Mumbai, July 11 (IANS) Avenue Supermarts Ltd, the operator of the DMart retail chain, saw its consolidated net profit fell marginally in the first quarter of FY26 on a year-on-year basis (YoY), the company said in an exchange filing on Friday.

The Mumbai-based retail chain operator posted a consolidated net profit of Rs 772.10 crore for the quarter ended June 2025, marginally lower than Rs 773.68 crore reported in the corresponding quarter a year back.

Revenue from operations rose over 16 per cent year-on-year to Rs 16,359.7 crore, up from Rs 14,069 crore in Q1FY25, driven by a steady rise in store count and higher footfalls.

According to the filing, operating performance, however, remained under pressure and competition and pressure on margins have impacted the company’s bottom line despite healthy revenue growth.

“Our revenue in Q1 FY26 grew by 16.2 per cent over the previous year. Profit after tax (PAT) grew by 2.1 per cent over the previous year. Two-year-old and older DMart stores grew by 7.1 per cent during Q1 FY26 as compared to Q1 FY25,” said Neville Noronha, CEO and Managing Director, Avenue Supermarts Limited.

The revenue growth impact of approximately 100-150 bps was primarily due to high deflation in many staples and non-food products. Gross margins are lower compared to the same period in the previous year, due to continued competitive intensity within the FMCG space, Noronha added.

The retail chain firm opened nine new stores during the quarter, taking the number to 424 as of June 30.

The shares of the company ended 2.40 per cent lower at Rs 4,069 apiece.

Earlier, Radhakishan Damani-led Avenue Supermarts Ltd reported a significant dip in its consolidated net profit at Rs 550.79 crore in the Q4 of FY25, from Rs 719.28 crore in the year-ago quarter (Q4 FY24).

–IANS

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