Avenue Supermarts Faces Margin Pressure Amid Rising Costs and Competition
Avenue Supermarts Sees Strong Growth in March Quarter
Avenue Supermarts, the parent company of India's popular retail chain D-Mart, has reported a robust performance in the March quarter (Q4FY26). The company's standalone revenue saw a significant increase of 19% year-on-year, reaching ₹17,204 crore.
This growth was accompanied by an expansion of the Ebitda margin for the second consecutive quarter. The margin rose by 37 basis points in Q4 to 7.16%. A closer look at the performance of D-Mart stores reveals that those that are two years old or older grew at a rate of 10.8% in Q4FY26, up from 8.1% in Q4FY25.
Comparison of D-Mart Store Growth
| Quarter | Growth Rate |
|---|---|
| Q4FY25 | 8.1% |
| Q4FY26 | 10.8% |
This notable increase in growth rate highlights the continued success of D-Mart stores, particularly those with a longer operating history. The company's strong performance in the March quarter is likely to be a positive indicator for its future growth prospects.
Investor Takeaway
Investors should be cautious of margin pressure on Avenue Supermarts due to rising costs and competition.
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