MUMBAI— Avenue Supermarts Ltd, the parent company of retail giant DMart, reported a slight year-on-year decline in consolidated net profit for the first quarter of FY26, even as revenue continued to grow steadily.
In its regulatory filing on Friday, the Mumbai-based company reported a consolidated net profit of ₹772.10 crore for the quarter ended June 2025—marginally lower than ₹773.68 crore in the same quarter last year.
Revenue from operations rose by over 16% year-on-year to ₹16,359.7 crore, up from ₹14,069 crore in Q1 FY25. The increase was driven by an expanding store footprint and higher footfall across its retail locations.
Despite the strong top-line growth, the company acknowledged that operating performance remained under pressure due to margin compression and heightened competition in the fast-moving consumer goods (FMCG) segment.
“Our revenue in Q1 FY26 grew by 16.2% over the previous year. Profit after tax (PAT) grew by 2.1% over the same period,” said Neville Noronha, CEO and Managing Director of Avenue Supermarts Ltd. “Same-store sales growth from DMart outlets two years old and older stood at 7.1% compared to Q1 FY25.”
Noronha noted that revenue growth was impacted by an estimated 100–150 basis points due to steep deflation in many staple and non-food product categories. “Gross margins were lower compared to last year, primarily due to continued competitive intensity in the FMCG space,” he added.
The company opened nine new DMart stores during the quarter, bringing the total store count to 424 as of June 30, 2025.
Shares of Avenue Supermarts closed 2.40% lower on Friday at ₹4,069 apiece.
Earlier this year, the company had reported a notable drop in consolidated net profit for Q4 FY25, falling to ₹550.79 crore from ₹719.28 crore in the same quarter of FY24. (Source: IANS)
