Company Overview
Avenue Supermarts Limited (DMart) reported strong financial performance for FY 2025-26 with revenue growth of 15.88% to ₹66,968.03 crore and net profit increase of 10.14% to ₹3,223.93 crore. The company expanded significantly by adding 85 new stores, reaching a total of 500 stores across 15 states and 1 union territory, with retail business area of 20.58 million sq. ft.
Financial Performance & Operations
Key financial metrics showed robust growth with EPS increasing to ₹49.54 from ₹44.98 in FY25. The company maintained its product category mix with Foods contributing 57.90%, Non-Foods (FMCG) at 19.82%, and General Merchandise & Apparel at 22.28%. Operational highlights included 39.8 crore bill cuts and revenue per retail business area sq ft of ₹33,422. Capital expenditure reached ₹3,942 crore on property, plant and equipment, with total assets growing to ₹29,524 crore.
Capital Structure & Subsidiaries
The company allotted 12,26,055 equity shares under ESOP schemes, increasing paid-up share capital to ₹651.96 crore. Subsidiary performance was mixed: Avenue E-Commerce Limited (DMart Ready) reported revenue of ₹4,093.61 crore with losses of ₹306.53 crore, while Align Retail Trades generated ₹3,871.26 crore revenue with ₹46.48 crore PAT. The company maintained strong credit ratings with CRISIL AAA/Stable and ICRA A1+ ratings.
Corporate Governance & Leadership
Significant leadership changes occurred with Mr. Ignatius Navil Noronha ceasing as Managing Director & CEO and Mr. Anshul Asawa appointed as CEO from February 1, 2026, and as Managing Director from April 1, 2026. Ms. Kalpana Unadkat was appointed as Chairperson from April 1, 2026. The board composition included 8 directors with 38% women representation on the board.
Related Party Transactions & AGM Matters
The company seeks shareholder approval at its 26th AGM for material related party transactions totaling ₹4,026 crore with subsidiary Avenue E-Commerce Limited, including sale of goods (₹3,500 crore), investment in share capital (₹500 crore), and various service arrangements. Additional resolutions include reappointment of Mr. Bhaskaran N as Whole-time Director with remuneration up to ₹6.5 crore fixed and ₹1.8 crore variable annually, and renewal of commission payments to Independent Directors not exceeding 1% of net profits for five years from April 2027.
ESG Initiatives & CSR
DMart demonstrated strong ESG commitment with 301 green building certifications, 308 solar plants with 54.5 MW capacity (meeting 24.5% of energy requirements), and 267 sewage treatment plants. CSR spending reached ₹53.63 crore (74.15% of prescribed amount) impacting over 143,000 students through the School Excellence Programme across 460+ schools.
Regulatory Compliance & Risk Factors
The company maintained full regulatory compliance with unqualified audit opinions from S R B C & Co LLP, though auditors emphasized capital expenditure on land and buildings and inventory existence as key audit matters. Risk factors identified include maintaining everyday low pricing strategy, real estate availability, talent retention, inventory management, and cybersecurity challenges.
Shareholding & Market Position
Promoters held 74.51% of shares with public shareholding at 25.49%. The company maintained its position as a leading organized retail player with continued expansion plans and strategic investments in both physical and e-commerce capabilities through its DMart Ready platform.