Synopsis:- Avenue Supermarts, operator of DMart, reported a 16.2 percent revenue growth in Q1FY26, with profits steady despite margin pressures. The company expanded its store count to 424, reflecting confidence in demand. Strong financials, low debt, and consistent growth keep the retailer well-positioned in India’s competitive retail landscape.
One of India’s most popular retail chains has kicked off the financial year with steady growth in revenues and profits, despite facing pressures on margins due to market competition and deflation in key product categories. The company continues its expansion trajectory with new store openings, reflecting long-term confidence in consumer demand.
The company in focus is Avenue Supermarts Limited, widely known for operating the DMart supermarket chain, with a market capitalization of Rs. 2,58,276 crore. The stock opened today at Rs. 4,090, up from its previous close of Rs. 4,064.20, and touched an intraday high of Rs. 4,115.
What’s the news?
Avenue Supermarts reported its Q1FY26 results, showing a 16.2 percent increase in total revenue, rising to Rs. 16,360 crore compared to Rs. 14,069 crore in the same quarter last year. The company’s Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter stood at Rs. 1,299 crore, up from Rs. 1,221 crore in Q1FY25, with an EBITDA margin of 7.9 percent, slightly lower than the previous year’s 8.7 percent in Q1FY25.
Net profit for Q1FY26 was reported at Rs. 773 crore, almost unchanged from Rs. 774 crore in Q1FY25, resulting in a PAT margin of 4.7 percent, compared to 5.5 percent a year ago. Earnings per share (EPS) came in at Rs. 11.88, almost flat compared to Rs. 11.89 in the corresponding quarter last year.
On a Quarter-on-Quarter basis, sales increased from Rs. 14,872 crore in March 2025 to Rs. 16,360 crore in June 2025. Operating profit rose from Rs. 955 crore to Rs. 1,299 crore, with an OPM of 8 percent. Net profit grew by 40% quarter-on-quarter from Rs. 551 crore to Rs. 773 crore, while EPS improved from Rs. 8.47 to Rs. 11.88.
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Comments of Management
Commenting on the performance, Mr. Neville Noronha, CEO & Managing Director of Avenue Supermarts, stated: “Our revenue in Q1 FY26 grew by 16.2% over the previous year. Profit after tax (PAT) grew by 2.1% over the previous year. Two-year-old and older DMart stores grew by 7.1% during Q1 FY26 as compared to Q1 FY25.
The revenue growth impact of approximately 100-150 bps was primarily due to high deflation in many staples and non-food products. Gross margins are lower compared to the same period in the previous year, due to continued competitive intensity within the FMCG space.
Operating costs are higher due to our efforts on improving service levels, capacity building, and inflation at entry-level wages. We opened 9 new stores during the quarter. Our total stores stand at 424 as of June 30, 2025.”
Founded in 2002, Avenue Supermarts Limited (DMart) is a leading Indian retail chain specializing in value retailing across foods, FMCG, and general merchandise. The company follows an “Everyday Low Cost – Everyday Low Price” strategy, leveraging efficient procurement, tight cost controls, and optimized distribution to offer competitive pricing to consumers. With a presence across multiple states, DMart has become a household name for affordable shopping and continues expanding its reach across India.
Written by – Manan Gangwar
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