DMart Q1 FY26 Result: Net Profit Falls at Rs 773 Crore, Revenue Up Nearly 17% Even After Increase In Sales

Avenue Supermarts, the company behind the popular DMart retail chain, reported a small dip in profit for the first quarter of the financial year 2026, even though its sales and earnings increased.

Avenue Supermart Q1 Results:

The company's net profit for the quarter stood at Rs 773 crore, which is just 0.1% lower than Rs 774 crore it earned in the same quarter last year. This slight decline in profit came even though total revenue grew by 16.3%, reaching Rs 16,359.7 crore, up from Rs 14,069 crore in the first quarter of FY25. Profit after tax (PAT) margin stood at 4.7% in Q1FY26 as compared to 5.5% in Q1FY25, according to the BSE exchange filing by the company.

The company's operating profit, measured by EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), rose by 6.4%, going up to Rs 1,299 crore from Rs 1,221.2 crore a year earlier. However, its EBITDA margin, which shows how much profit the company makes from its revenue, dropped to 7.94% from 8.68% last year. This means the company made slightly less profit from each rupee of sales.

"Our revenue in Q1 FY26 grew by 16.2% over the previous year. PAT grew by 2.1% over the previous year. Two years and older DMart stores grew by 7.1% during Q1 FY26 as compared to Q1 FY25. 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 as compared to the same period in the previous year, due to continued competitive intensity within the FMCG space. Operating costs are higher due to our efforts on improving service levels, capacity building and inflation at entry level wages. We opened 9 new stores during the quarter. Our total stores stand at 424 as on June 30, 2025," said Neville Noronha, CEO & Managing Director, Avenue Supermarts.

DMart's Business Update:

Last week, the company shared a business update for the first quarter. Its standalone revenue from operations for the June quarter was Rs 15,932 crore, showing a 16.1% increase compared to the same period last year. During the same quarter last year, the revenue was Rs 13,711 crore. In the previous quarter, it was Rs 14,462 crore.

DMart Stock Price movement:

Dmart shares closed at Rs 4063.90 on Friday, July 11, losing Rs 103.95 or 2.49% for the day ahead of the Q1 results. The stock had opened at Rs 4,194.95, hit a high of Rs 4,196.95, and a low of Rs 4,041.70 on the BSE. It has touched a 52-week high of Rs 5,484 and a 52-week low of Rs 3,337.10. The company's current market value (market capitalisation) is Rs 2.6 lakh crore.

About DMart:

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, says the note on the BSE.

Founded by Radhakishan Damani and his family, DMart sells everyday household and personal care items in various states across India, such as Maharashtra, Gujarat, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab, the National Capital Region (NCR), Chhattisgarh, and Daman.

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