• Event Type: Annual Analyst/Institutional Investors Meet (Conference Call)
• Date and Time: July 28, 2026 (time not specified in transcript)
• Purpose: Discussion of FY26 performance, strategic updates, and future outlook following the transition to new CEO Anshul Asawa.
• Management Participants:
- Mr. Anshul Asawa – Managing Director and Chief Executive Officer
- Mr. Ramakant Baheti – Group Chief Financial Officer
- Mr. Niladri Deb – Chief Financial Officer
- Mr. Vikram Dasu – Chief Executive Officer, Avenue E-commerce Limited
- Mr. Rushabh Ghiya – Investor Relations
• Presentation Availability: A presentation was uploaded to exchanges and the company website the week prior to the call.
• Transcript Availability: The full transcript of the conference call is available on the company website at https://www.dmartindia.com/investor-relationship.
• UPSI Statement: The call included standard safe harbor statements, but no explicit statement about unpublished price sensitive information was mentioned in the provided transcript.
• Financial Period Discussed: FY26 (Year ended March 2026)
• Key Financial Highlights (FY26):
- Turnover: ~INR67,000 crores (16% growth)
- EBITDA Margin: 7.8%
- Profit After Tax: INR3,224 crores (4.8% margin)
- Cash from Operations: INR4,168 crores
- Inventory Days: 33.2 (increased due to new warehouses)
- Days Payables: 7.2 (flat)
- Total Debt: INR2,267 crores (includes AS 116 adjustment; net borrowing ~INR965 crores)
- Fixed Asset Turnover: 3.2x
- Inventory Turnover: 12.8x
- Return on Net Worth: 13.5%
- ROCE: 17.1%
- Retail Business Area: 20.6 million square feet
- Revenue per Square Foot: INR33,422 (flat)
- Bill Cuts: ~40 crore
- Like-for-Like Store Growth (stores >2 years old): 8.1%
• Subsidiaries Performance:
- Avenue E-commerce (online grocery): Sales grew 17%, EBITDA declined 43% (84 bps drain), net loss of INR307 crore
- Align Retail (grocery packing): Sales grew 16.5%, PAT grew 24%
- Avenue Food Plaza (fast food): Sales grew 35.5%, returned to profitability with 9% PAT (from loss last year)
• Strategic Themes and Forward-Looking Statements:
- Store Expansion: Internal target of ~15% annual store growth on base (85 stores added in FY26; 500+ total stores). Focus on cluster-based approach, entering 5 new states in FY26. Open to long-term leasing (68 leased stores currently, 15 added in FY26).
- E-commerce Strategy: Consolidating DMart Ready to 11 key cities to prove sustainable, profitable model. Focus on improving assortment tailored for online, delivery within 6 hours, and user experience. No plans for quick commerce (10-30 min delivery) or omnichannel integration with physical stores.
- Technology & Capabilities: Investing in modernizing technology and data stack across operations, supply chain, and categories. Building management bandwidth for larger footprint.
- Competition: Acknowledged impact of quick commerce on metro stores, but emphasized enduring value proposition of EDLP for large basket shoppers. No significant change in vendor relationships or FMCG focus.
- Margins: Target gross margin range of 14-15% and net margin around 5% remains unchanged.
- Private Labels: 20-20-20 strategy unchanged. No conscious effort to drive shelf space; customer choice driven.
- Category Mix: Stable with slight dip in non-food, marginal increase in food. GMA expected to remain in 22-23% range.
- Metro Slowdown: Attributed to store saturation, high throughput, capacity constraints, and competition. Addressing through new store openings in same areas.
- Employee Cost: Increased significantly (33% in standalone) due to investment in capabilities, service levels, and wage code implementation.
- Funding: Approved INR1,000 crore NCD issuance for capex flexibility and reducing borrowing costs.
Additional Notes Section
• Attachments: The regulatory filing intimates the exchange that the transcript of the conference call is enclosed.
• Financial Data: Extensive financial data for FY26 was disclosed and discussed during the call.
• Logistical Details: Dial-in numbers and access codes were not included in the provided transcript.