑term margins face input/store maturation pressures, but ROCE resilience and disciplined capital allocation distinguish structural winners from cyclical beneficiaries.

1–2 minutes

Also see: TRENT – Westside, Zudio, Star – Q4 FY26 Financial Results – 22-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: Stable consumer sentiment; successful capital raise and store maturation; input costs managed via sourcing diversity.
Outcome: Revenue growth 15–18% YoY; Op. EBITDA margins sustain at ~13–14%; ROCE remains >28%. EPS grows 20–25%, supported by store density and automation efficiencies.

TRENT – Westside, Zudio, Star – Q4 FY26 Financial Results – 22-Apr-26

Trent’s capex‑driven expansion is scaling revenue/EBITDA with positive FCF and intact gross margins. PAT softness (8.57% vs 8.96%) stems from accelerated D&A, not erosion. Risks lie in lease obligations and normalized non‑operating income, constraining EPS flow‑through. Long‑term signals: same‑store sales and EBITDA‑to‑FCF conversion.

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🔍 Observations

Topline

Revenue grew 17.2% YoY (₹17,134.61 Cr → ₹20,074.21 Cr) in FY26, with Q4FY26 accelerating to 19.2% YoY (₹4,216.94 Cr → ₹5,027.99 Cr) — sustained double-digit volume-led growth rather than price-driven optionality.
Q4FY26 revenue fell 5.9% QoQ (₹5,345.06 Cr → ₹5,027.99 Cr), reflecting the structural seasonality of Q3 being the festive/peak quarter for fashion retail.
Gross margin held firm at 43.9% (FY26) vs 43.5% (FY25) — input cost discipline intact despite inflationary pressures on merchandise.

Bottomline

FY26 PAT grew 12.2% YoY (₹1,534.41 Cr → ₹1,721.33 Cr); growth lagged revenue due to a 52.1% surge in D&A (₹895.18 Cr → ₹1,361.19 Cr) from aggressive store rollouts.
Q4FY26 PAT jumped 32.6% YoY (₹311.60 Cr → ₹413.10 Cr), demonstrating strong operating leverage even in a seasonally softer quarter.
Associate income collapsed from ₹86.50 Cr (FY25) to ₹3.90 Cr (FY26), and other income halved (₹218.56 Cr → ₹114.84 Cr) — both suppressed PAT relative to underlying operating performance.

Margins

EBITDA margin expanded 146 bps YoY to 18.03% (EBITDA: ₹3,619.88 Cr vs ₹2,838.42 Cr), with Q4FY26 hitting 18.13% vs 16.33% — indicates operating leverage kicking in at scale.
EBIT margin was nearly flat at 11.25% (FY26) vs 11.34% (FY25), as D&A intensity rose from 5.2% to 6.8% of revenue — expansion capex creating a transient margin drag.
Net profit margin compressed to 8.57% from 8.96% — entirely attributable to the non-cash D&A step-up and income line normalisation, not core business deterioration.

Growth Trajectory

Revenue CAGR trajectory is consistent and accelerating at the Q4 level, confirming store count expansion is translating into durable top-line scaling.
EPS grew 11.2% YoY (₹43.51 → ₹48.37); below PAT growth rate of 12.2%, but consistent given stable share count — no dilution drag.
Total assets grew 24.5% YoY (₹9,419.64 Cr → ₹11,728.58 Cr), with PPE up 62.7% — capital-intensive expansion phase is underway and priced into near-term margins.

TECHM – Tech Mahindra – Q4 FY26 Financial Results – 22-Apr-26

Tech Mahindra’s FY26 shows 120 bps EBITDA margin expansion and 13% PAT growth, with Q4 cleanly strongest. Yet ₹12,210 Mn working capital drag and 83.8% payout strain buffers. FY27 durability hinges on DSO and OCF conversion quality sustaining the earnings recovery.

1–2 minutes

🔍 Observations

Topline

Revenue from operations hit ₹150,761 Mn in Q4FY26, up 12.6% YoY (vs ₹133,840 Mn in Q4FY25) and 4.7% QoQ — the strongest quarterly print in the disclosed period, signalling demand recovery is gaining traction.
IT segment drove ₹126,608 Mn (84% of Q4FY26 revenue); BPS contributed ₹24,153 Mn (16%) — both segments accelerated sequentially.
Full-year FY26 revenue of ₹568,154 Mn grew 7.2% YoY (vs ₹529,883 Mn in FY25), confirming a steady re-acceleration after prior-year softness.

Bottomline

Q4FY26 PAT of ₹13,564 Mn surged 18.8% YoY (vs ₹11,419 Mn) and 21.3% QoQ (vs ₹11,186 Mn) — the cleanest quarter in the set, with no exceptional items distorting the read.
FY26 PAT of ₹48,055 Mn grew 13.0% YoY (vs ₹42,530 Mn), with owner-attributable profit at ₹48,109 Mn, tightly aligned — minority drag is negligible.
Q3FY26 PAT was suppressed by a ₹2,724 Mn exceptional item; ex-exceptional, Q3 PBT would have been ₹17,775 Mn vs reported ₹15,051 Mn — Q4 momentum is therefore organic.

Margins

Q4FY26 EBITDA (PBT + Tax + Finance Costs + D&A): ₹17,906 + ₹4,342 + ₹888 + ₹4,811 = ₹27,947 Mn on revenue of ₹150,761 Mn → EBITDA margin of 18.5%, up from 14.5% in Q4FY25 (EBITDA ₹19,349 Mn / ₹133,840 Mn).
FY26 EBITDA: ₹65,731 + ₹17,676 + ₹3,374 + ₹18,816 = ₹105,597 Mn on ₹568,154 Mn revenue → 18.6% EBITDA margin, vs FY25 EBITDA of ₹92,280 Mn / ₹529,883 Mn = 17.4% — 120 bps annual expansion.
FY26 net margin: ₹48,055 / ₹568,154 = 8.5% vs FY25 ₹42,530 / ₹529,883 = 8.0% — 50 bps improvement; employee costs as % of revenue fell from 55.9% to 53.6%, the primary lever.

Growth Trajectory

Segment results grew faster than revenue: Total segment results up 16.4% YoY in FY26 (₹110,158 Mn vs ₹94,632 Mn), implying operating leverage is kicking in.
BPS segment results grew 25.7% YoY in FY26 (₹14,990 Mn vs ₹11,923 Mn) — disproportionate profit contribution from a smaller revenue base signals mix improvement.
Basic EPS expanded from ₹48.00 in FY25 to ₹54.28 in FY26, a 13.1% YoY gain — earnings quality is clean, with dilution from stock options minimal (diluted EPS ₹54.19).

NESTLEIND – Nestlé India – Q4 FY26 Fin Press Release – 21-Apr-26

Topline resilience hinges on rural/export demand and premiumization execution, while bottomline/ margins face structural reinvestment trade-offs; commodity input costs and ad spend ROI are the critical swing factors for FY27 modeling.

1–2 minutes

Also see: NESTLEIND – Nestlé India – Q4 FY26 Financial Results – 21-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key variables: Rural/urban demand stable, commodity costs inline (+5–10%), ad spend ROI sustains penetration.
Outcome: Revenue growth 15–18%; EBITDA margins 23–25% (reinvestment offset by cost savings). Cash flow supports dividend + selective capex. Implication: EPS growth 10–15%; premium valuation justified by structural growth.

NESTLEIND – Nestlé India – Q4 FY26 Financial Results – 21-Apr-26

Nestlé India’s FY26 shows revenue, FCF, and balance sheet strength, but 70 bps EBITDA compression despite 14.6% growth highlights cost inflation and associate drag. With capex cycle over, it’s a high‑FCF compounder; risk lies in valuation if margin trough proves structural, not seasonal.

1–2 minutes

🔍 Observations

Topline

Q4FY26 Revenue from Operations hit ₹6,748 Cr, up 22.6% QoQ (vs ₹5,667 Cr in Q3FY26) and 22.6% YoY (vs ₹5,504 Cr in Q4FY25) — a strong seasonal quarter driven by domestic volume.
FY26 full-year revenue reached ₹23,155 Cr vs ₹20,202 Cr in FY25, a 14.6% YoY gain. Domestic sales drove the bulk: ₹22,119 Cr vs ₹19,293 Cr (+14.6% YoY).
Export revenue grew 21.4% YoY (₹953 Cr vs ₹785 Cr), contributing ~4.1% of product sales — a minor but improving diversification lever.

Bottomline

Q4FY26 PAT of ₹1,111 Cr grew 27.3% YoY (vs ₹873 Cr in Q4FY25), the strongest quarterly print of FY26.
FY26 PAT of ₹3,499 Cr rose 9.1% YoY (vs ₹3,208 Cr in FY25), despite an associate loss drag of ₹46 Cr vs ₹24 Cr in FY25.
FY26 basic EPS of ₹18.15 vs ₹16.63 in FY25 (+9.1% YoY) — adjusted for the 1:1 bonus share issue in FY26 (share capital doubled from ₹96 Cr to ₹193 Cr).

Margins

Q4FY26 EBITDA margin: ₹1,772 Cr ÷ ₹6,748 Cr = 26.3%, a sharp recovery from Q3FY26’s 21.2% (₹1,201 Cr ÷ ₹5,667 Cr) and above Q4FY25’s 25.2% (₹1,388 Cr ÷ ₹5,504 Cr).
FY26 EBITDA margin: ₹5,306 Cr ÷ ₹23,155 Cr = 22.9% vs FY25’s 23.6% (₹4,770 Cr ÷ ₹20,202 Cr) — a 70 bps compression, driven by material cost inflation and higher D&A.
FY26 PAT margin: ₹3,499 Cr ÷ ₹23,155 Cr = 15.1% vs FY25’s 15.9% — mild compression despite revenue scale-up, reflecting cost headwinds.

Growth Trajectory

Revenue CAGR of 14.6% in FY26 is healthy for a mature FMCG franchise, but EBITDA grew only 11.3% (₹5,306 Cr vs ₹4,770 Cr) — volume leverage not yet converting to margin expansion.
D&A jumped 29.5% YoY (₹699 Cr vs ₹540 Cr), signalling accelerated capex capitalisation; CWIP fell sharply from ₹1,173 Cr to ₹507 Cr, confirming assets going live.
Q3FY26 EBITDA margin of 21.2% was a notable trough; the Q4 rebound to 26.3% suggests seasonality and cost absorption, not a structural fix.