Avenue Supermart's Q1 results, commentary

1) Shares of Avenue Supermart's Ltd., the parent company of hypermarket chain D-Mart, will be in focus on Monday, July 14, after the company reported another weak set of numbers for Q1FY26. -

2) For the June quarter, D-Mart's revenue rose 16% year-on-year to ₹16,359.7 crore, but net profit remained flat at ₹772.8 crore, compared to ₹773.7 crore in the same period last year. 3) Gross margins narrowed to 15.3% from 15.6%. EBITDA grew 6.4% to ₹1,299 crore from ₹1,221 crore, while EBITDA margins slipped to 7.9% from 8.7%. 4) Shares of Avenue Supermarts Ltd. ended 2.40% lower on Friday at ₹4,069. The stock has risen over 14% so far in 2025. 5) D-Mart said the revenue impact of 100-150 basis points was primarily due to high deflation in staples and non-food products. Gross margins were lower due to continued competitive intensity, while operating costs were higher on account of service level improvements, capacity building, and wage inflation. 6) Overall results are not good and hence expect the stock to be under pressure. 7) All this is for information. This is not a buy/sell recommendation. Thank you, Technofunda24