Avenue Supermarts shares tumble over 3%: Here are things to know from Q1 FY26 earnings

In the early session, the Dmart promoter shares were trading at ₹3,952 apeice on the National Stock Exchange, declining 2.76%. The stock has touched an intraday low of ₹3,930 per share so far, marking a 3.3% fall from its previous close.

Here are some Q1 FY26 highlights

• Avenue Supermarts reported a marginal decline in its consolidated net profit at ₹773 crore for the April to June quarter of financial year 2025-26. The retail firm had seen a net profit of ₹774 crore in the same period last fiscal year.

• 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.

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

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

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

• 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.

Management commentary

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.”