Mumbai, July 24 -- The downgrade came alongside a reduction in the broker's FY26 estimates for sales and earnings per share (EPS) by 5%-9% and 8%-13%, respectively, citing a greater-than-expected impact from cannibalisation. Cannibalisation occurs when the sales of an existing product are negatively affected by the launch of a similar offering within the same company.

The brokerage had initially projected that Trent's value fashion brand, Zudio, would capture a 5% share of India's overall apparel market by FY35. However, Zudio's market share stood at only 1.5% at the end of the previous financial year. Although Zudio continues to grow at a faster rate than the broader apparel market, the broker now expects the pace of market share expans...