Avenue Supermarts reported a strong Q1 FY2027 with revenue at ₹18,343 crore and profit after tax of ₹936 crore. This marks a significant sequential improvement in both top-line and bottom-line performance.
Avenue Supermarts Reports Strong Q1 FY2027 Performance
Revenue from Operations: ₹18,343 crore
Profit After Tax (PAT): ₹936 crore
Reader Takeaway: Resilient growth in revenue and margins, offset by a temporary store closure for reconstruction.
What just happened
Avenue Supermarts, operating under the popular DMart brand, has announced its financial results for the first quarter of fiscal year 2027 (Q1 FY2027). The company reported a revenue from operations of ₹18,343 crore, an increase of 6.6% compared to the fourth quarter of the previous fiscal year (Q4 FY2026).
Why this matters
The results indicate a positive sequential recovery and growth for Avenue Supermarts. The reported profit after tax (PAT) for Q1 FY2027 stood at ₹936 crore, a notable increase of 29.1% from ₹725 crore in Q4 FY2026. EBITDA also saw a substantial jump of 24.0% to ₹1,527 crore from ₹1,231 crore in the previous quarter.
The backstory
Avenue Supermarts is a well-established retail chain in India, known for its everyday low-price strategy. The company operates stores under the DMart brand, focusing on a cluster-based expansion model to optimize logistics and operations. Its product mix typically includes foods, non-foods (FMCG), and general merchandise & apparel.
What changes now
Profitability metrics have shown an upward trend. The EBITDA margin improved to 8.3% in Q1 FY2027 from 7.2% in Q4 FY2026, and the PAT margin expanded to 5.1% from 4.2% in the same period. This suggests improved operational efficiency and cost management.
Risks to watch
One point of concern is the temporary closure of the Sanpada store in Navi Mumbai for reconstruction. While this store is included in the total count of 503 stores, its closure impacts local operations in the short term.
Peer comparison
(No peer comparison data provided in the filing.)
Context metrics (time-bound)
The company maintained a total of 503 stores by the end of Q1 FY2027. Like-for-like (LFL) growth was reported at 5.5%. Revenue per retail business area increased to ₹8,571 in Q1 FY2027 from ₹8,395 in Q4 FY2026.
What to track next
Investors will be keen to monitor the company's continued store expansion, same-store sales growth, and the productivity of its retail spaces. The successful reconstruction and reopening of the Sanpada store will also be a point to watch.