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Key Points

DMart posted a marginal dip in Q1 FY26 net profit despite 16% revenue growth, pressured by FMCG competition. The retail chain expanded to 424 stores but saw margin contraction due to staples deflation. CEO Neville Noronha cited competitive intensity as a key challenge for profitability. Shares fell 2.4% as investors reacted to the mixed quarterly performance.

Key Points: DMart Q1 FY26 profit dips marginally despite 16% revenue growth

  • DMart Q1 profit slips to Rs 772 crore from Rs 774 crore YoY
  • Revenue jumps 16% to Rs 16,360 crore driven by store expansion
  • Gross margins shrink due to FMCG competition and staples deflation
  • Nine new stores opened, taking total count to 424 nationwide
2 min read

DMart's profit falls marginally on-year in Q1 FY26, revenue up

DMart reports Rs 772 crore Q1 profit with 16% revenue rise amid margin pressures and FMCG competition.

"Our revenue grew by 16.2% but profit after tax rose only 2.1% due to competitive intensity – Neville Noronha, DMart CEO"

Mumbai, July 11

Avenue Supermarts Ltd, the operator of the DMart retail chain, saw its consolidated net profit fell marginally in the first quarter of FY26 on a year-on-year basis (YoY), the company said in an exchange filing on Friday.

The Mumbai-based retail chain operator posted a consolidated net profit of Rs 772.10 crore for the quarter ended June 2025, marginally lower than Rs 773.68 crore reported in the corresponding quarter a year back.

Revenue from operations rose over 16 per cent year-on-year to Rs 16,359.7 crore, up from Rs 14,069 crore in Q1FY25, driven by a steady rise in store count and higher footfalls.

According to the filing, operating performance, however, remained under pressure and competition and pressure on margins have impacted the company’s bottom line despite healthy revenue growth.

“Our revenue in Q1 FY26 grew by 16.2 per cent over the previous year. Profit after tax (PAT) grew by 2.1 per cent over the previous year. Two-year-old and older DMart stores grew by 7.1 per cent during Q1 FY26 as compared to Q1 FY25," said Neville Noronha, CEO and Managing Director, Avenue Supermarts Limited.

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 compared to the same period in the previous year, due to continued competitive intensity within the FMCG space, Noronha added.

The retail chain firm opened nine new stores during the quarter, taking the number to 424 as of June 30.

The shares of the company ended 2.40 per cent lower at Rs 4,069 apiece.

Earlier, Radhakishan Damani-led Avenue Supermarts Ltd reported a significant dip in its consolidated net profit at Rs 550.79 crore in the Q4 of FY25, from Rs 719.28 crore in the year-ago quarter (Q4 FY24).

- IANS

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Reader Comments

P
Priya S
I've noticed DMart's quality has slightly gone down while expanding so fast. More stores don't always mean better service. They should focus on maintaining standards rather than just expanding.
A
Aditya G
The revenue growth is impressive but margins are getting squeezed. Shows how competitive the Indian retail market has become with JioMart, Big Bazaar and others entering the space. DMart needs to innovate to stay ahead.
S
Shreya B
As a regular DMart shopper, I'm happy to see they're opening more stores. The one in my area is always crowded - shows how much Indians love value shopping! Hope they maintain their low-price strategy.
V
Vikram M
The share price drop seems like an overreaction. DMart has strong fundamentals and this is just a temporary phase. Long-term investors shouldn't worry about quarterly fluctuations.
K
Kavya N
DMart needs to improve their online shopping experience. In today's digital India, their app and website are not as good as competitors. They're losing tech-savvy customers to JioMart and BigBasket.

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