Avenue Supermarts (DMART) Investor update summary

Strategic Priorities and Business Model

• Focus remains on everyday low price, low-cost operations, and operational discipline as core competitive advantages, with a customer-first mindset central to growth plans.

• Store expansion is a key priority, targeting 15% annual growth in store count, with flexibility to adjust based on real estate realities and a cluster-based approach that increased store count from 214 in FY20 to 503 by Q1 FY27.

• Increasing openness to long-term leasing, with 68 stores now on lease, to support expansion in markets where land acquisition is challenging.

• Technology and data stack modernization is underway to enhance operational efficiency and decision-making.

• Product mix remains stable with foods at 58%, non-food FMCG at 20%, and general merchandise & apparel at 22% for FY25 and FY26.

Financial Performance and Operational Metrics

• Like-for-like store growth for stores older than two years was 8.1% in FY26, moderating from 24.2% in FY23.

• Revenue from operations grew from ₹41,833 crore in FY22 to ₹66,968 crore in FY26, with consolidated sales reaching ₹68,821 crore.

• EBITDA margin remained stable around 7.8%, with PAT margin at 4.8% in FY26.

• Retail business area expanded from 11.5 mn sq ft in FY22 to 20.6 mn sq ft in FY26.

• Revenue per sq ft peaked at ₹33,896 in FY23, then declined to ₹27,454 in FY26.

Balance Sheet and Efficiency Metrics

• Days inventory improved from 33.3 in FY22 to 29.2 in FY26, while days payables increased to 7.2.

• Debt/equity ratio remained low at 0.03 in FY26, with equity rising to ₹25,520 crore.

• Fixed asset turnover and inventory turnover ratios remained stable, indicating operational consistency.

• Return on net worth and capital employed moderated, with RONW at 13.5% and ROCE at 12.3% in FY26.

• Net cash flow from operations was ₹3,113 crore in FY26.