Avenue Supermarts Q1 FY26: Net profit falls marginally at ₹773 crore, revenue grows 16%; check details

The company revenue from operations, however, grew 16.3% year-on-year (YoY) at ₹16,358.7 crore in contrast to ₹14,069 crore in Q1 FY25.

Avenue Supermarts’ earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter under review came in at ₹1,299 crore as against ₹1,221.2 crore, marking an increase of 6.4% YoY.

The margin for Q1 FY26 was seen at 7.94% as compared to 8.68% in the same quarter of the previous fiscal year.

Ahead of its earnings, shares of Avenue Supermarts settled at ₹4,069 apiece, declining 2.40% on Friday.

Total expenses in the first quarter was higher at ₹15,321.66 crore ad against ₹13,056.61 crore in the corresponding period last fiscal.

The retail firm’s basic earnings per share (EPS) for Q1FY26 stood at ₹11.88, as compared to ₹11.89 for Q1FY25.

Commenting on the company's performance, Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said, “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 as 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.”

The company has opened 9 new stores during the quarter, taking its total store count to 424 as of June 30, 2025.

Avenue Supermart, in a statement, said that DMart follows the everyday low cost—everyday low price (EDLC-EDLP) strategy, which aims at procuring goods at competitive prices, using operational and distribution efficiency, and thereby delivering value for money to customers by selling at competitive prices.

Dmart’s total standalone revenue for the quarter ended June 30, 2025, stood at ₹15,932 crore, as compared to ₹13,712 crore in the same period last year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) in Q1 FY26 stood at ₹1,313 crore, as compared to ₹1,221 crore in the corresponding quarter of last year.

EBITDA margin stood at 8.2% in Q1 FY26 as compared to 8.9% in Q1 FY25.

Net profit stood at ₹830 crore for Q1 FY26, as compared to ₹812 crore in the corresponding quarter of last year. PAT margin stood at 5.2% in Q1 FY26 in contrast to 5.9% in Q1 FY25.

Basic earnings per share (EPS) for Q1 FY26 stood at ₹12.75, as compared to ₹12.49 for Q1 FY25.