Avenue Supermarts reports flat net profit in Q1FY26 despite revenue growth

Avenue Supermarts posted flat net profit of Rs 773 crore in Q1FY26, while revenue grew by 16.3% to Rs 16,359.7 crore, driven by a 7.1% growth in older DMart stores

Avenue Supermarts' consolidated net profit remained flat in Q1FY26 at Rs 773 crore.

 

The company, which runs the DMart chain of supermarkets and hypermarkets, reported a 16.3% increase in revenue, reaching Rs 16,359.7 crore for the quarter ending in June. Neville Noronha, Chief Executive Officer & Managing Director of Avenue Supermarts, said in a statement that DMart stores two years and older grew by 7.1% in Q1FY26 compared to Q1FY25.

 

Its profit before interest, depreciation, and taxes (PBDIT) rose by 4.4% to Rs 1,318.5 crore in Q1FY26. 

 

“Revenue growth impact of approximately 100-150 basis points was primarily due to high deflation in many staples and non-food products. Gross margins are lower compared to the same period last year due to continued competitive intensity within the FMCG space,” Noronha said.

 

He added, “Operating costs are higher due to our efforts to improve service levels, build capacity, and inflation in entry-level wages.”

 

During the quarter, the retailer opened nine new stores, bringing its total store count to 424 as of June 30.