BENGALURU: Avenue Supermarts Ltd Reports Steady Growth Amid E-commerce Challenges
Avenue Supermarts Ltd, the operator behind DMart, disclosed robust double-digit growth for the fiscal year 2026 on Friday.
This growth comes despite mounting challenges posed by quick-commerce platforms, which have notably affected margins within its e-commerce segment.
The Mumbai-based retailer unveiled a revenue figure of ₹17,204.50 crore for the quarter spanning January to March, marking an impressive year-on-year increase of 18.96%. Concurrently, net profit experienced a rise of 16.9%, amounting to ₹724.60 crore.
Over the fiscal year 2026, overall revenue surged by 15.8%, reaching ₹66,968.03 crore, while net profit was recorded at ₹3,223.93 crore.
Commenting on the market dynamics, Ansul Asawa, Chief Executive of Avenue Supermarts, noted, “Geopolitical tensions resulted in a brief surge in consumer purchases during March 2026, although this trend normalized towards the month’s conclusion. Our operations have not encountered significant supply chain interruptions thus far.”
During this quarter, the retailer expanded its footprint by opening 58 new stores, elevating its total store count to 500.
This strategic expansion aims to bolster growth and embed the brand further beyond urban areas amidst intensifying competition.
Same-store sales growth witnessed a rise to 10.8% in this quarter, compared to 8.1% during the corresponding period last year.
In terms of revenue sources, food products remained the predominant segment, contributing 57.9% to FY26 revenue. General merchandise and apparel accounted for 22.28%, while non-food fast-moving consumer goods (FMCG) represented 19.82% of total sales.
Vikram Dasu, Whole-time Director and Chief Executive of Avenue E-Commerce, shared insights on the DMart Ready initiative, stating, Our focus on key metropolitan areas continues to be a priority.
We have refined our delivery strategies, prioritizing home delivery. During this quarter, we ceased operations in one city, maintaining a presence in 18 cities as of March 31, 2026.
DMart Ready, the grocery platform offering home delivery and order-pickup services, has adjusted its strategy in response to fierce competition, opting to exit specific cities while sharpening its focus on metropolitan markets and home delivery options.
Sandeep Abhange, a research analyst with LKP Securities, remarked that the revenue growth was largely in line with expectations; however, margins remain under considerable stress as losses within the e-commerce sector continue to undermine consolidated performance.
Abhange further observed, “While DMart persistently augments its topline, the diminishing margins indicate a deficit in operating leverage, magnified by the e-commerce segment’s widening gap between standalone and consolidated profitability.”
Looking ahead, he emphasized, “A crucial aspect to monitor in FY27 will be whether consolidated margins start to align with standalone margins. Until the online ventures cease to exert a drag, continued pressure on DMart’s premium valuation may persist.”
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