BENGALURU: Avenue Supermarts Ltd, operator of DMart, on Friday reported steady double-digit growth in FY26, even as intensifying competition from quick-commerce platforms continued to weigh on margins in its e-commerce business.
The Mumbai-headquartered company reported consolidated revenue of ₹17,683.8 crore for the January-March quarter (Q4FY26), up 19% year-on-year, while net profit rose 20% to ₹664.7 crore.
For FY26, consolidated revenue rose 16% to ₹68,820.7 crore, but a similar increase in expenses to ₹64,813.2 crore limited profit growth to 9.8%, with net profit at ₹2,964.4 crore.
“The geopolitical tensions led to some spike in consumer-buying during the month of March 2026 which normalized towards the end of the month. Our business has largely not witnessed any supply chain disruptions thus far,” said Ansul Asawa, chief executive, Avenue Supermarts.
The retailer added 58 stores during the quarter, taking its total store count to 500, as it steps up expansion to sustain growth and deepen its presence beyond metro markets amid rising competitive intensity.
Same-store sales growth rose to 10.8% during the quarter, up from 8.1% in the same period last year.
Foods remained the largest contributor to revenue in FY26 with a 57.9% share, followed by general merchandise and apparel at 22.28%, while non-food FMCG accounted for 19.82% of sales.
“Our DMart Ready business continues to focus in key metro towns. We have further rationalised our delivery channels with renewed focus on home delivery as the preferred channel. We have discontinued our operations in one city during the quarter. As of March 31, 2026, we operate in 18 cities,” said Vikram Dasu, whole-time director and chief executive, Avenue E-Commerce.
DMart Ready, the retailer’s online grocery platform offering home delivery and order-and-pick-up services, has been recalibrating its strategy amid intensifying competition from quick-commerce players, exiting cities and shifting focus towards metro markets and home delivery.
Sandeep Abhange, research analyst, Consumer & Midcaps at LKP Securities, said revenue growth was broadly in line with expectations, but margins remained under pressure as losses in the e-commerce business continued to weigh on consolidated performance.
Abhange said that while DMart continues to grow its topline, margin compression reflects a lack of operating leverage, with the online business widening the gap between standalone and consolidated profitability.
“The key watch for FY27 will be whether consolidated margins begin converging with standalone margins. Until the online business stops being a drag, pressure on DMart’s premium valuation could continue,” he added.
