Overview

• Avenue Supermarts reported a 16.3% year-on-year increase in consolidated revenue to ₹16,360 crore for Q1 FY26, driven by nine new store openings that lifted its network to 424 outlets.
• Consolidated net profit held steady at ₹773 crore, falling short of the Bloomberg consensus estimate of ₹883 crore.
• EBITDA rose 6% to ₹1,299 crore, but margins contracted to 7.9% from 8.7% a year earlier under deflationary pressures.
• CEO Neville Noronha attributed the margin squeeze to fierce FMCG competition with quick-commerce players and high deflation in staples and non-food items.
• Employee benefit expenses jumped 30.3% to ₹346.9 crore as wage inflation and investments in service levels and capacity kept operating costs elevated.