DMart Q1 FY26 Results: Revenue Up, Profit Flat

Avenue Supermarts (DMart) posted mixed Q1 results for FY26. Here’s the quick breakdown: Profit: • Consolidated Net Profit: ₹773 Cr (down 0.1% YoY) • Standalone Net Profit: ₹830 Cr (up 2.1% YoY) Revenue: • Consolidated Revenue: ₹16,359.7 Cr (up 16.3% YoY) • Standalone Revenue: ₹15,966.3 Cr (up 16% YoY) Operating Performance (EBITDA): • EBITDA: ₹1,299 Cr (up 6.4%) • EBITDA Margin: 7.94% (vs 8.68% last year) What Pressured Profits? • Higher operating costs (especially wages & service upgrades) • Lower margins due to rising competition in FMCG and price deflation in staples/non-food items • Increased pressure from quick commerce rivals Employee Costs: • Up 30.3% YoY to ₹346.9 Cr • Reflects industry-wide wage inflation amid hiring crunch Expansion Update: • Added 9 new stores in Q1 • Total stores: 424 as of June 30, 2025 Other Key Metrics: • Like-for-like sales growth: 7.1% (vs 9.1% in Q1FY25) • Sales per sq ft: ₹8,779 (up 1.5% YoY but below Q3 peak of ₹9,317) Market Reaction: • Stock closed down 2.51% at ₹4,064.20 on July 11 (NSE) In Simple Words: DMart is growing fast in terms of revenue and store count, but rising costs and tight margins are putting pressure on profits. Competition from quick commerce players is also heating up. Keep an eye on cost control and margin recovery in the coming quarters.