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Avenue Supermarts Unveils Q1 FY27 Performance: Net Profit Climbs to ₹860.44 Crore Amid Strong Operational Scaling

Posted On : 2026-07-12 11:10:15( TIMEZONE : IST )

Avenue Supermarts Limited, the organizing powerhouse behind India's prominent retail footprint, has officially disclosed its unaudited consolidated financial results for the first quarter of the fiscal year 2026-27, ending June 30, 2026. The Mumbai-headquartered retail major commenced the new fiscal cycle with strong commercial momentum, demonstrating robust double-digit top-line growth and a significant vertical surge in sequential bottom-line profitability.

Income Acceleration Highlights Top-Line Footprint

During the three-month period ended June 30, 2026, Avenue Supermarts generated a substantial Revenue from Operations of ₹18,794.53 crore. This translates into a clear 14.88% expansion when contrasted against the ₹16,359.70 crore processed during the corresponding opening quarter of the previous fiscal year. On a consecutive quarterly timeline, the consumer staple giant expanded its operational intake by 6.28% over the ₹17,683.86 crore logged during the final quarter of the preceding fiscal year ended March 31, 2026.

Complementing its retail engine, the company brought in an additional ₹25.78 crore via secondary other income channels, marking an expansion from the ₹19.43 crore recorded in the year-ago quarter. Consequently, the Total Income for the quarter settled at an impressive ₹18,820.31 crore, capturing a strong growth curve over both the sequential and year-on-year historical marks.

Operating Expenditure and Inventory Movements

The company's cumulative expenditure framework for the quarter reached ₹17,637.17 crore, moving in absolute structural alignment with its expanded physical footprints and inventory turn requirements.

Procurement metrics remained the principal component of the cost structure, with purchases of stock-in-trade adjusting upwards to ₹15,936.19 crore, compared to ₹13,732.15 crore in the year-ago period. Reflecting an aggressive layout of product placement and stock movement across its hypermarket network, the company recorded an inventory consumption change of negative ₹110.36 crore during the quarter.

Human resources and baseline operational infrastructure costs moved as follows:

Personnel Infrastructure: Employee benefit expenses rose to ₹451.93 crore, scaling upward from ₹346.86 crore in the year-ago quarter to keep pace with retail network expansions.

Administrative & Supplementary Cost Lines: General administrative and other corporate expenses were registered at ₹1,017.43 crore, stepping up from ₹858.82 crore in the corresponding quarter of the previous year.

Financing & Amortization: Depreciation and amortization outlays rose to ₹287.70 crore, while the company's structural finance costs settled at ₹54.28 crore.

Profitability Realization and Core Margins

Avenue Supermarts concluded its operational cycle with a consolidated Profit Before Tax of ₹1,183.14 crore, asserting a sharp sequential jump of 30.85% over the ₹904.17 crore recorded in the immediate preceding March quarter.

Total corporate tax obligations allocated for the quarter amounted to ₹322.70 crore, which included a current tax provision of ₹315.60 crore paired with a deferred tax charge of ₹7.10 crore. After accounting for these provisions, the retail powerhouse generated a consolidated Net Profit After Tax of ₹860.44 crore.

This bottom-line outcome represents a healthy 11.34% year-on-year increase from the ₹772.81 crore logged in the same period of the previous year, while simultaneously securing a powerful 31.08% vertical push sequentially against the preceding quarter's net total of ₹656.42 crore. From the total profit pool, equity holders of the parent company laid claim to ₹860.61 crore, while non-controlling interest recorded a minor negative adjustment of ₹0.17 crore.

Operating margins for the retail network settled at 6.85% for the quarter, while the net profit margin closed at 3.71%. Total comprehensive income for the three-month window was finalized at ₹858.27 crore after processing minor non-reclassifiable financial valuation movements.

Key Solvency and Investment Ratios

Supported by an expanding equity framework where paid-up equity share capital climbed slightly to ₹652.25 crore and other structural reserves stood at ₹24,680.64 crore, the enterprise maintained a highly protected leverage profile. The company's consolidated debt-equity ratio was established at a minimal 0.11 times for the period.

Furthermore, Avenue Supermarts maintained a strong debt service coverage ratio of 1.54 times and an interest service coverage ratio of 24.50 times, verifying significant cash generation capabilities relative to its minor funding liabilities. Reflecting the rapid operational momentum, both basic and diluted Earnings Per Share surged up sequentially to ₹13.20 per share, compared to the ₹10.09 per share logged in the immediate preceding quarter.

D-Mart follows 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.

Mr. Anshul Asawa, Managing Director & CEO, Avenue Supermarts Limited commented on the performance of the DMart (Brick and Mortar) Business: Our revenue in Q1 FY27 grew by 15.1% over the previous year. Profit after tax (PAT) grew by 12.8% over the previous year. Two years and older DMart stores grew by 5.5% during Q1 FY27 as compared to 7.1% in Q1 FY26.

In large metros, growth in older stores which have significantly higher revenue per square foot was flat this quarter. While stores in non-metros continue to grow well.

We opened 3 new stores during the quarter taking our total store count to 503.

Mr. Vikram Dasu, Whole Time Director & CEO, Avenue E-Commerce Limited commented on the performance of the E-Commerce (DMart Ready) business: We continue to deepen our focus in large metro cities while improving our model. During the quarter, we have discontinued our operations in seven cities which were marginal contributors. As of June 30, 2026, we operate in 11 cities.

Shares of Avenue Supermarts Limited was last trading in BSE at Rs. 4083.05 as compared to the previous close of Rs. 4079.20. The total number of shares traded during the day was 11467 in over 2249 trades.

The stock hit an intraday high of Rs. 4101.45 and intraday low of 4030.00. The net turnover during the day was Rs. 46670099.00.