Avenue Supermarts Earnings Summary — Q1 FY2027
Avenue Supermarts Posts 12.8% Profit Growth; Board Approves ₹1,000 Crore NCD Issuance
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 6.3% sequentially in Q1 FY2027.
- Revenue of ₹18,795 Cr is 14.9% higher year-on-year.
- Revenue has compounded at 18.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹861 Cr is 11.3% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 20.7% annualised across the period.
- Operating margin stands at 8.0% in Q1 FY2027.
- Operating margin expanded by 4 bps year-on-year.
- Over the last two years operating margin has contracted by 70 bps.
- PBT margin is 6.3%.
- Expense growth of 14.8% remained below revenue growth of 14.9%.
- Operating profit of ₹1,499 Cr is 15.4% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 72/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 18,795 | 17,684 | 18,101 | 16,676 | 16,360 | 14,872 | 15,973 | 14,445 | 14,069 | 12,727 |
| Expenses | Improving | 17,295 | 16,473 | 16,638 | 15,463 | 15,061 | 13,917 | 14,755 | 13,351 | 12,848 | 11,783 |
| Operating Profit | Improving | 1,499 | 1,211 | 1,463 | 1,214 | 1,299 | 955 | 1,217 | 1,094 | 1,221 | 944 |
| Operating Margin | Stable | 8.0% | 6.8% | 8.1% | 7.3% | 7.9% | 6.4% | 7.6% | 7.6% | 8.7% | 7.4% |
| Other Income | Stable | 26 | 18 | 17 | 20 | 19 | 25 | 24 | 34 | 42 | 38 |
| Interest | Strong Uptrend | 54 | 41 | 37 | 35 | 29 | 19 | 18 | 16 | 16 | 13 |
| Depreciation | Improving | 288 | 284 | 268 | 253 | 232 | 241 | 228 | 208 | 193 | 205 |
| Profit Before Tax | Improving | 1,183 | 904 | 1,175 | 945 | 1,057 | 720 | 995 | 903 | 1,054 | 763 |
| Tax | Improving | 323 | 248 | 319 | 260 | 285 | 170 | 272 | 244 | 280 | 200 |
| Net Profit | Improving | 861 | 657 | 856 | 685 | 773 | 551 | 724 | 660 | 774 | 563 |
| Net Margin | Stable | 4.6% | 3.7% | 4.7% | 4.1% | 4.7% | 3.7% | 4.5% | 4.6% | 5.5% | 4.4% |
Key Takeaways
- Consolidated revenue grew 14.88% YoY to ₹18,794.53 crore, driven by continued store network efficiency.
- Net profit (consolidated) increased 11.34% YoY to ₹860.44 crore, despite pressure from standalone subsidiary losses.
- The Board approved the issuance of Non-convertible Debentures (NCDs) totaling up to ₹1,000 crore to bolster liquidity and expansion.
- Operating margins saw a sequential improvement to 7.98% from 6.85% in the preceding quarter.
- Major leadership transition announced with Lalit Ahuja joining as COO and a planned shift for Parvez Vandrewala to Head - Centre of Excellence.
- Promoter group reclassification approved for Mr. Vijay Shankar Chandak to the public category, subject to stock exchange clearance.
Management Guidance
Management remains focused on the 'Everyday Low Cost - Everyday Low Price' model while navigating competition from digital and quick-commerce platforms. The approval of ₹1,000 crore in NCDs indicates a continued commitment to self-funded and debt-managed store expansion.
Sentiment Shift
Improving
Sequential recovery in margins and robust revenue growth signal resilience against quick-commerce headwinds.
Outlook
The company continues to scale its offline footprint while integrating e-commerce through Avenue E-commerce Limited. Future growth depends on sustaining revenue per square foot and managing inventory turnover amidst rising competitive intensity.
From the Annual Report (Key Quotes)
“The Board considered and approved issuance of Non-convertible Debentures aggregating up to Rs. 1,000 crore.”
“The Company is primarily engaged in the business of retail trades through offline and online channels.”
“Standalone figures of the March quarter are the balancing figure between the audited figures in respect of the full financial year.”
Official Quarterly Documents
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This summary is AI-generated from Avenue Supermarts's latest quarterly filing and earnings call. For informational purposes only — not investment advice.