Avenue Supermarts reported a standalone net profit of ₹936 crore for the quarter ended June 30, 2026, representing a 12.8% increase from ₹830 crore in the corresponding period of the previous year. Revenue from operations grew 15.1% to ₹18,343 crore from ₹15,932 crore in Q1FY26. The Board of Directors approved the financial results at its meeting held on July 11, 2026, following a review by the Audit Committee.

Financial Performance

The standalone financial results for Q1FY27 show total income at ₹18,381.25 crore, compared to ₹15,966.25 crore in the year-ago quarter. Total expenses for the period stood at ₹17,129.25 crore. The basic earnings per share (EPS) for the quarter increased to ₹14.35 from ₹12.75 in the previous year. On a consolidated basis, the company reported a net profit of ₹860.44 crore versus ₹772.81 crore in the year-ago period, with revenue from operations at ₹18,820.31 crore compared to ₹16,379.13 crore in Q1FY26.

The following table summarises the key standalone financial metrics for the quarter:

Consolidated Performance

On a consolidated basis, Avenue Supermarts reported EBITDA of ₹15B rupees for Q1FY27, compared to ₹13B rupees in the year-ago quarter. The consolidated EBITDA margin improved marginally to 7.98% from 7.94% year-on-year. The standalone operating margin improved to 8.3% in Q1FY27 from 8.2% in Q1FY26, while the standalone net profit margin stood at 5.1%. The debt-equity ratio was recorded at 0.10 times. The statutory auditors, S R B C & Co LLP, issued a limited review report confirming the results were prepared in accordance with Indian Accounting Standards.

The consolidated performance metrics are summarised below:

Key Operational Metrics

Avenue Supermarts continued its cluster-based expansion strategy, reaching a total of 503 stores by the end of Q1FY27, including 3 new additions during the quarter. The retail business area stood at 20.7 million sq ft. Foods contributed 54.93% to revenue, while Non-Foods (FMCG) and General Merchandise & Apparel accounted for 19.60% and 25.47%, respectively. Like-for-like growth for the quarter came in at 5.5%, with flat growth reported in older metro stores, while non-metro stores demonstrated stronger performance. DMart Ready exited seven more cities during the quarter, reducing its presence to 11 cities.

Brokerage Views

Following the Q1FY27 results, five major brokerages shared their assessments of Avenue Supermarts, with ratings ranging from Buy to Sell. The divergence largely centres on the impact of quick-commerce competition on metro store growth, the trajectory of DMart Ready, and the sustainability of margin expansion amid rising employee costs. The table below summarises the latest brokerage ratings and target prices:

MOSL maintained a Buy rating with a target price of ₹4,800, noting that 1QFY27 revenue grew 15% YoY despite slower 5.5% like-for-like growth. The brokerage highlighted flat metro store growth but strong non-metro performance, with gross margin expansion partially offset by higher employee costs. Store additions and DMart Ready's footprint rationalization remain key focus areas.

Jefferies maintained a Hold rating with a target price of ₹4,500, observing that the 1QFY27 performance was better than the headline suggested due to Q4 pre-buying effects. The brokerage flagged flat growth in older metro stores as a concern linked to quick-commerce competition, noted that gross margins hit a multi-quarter high, but pointed out that EBITDA margin expansion was capped by over 30% staff cost growth.

JPMorgan maintained a Neutral rating while cutting its target price to ₹4,250, noting that Q1 EBITDA margin remained stable on gross margin expansion. The brokerage highlighted that 5.5% like-for-like growth disappointed due to weak metro store performance amid quick-commerce competition, while non-metro stores remained resilient, suggesting near-term stock performance may stay subdued.

Goldman Sachs maintained a Sell rating with a target price of ₹4,000, pointing to slowing revenue growth despite store additions and higher FMCG inflation. The brokerage cited flat metro growth due to quick-commerce competition, DMart Ready's focus on large cities, flat EBITDA margins amid higher operating costs, and PBT growth of 11.9% YoY lagging due to higher depreciation and interest costs.

Citi maintained a Sell rating with a target price of ₹3,400, the most bearish among the five. The brokerage noted that 1QFY27 same-store growth slowed to 5.5%, driving revenue and EPS growth below estimates, with flat growth in older metro stores attributed to quick-commerce competition. Citi also flagged slower DMart Ready growth after the exit from seven cities, rising losses, profit growth lagging revenue, and cut its FY27–29 revenue and EPS estimates by 4–6% and 5–7%, respectively.

Corporate Actions and Appointments

The Board of Directors approved the re-appointment of Mr. Bhaskaran N as Whole-time Director and Chief Operating Officer for a term commencing October 17, 2026, to May 31, 2028, subject to shareholder approval. Additionally, the board appointed Mr. Lalit Ahuja as Chief Operating Officer, effective July 13, 2026. Mr. Parvez Vandrewala will transition from Chief Operating Officer to Head - Centre of Excellence effective November 1, 2026. The board also approved the reclassification of Mr. Vijay Shankar Chandak from the Promoter Group to the Public category.

Commercial Papers Issued

During the quarter, the company allotted commercial papers totaling ₹1,000 crore. The issuances included ₹500 crore at a discount rate of 6.60% per annum maturing on June 29, 2026, ₹300 crore at 7.18% per annum maturing on September 7, 2026, and ₹200 crore at 6.70% per annum maturing on September 28, 2026. All papers carry an ICRA A1+ credit rating.

Avenue Supermarts Limited's board has approved the issuance of Non-Convertible Debentures (NCDs) aggregating up to ₹1,000 crore to raise capital. The decision was taken during a board meeting held on July 11, 2026. The funds will be mobilized through a private placement basis in one or more tranches, providing the company with financial flexibility for its operations.

The approval allows the company to issue debt securities up to the specified limit, adhering to regulatory frameworks. The specific details regarding the coupon rate, tenor, and maturity date of the NCDs were not disclosed in the filing. These parameters are typically determined based on market conditions at the time of issuance.

Key Details of the NCD Issuance

The following table summarises the key parameters of the approved NCD issuance:

Regulatory Compliance

The company stated that necessary details as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 will be submitted. This compliance is in conjunction with the SEBI Master Circular No. HO/49/14/14(7)2025-CFDPD2/I/3762/2026 dated January 30, 2026. The relevant information will be provided to the stock exchanges at the time of issuance and/or allotment of the NCDs.

Meeting Details

The board meeting, which convened to discuss this agenda among other matters, commenced at 1:30 p.m. and concluded at 2:50 p.m. on the same day. The filing was signed by Ashu Gupta, Company Secretary & Compliance Officer of Avenue Supermarts Limited.