Avenue Supermarts Limited
Avenue Supermarts Limited (DMart) is a national supermarket chain, with a focus on value-retailing. We offer a wide range of products with a focus on the Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories. The company operates the DMart retail chain, first launched in Mumbai in 2002. It follows the “Everyday Low Cost – Everyday Low Price” strategy, focusing on competitive procurement, operational efficiency, and cost-effective distribution to offer value-for-money pricing to customers.
Business Segments
Product Offerings:
The company offers a range of products focusing on Foods, Non-Foods (FMCG), and General Merchandise & Apparel product categories. Its product portfolio includes grocery and staples, dairy and frozen, fruits and vegetables, home and personal care, bed and bath, crockery, footwear, toys and games, kids’ apparel, apparel for men & women, and daily essentials.
Revenue Mix 9M FY26
Foods: 57%
General Merchandise & Apparel: 23%
Non-Foods (FMCG): 20%
Shareholding Pattern (June 2026)
Financial Summary
| Particular | Mar-22 | Mar-23 | Mar-24 | Mar-25 | Mar-26 |
| Sales – | 30,976 | 42,840 | 50,789 | 59,358 | 68,821 |
| Sales Growth % | 28.30% | 38.30% | 18.56% | 16.87% | 15.94% |
| Expenses + | 28,474 | 39,201 | 46,683 | 54,864 | 63,632 |
| Operating Profit | 2,502 | 3,639 | 4,106 | 4,495 | 5,189 |
| OPM % | 8% | 8% | 8% | 8% | 8% |
| Net Profit + | 1,492 | 2,378 | 2,536 | 2,707 | 2,970 |
| EPS in Rs | 23.04 | 36.69 | 38.97 | 41.61 | 45.56 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
Synopsis of Financials
- Turnover: ~INR 67,000 cr.
- EBITDA margin: ~7.8%.
- PAT margin: ~4.8%; PAT: INR 3,224 cr.
- Cash from operations: INR 4,168 cr.
- Asset turns / returns: Fixed asset turnover 3.2x; inventory turnover 12.8x; RoNW 13.5%, ROCE 17.1% (both slightly lower YoY, linked to higher inventory days/turnover impact).
Final Outlook
DMart continues to demonstrate consistent revenue growth, rising operating profit and a strong position in value retailing. Its focus on competitive pricing, efficient procurement and everyday essentials supports customer demand. Q1 FY27 revenue increased by 14.88% YoY, while net profit rose from ₹773 crore to ₹860 crore. However, sales growth has moderated compared with earlier years, operating margins remain relatively low, borrowings have increased and inventory efficiency needs monitoring. With the stock trading at approximately 70.85x P/E, valuation remains an important consideration for investors.
Recent Performance – Q1 FY27
- Revenue growth remains healthy: Sales increased by 14.88% YoY, indicating continued customer demand and business expansion.
- Operating profit is improving: Operating profit reached ₹1,499 crore.
- Profitability improved: Net profit increased from ₹773 crore to ₹860 crore, an increase of approximately 11.3%.
- Margins remain stable: The operating margin was around 8%, consistent with DMart’s value-retailing business model.
Avenue Supermarts Limited remains a well-established value-retailing business with consistent revenue growth, increasing profits and a business model built around competitive pricing and operational efficiency.
The company has continued to expand its store network and asset base, while its Q1 FY27 results show that revenue and profit are still growing. Its focus on customer value rather than aggressive margin expansion also supports the long-term business strategy.
However, slower sales growth compared with earlier years, higher borrowings, inventory-related efficiency concerns and a relatively high P/E valuation warrant a balanced approach.
