Brokerage firms have largely expressed caution towards DMart operator Avenue Supermarts Ltd., primarily citing missed earnings expectations on both revenue and margins during the first quarter of fiscal 2026.
“Revenue growth impact of approximately 100-150 basis points was primarily due to high deflation in many staples and non-food products,” Chief Executive Officer Neville Noronha said.
Gross margins are lower as compared to the same period in the previous year, due to continued competitive intensity within the FMCG space, he added. “Operating costs are higher due to efforts on improving service levels, capacity building and inflation at entry level wages.”
DMart parent Avenue Supermarts Ltd.’s net profit was flat in the first quarter of financial year 2026, thereby missing the analysts’ estimates by a significant margin.
The retailer’s consolidated bottom line came in at Rs 772.81 crore during the quarter under review, down marginally by 0.1% as compared to Rs 773.68 crore in the year-ago period, according to an exchange filing on Friday.
