Trident Ltd Reports Sharp Decline in Quarterly Financial Performance Amid Margin Pressures

Quarterly Performance Overview

Trident Ltd’s net sales for the December 2025 quarter stood at ₹1,574.46 crores, registering the lowest quarterly revenue in recent periods. This represents a significant decline compared to previous quarters, signalling a slowdown in demand or pricing pressures within the garments and apparels industry. The operating profit margin also contracted sharply, with operating profit to net sales ratio falling to 8.62%, the lowest recorded in recent history for the company.

Operating profit before depreciation, interest and taxes (PBDIT) dropped to ₹135.78 crores, while profit before tax excluding other income (PBT less OI) declined to ₹41.34 crores. The net profit after tax (PAT) took a substantial hit, plunging by 44.5% to ₹44.24 crores. Earnings per share (EPS) correspondingly fell to ₹0.09, marking the lowest quarterly EPS in recent years.

Margin Pressures and Rising Costs

The company’s operating profit to interest coverage ratio has deteriorated to 5.31 times, indicating increased strain on its ability to service debt obligations comfortably. Interest expenses for the latest six months surged by 48.59%, reaching ₹50.43 crores. This rise in interest cost, coupled with shrinking operating profits, has squeezed margins considerably.

Non-operating income accounted for 33.10% of profit before tax, suggesting that a significant portion of profitability is now reliant on non-core activities rather than operational efficiency. This reliance raises questions about the sustainability of earnings going forward.

Balance Sheet Strength Amidst Operational Challenges

Despite the operational headwinds, Trident Ltd maintains a relatively healthy balance sheet. The debt-equity ratio for the half-year period is at a low 0.35 times, reflecting conservative leverage levels. Additionally, the company’s debtors turnover ratio is robust at 23.49 times, indicating efficient collection and working capital management.

However, these positives are overshadowed by the deteriorating profitability metrics and the negative financial trend score, which has fallen sharply from +9 to -13 over the past three months. This shift signals a reversal from previously positive momentum to a more challenging financial environment.

Stock Price and Market Performance

Trident Ltd’s stock price closed at ₹28.36 on 10 Feb 2026, up 2.46% from the previous close of ₹27.68. The stock has traded within a 52-week range of ₹23.20 to ₹34.60, reflecting moderate volatility. Despite the recent quarterly setbacks, the stock has outperformed the Sensex over shorter time frames, with a 1-week return of 9.88% versus Sensex’s 2.94%, and a 1-month return of 8.12% compared to Sensex’s 0.59%.

Year-to-date, Trident has delivered a positive return of 5.98%, while the Sensex has declined by 1.36%. However, over longer horizons, the stock’s performance has lagged behind the benchmark. Over one year, Trident’s stock has fallen 6.65% against Sensex’s 7.97% gain, and over three years, it has declined 11.65% while the Sensex surged 38.25%. Notably, the company has delivered strong long-term returns over five and ten years, with gains of 103.44% and 492.07% respectively, outperforming the Sensex’s 63.78% and 249.97% returns.

Mojo Score and Analyst Sentiment

MarketsMOJO has downgraded Trident Ltd’s Mojo Grade from Hold to Sell as of 11 Aug 2025, reflecting the deteriorating financial trend and weakening operational metrics. The current Mojo Score stands at 31.0, signalling caution for investors. The market capitalisation grade remains low at 3, indicating limited scale relative to peers in the garments and apparels sector.

This downgrade underscores the challenges faced by the company in sustaining growth and profitability amid rising costs and margin pressures. Investors should weigh these factors carefully against the company’s balance sheet strength and historical performance.

Industry Context and Outlook

The garments and apparels sector has been grappling with fluctuating demand patterns and input cost inflation globally. Trident Ltd’s recent results mirror these sector-wide headwinds, with margin contraction and subdued revenue growth. The company’s ability to manage costs, improve operational efficiency, and capitalise on market opportunities will be critical in reversing the current negative trend.

Given the current financial trajectory, investors may need to adopt a cautious stance on Trident Ltd, monitoring upcoming quarterly results for signs of recovery or further deterioration.

Investor Takeaway

Trident Ltd’s recent quarterly results highlight a clear shift from positive to negative financial momentum, driven by declining sales, margin contraction, and rising interest costs. While the company benefits from a strong balance sheet and efficient working capital management, these strengths have not been sufficient to offset operational challenges.

Investors should consider the downgrade in analyst sentiment and the deteriorating financial trend score when evaluating Trident Ltd’s prospects. The stock’s recent outperformance relative to the Sensex in the short term may offer some tactical opportunities, but the longer-term outlook remains uncertain without a clear turnaround in profitability and revenue growth.

Careful monitoring of upcoming quarterly results and sector developments will be essential for making informed investment decisions regarding Trident Ltd.

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