D-Mart Q1 FY26 profit flat at ₹773 cr, revenue surges 16% to ₹15,932 cr

Avenue Supermarts Ltd, the company behind D-Mart retail stores, reported a 16.2% year-on-year rise in revenue to ₹15,932 crore for the quarter ending June 2025 (Q1 FY26). This growth was driven by consistent consumer demand and the addition of new stores.

D-Mart's consolidated net profit for the said quarter remained almost flat at ₹773 crore compared to ₹774 crore in the year-ago period. However, profit saw only a modest 2.1% increase on a standalone basis, reaching ₹830 crore as operating margins faced pressure during the period. The company's profit margins for the said quarter dipped on both the standalone and consolidated basis.

Standalone Highlights (YoY):

Revenue: Increased to ₹15,932 crore in Q1 FY26 from ₹13,712 crore

Profit: Grew to ₹830 crore in Q1 FY26 from ₹812 crore

EBITDA: Rose to ₹1,313 crore in Q1 FY26 from ₹1,221 crore

EBITDA Margin: Declined to 8.2% in Q1 FY26 from 8.9%

PAT Margin: Contracted to 5.2% in Q1 FY26 from 5.9%

Consolidated Highlights (YoY):

Profit: Slightly fell to ₹773 crore in Q1 FY26 from ₹774 crore

Revenue: Increased to ₹16,360 crore in Q1 FY26 from ₹14,069 crore

EBITDA: Rose to ₹1,299 crore in Q1 FY26 from ₹1,221 crore

EBITDA Margin: Declined to 7.9% in Q1 FY26 from 8.7%

PAT Margin: Contracted to 4.7% in Q1 FY26 from 5.5%

Operational Insights and Challenges:

Neville Noronha, CEO & MD, Avenue Supermarts, said D-Mart stores open for two years or more saw a 7.1% growth in Q1 FY26 compared to the previous year. He attributed a revenue growth impact of around 100-150 basis points primarily to significant deflation across many staples and non-food products.

He also stated that gross margins were lower due to ongoing competitive intensity within the FMCG sector. Operating costs increased due to efforts to improve service levels, capacity building, and inflation in entry-level wages. D-Mart opened 9 new stores during the quarter, bringing the total count to 424 as of June 30, 2025.

D-Mart continues to follow its Everyday Low Cost - Everyday Low Price (EDLC-EDLP) strategy, focusing on competitive procurement and operational efficiency to offer value to customers.

Shares of Avenue Supermarts closed 2.49% down at ₹4,063.90 on the BSE today.