Avenue Supermarts Earnings Summary — Q4 FY2026

• Revenue for Q4 FY2026 reached INR 17,684 Cr, a 19% increase compared to the same quarter last year.
• Net profitability remains resilient with a 19% YoY growth, although it saw a significant sequential decline of 23% from the festive Q3 high.
• Operating margins show a slight YoY improvement to 7%, but remain under pressure from intensifying retail competition.
• The balance sheet remains exceptionally strong with minimal debt, though total borrowings increased to INR 2,425 Cr for expansion.
• Depreciation and interest costs have scaled up, reflecting the company's aggressive store expansion and capital expenditure cycle.
• Inventory turnover and working capital management continue to be industry-leading despite the scale-up to over 300 stores.

Management emphasizes a long-term focus on the Every Day Low Cost - Every Day Low Price (EDLC-EDLP) model. Expansion continues to prioritize owned stores over leased premises to secure long-term operational efficiency.

Stable

While YoY growth remains solid at ~19%, the sequential dip in profit and rising interest/depreciation costs suggest a heavy investment phase that may weigh on short-term earnings growth.

The company is positioned as a high-quality compounder focusing on volume-led growth. Future performance depends on navigating the rising threat of quick-commerce while maintaining high revenue per square foot in physical formats.