Avenue Supermarts Limited — Investor Meet, 04-08-2026: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:**

Avenue Supermarts reported an FY26 turnover of ₹67,000 crore, with a 16% increase in sales. EBITDA margin stood at 7.8%, and Profit After Tax (PAT) was ₹3,224 crore, representing 4.8% of turnover. The company generated ₹4,168 crore in cash from operations. Like-for-like store growth (stores over two years old) was 8.1%. DMart Ready (e-commerce) recorded 17% sales growth but a net loss of ₹307 crore due to increased EBITDA drain.

**Management Commentary and Outlook:**

The MD & CEO affirmed the business's solid fundamentals and a significant opportunity for store expansion, targeting approximately 15% new stores annually. The company is open to long-term leases where strategic, alongside investing in management and technology capabilities. DMart Ready will concentrate on 11 key cities to achieve a sustainable and profitable e-commerce model, offering 6-hour deliveries and tailored assortments, without pursuing immediate quick commerce. The gross margin goal remains 14-15%, with net margins around 5%.

**Operational Updates:**

DMart reached a milestone of 500 stores, adding 85 stores last year, with 68 currently operating on long-term leases. Productivity initiatives are in place to optimize employee costs, and the company maintains a 2-3 year pipeline for land acquisition.

**Analyst Q&A Highlights:**

Management acknowledged metro store slowdowns due to saturation and competition. The private label strategy is unchanged, focusing on value. They foresee no significant impact from quick commerce in Tier 1/2/3 cities, emphasizing DMart's role as the best value retailer.

**Strategic Themes & Sentiment:**

The company's strategic tone is confident, prioritizing disciplined expansion and profitable execution across its offline and online channels. The focus remains on building a sustainable, customer-value-driven business model.

**Investor Angle:**

Management is committed to long-term, profitable growth through disciplined expansion, operational excellence, and consolidating the sustainability of its DMart Ready e-commerce platform.