Avenue Supermarts Dmart expanded its retail footprint with the opening of a new store at Deva Road in Barabanki, Uttar Pradesh, on August 4, 2026. The addition brings the company’s total number of stores to 506, marking a incremental step in its nationwide growth strategy. This expansion reinforces the company’s presence in the northern region, specifically targeting consumer demand in Uttar Pradesh.

The company notified both the Bombay Stock Exchange and the National Stock Exchange of India Ltd regarding the new opening. The intimation was issued from its registered office in Thane, Maharashtra, and signed by Ashu Gupta, Company Secretary & Compliance Officer.

Store Expansion Details

The latest addition is located in Barabanki, a district in Uttar Pradesh. Below are the key details of the expansion:

Regulatory Compliance

In accordance with regulatory requirements, Avenue Supermarts Limited submitted the store opening intimation to the Corporate Services Department of BSE Limited and the Corporate Communications Department of NSE. The filing serves as an official record of the company’s operational milestones for investor awareness.

What the Numbers Show

The increase to 506 stores indicates steady, albeit incremental, physical expansion. With each new opening adding one unit to the total, the company maintains a controlled pace of rollout. The focus on locations like Barabanki suggests a strategy to penetrate tier-2 and tier-3 markets in high-population states such as Uttar Pradesh, diversifying its geographic risk while tapping into emerging consumer bases.

Avenue Supermarts Limited reported a turnover of close to INR67,000 crores for the financial year ended March 2026, with profit after tax (PAT) reaching INR3,224 crores. The company achieved an EBITDA margin of about 7.8% and generated INR4,168 crores in cash from operations. Like-for-like store growth, defined as stores older than two years, stood at 8.1%, while total retail business area expanded to 20.6 million square feet. Revenue per square foot remained flat at INR33,422.

Management emphasized that the core business fundamentals remain strong, driven by the everyday low-price model. Anshul Asawa, Managing Director and CEO, stated that operational discipline and customer-first mindset are non-negotiable. The company plans to invest heavily in technology and data stack modernization to support sharper execution across its growing footprint. Niladri Deb, Chief Financial Officer, noted that inventory days increased to 33.2 due to new warehouse openings, while days payables remained flat at 7.2, reflecting continued vendor payment efficiency.

Financial Performance and Subsidiary Results

The standalone sales grew by close to 16%, with gross margin expanding by 16 basis points. Employee costs rose by 27 basis points due to investments in service levels, leading to an almost flat EBITDA of about 7.85%. At a consolidated level, sales grew about 16%, EBITDA grew about 16%, and PAT grew about 10%. Return on net worth came in at about 13.5%, and return on capital employed (ROCE) was about 17.1%, slightly lower than the prior year.

Key subsidiaries showed mixed performance. Avenue E-commerce, handling online grocery, saw sales grow by about 17% but EBITDA declined by about 43%, resulting in a net loss of INR307 crore. Align Retail, the grocery packing business, grew about 16.5% with PAT up 24%. Avenue Food Plaza, managing fast food adjacent to DMart stores, grew about 35.5% and returned a PAT of 9%, turning around from a loss in the previous year.

Store Expansion and Leasing Strategy

Avenue Supermarts aims to open around 15% of its store base annually, targeting approximately 75 new stores given its current base of over 500 units. Last year, the company opened 85 stores, including 15 on lease. Currently, 68 stores operate under long-term leases. Asawa confirmed openness to leasing where land acquisition is challenging, particularly in markets like NCR, provided terms meet requirements. The company maintains a pipeline of two to three years for store execution based on land acquisition portfolios.

E-commerce Focus and Competition

The company has narrowed its DMart Ready e-commerce focus to 11 key cities to prove a sustainable, profitable model with six-hour delivery slots. Vikram Dasu, CEO of Avenue E-commerce Limited, explained that exiting seven cities was due to minimal business contribution and low order density. The strategy prioritizes assortment tailored for online buyers and improved user experience over rapid geographic expansion. Management believes the brick-and-mortar model remains robust against quick commerce competition, citing significant value savings for large basket shoppers in Tier 1 and Tier 2 cities.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE192R01011/a583c264-c2df-45d5-a279-da8f157a3019.pdf