In an analyst meeting that was held on Tuesday, the company announced its plans to add more stores, according to media reports.
On Tuesday, the company also informed the scholarships about opening a new store in Pathhankot in Punjab. This costs the total number of stores up to 426. The company, owned by Radhakishan Damani, had informed the stock markets about the development on Tuesday after market hours.
Avenue Supermarts reported an isolated net profit of RS 830 Crore in the first quarter of FY26. This had only risen 2% compared to RS 812 Crore posted in the period from a year ago. Turnover from the activities in the same period increased by 16% on an annual basis (JoJ) to RS 15,932 Crore.
In Q1 the company opened nine new stores, which brought the total number of stores to 424 at the end of June.
The company then said that although total revenue growth was strong, there was certain pressure that influenced margins and costs. This price decrease had influenced sales growth by around 100 to 150 basic points. Moreover, the FMCG market remained very competitive, which also put pressure on the margins. The D-Mart operator reported a stand-alone EBITDA of RS 1,313 Crore, compared to RS 1,221 Crore in the same quarter last year. The EBITDA margin was 8.2%, compared to 8.9% in the period from a year ago.
On a consolidated basis, the EBITDA was on RS 1,299 Crore, with an EBITDA margin of 7.9%, also lower than the 8.7% placed in Q1FY25.
The CEO and MD of the company, Neville Noronha, said that older stores (two years and higher) registered a growth of 7.1% in the quarter.
The company also saw an increase in operating costs, attributed to improved service levels, capacity building and inflation in wages at entry level. The gross margin was lower compared to the previous year because of the constant competitive pressure in the FMCG segment.
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