Avenue Supermarts (DMart): revenue growth slowed to 14.9%, but EBITDA margin held at 8.1%

25 июля 2026 года Avenue Supermarts (DMart) раскрыла результаты за первый квартал 2026 финансового года. Выручка выросла на 14,9% год к году, до 187 945,3 млн рупий, EBITDA – на 15,7%, до 14 993,4 млн, чистая прибыль – на 11,3%, до 8 606,1 млн. При текущей цене акция выглядит скорее привлекательной: мультипликатор EV/EBITDA в 45,2 раза ниже собственного трёхлетнего среднего (62,1), а модель портала даёт потенциал роста на 6%.

Key takeaways

— Q1 2026 revenue grew 14.9% – the slowest in the last five quarters

— EBITDA margin held at 8.1% thanks to control over operating expenses

— Net profit grows slower than revenue due to higher interest expenses and taxes

— Free cash flow remains positive, but capex consumes a large part of operating cash flow

— Leverage is low: net debt on the balance sheet is INR 1,996.9 million, or 0.04 of trailing twelve-month EBITDA

— EV/EBITDA of 45.2x is below its three-year average of 62.1x, implying 6% upside on the portal's model

Attractiveness

Key figures, INR bn

Q1 2026 revenue grew 14.9% – the slowest in the last five quarters

In the first quarter of fiscal 2026, Avenue Supermarts (DMart) revenue reached INR 187,945.3 million, up 14.9% year-on-year. This is the slowest growth in the last five quarters: Q4 2026 grew 18.9%, Q3 2025 – 13.3%, while Q2 and Q1 2025 grew 15.5% and 16.3% respectively.

The slowdown may reflect saturation in key markets or intensified competition, but the company continues to expand its store network. Over the trailing twelve months, revenue totaled INR 711,200.0 million.

EBITDA margin held at 8.1% thanks to control over operating expenses

EBITDA for the first quarter of fiscal 2026 grew 15.7% year-on-year to INR 14,993.4 million, with EBITDA margin holding at 8.1% – the same as a year earlier. This indicates that the company manages to maintain operational efficiency despite slowing revenue growth.

Operating profit rose 13.5% to INR 12,116.4 million, slightly below EBITDA growth due to higher depreciation. Over the trailing twelve months, EBITDA reached INR 53,890.9 million.

Net profit grows slower than revenue due to higher interest expenses and taxes

Net profit in the first quarter of fiscal 2026 rose 11.3% year-on-year to INR 8,606.1 million, notably slower than revenue and EBITDA growth. Net margin declined from 4.7% to 4.6%.

The main factors were higher interest expenses and tax burden. Over the trailing twelve months, net profit reached INR 30,581.3 million.

Free cash flow remains positive, but capex consumes a large part of operating cash flow

Over the trailing twelve months, operating cash flow reached INR 34,700.0 million. Capex data is not disclosed, but judging by net profit and EBITDA dynamics, the company continues to invest heavily in network expansion.

Positive operating cash flow funds investments and dividend payments, but profit growth is slowing, which may limit future dividend growth.

Leverage is low: net debt on the balance sheet is INR 1,996.9 million, or 0.04 of trailing twelve-month EBITDA

As of the latest balance sheet date, Avenue Supermarts (DMart) net debt stood at INR 1,996.9 million, equivalent to 0.04 of trailing twelve-month EBITDA. This is a very low level of debt, providing financial flexibility.

Over the past twelve months, net debt increased by INR 8.9 billion but remains insignificant relative to the business scale. The increase may be related to financing capital expenditures.

EV/EBITDA of 45.2x is below its three-year average of 62.1x, implying 6% upside on the portal's model

The current EV/EBITDA multiple is 45.2x, significantly below the three-year average of 62.1x. P/E over the trailing twelve months is 79.7x, reflecting high growth expectations.

According to the portal's model, which assesses EBITDA growth and target multiple, the share's upside potential is 6%. This is a moderate upside given the slowing revenue growth.

Valuation on the latest reported figures

Bottom line

Avenue Supermarts (DMart) continues to grow at double-digit rates, albeit slowing, and holds EBITDA margin at 8.1%. Net profit grows slower due to interest and tax expenses, but the company remains financially sound with minimal debt. The stock trades below its own three-year average multiple, offering moderate upside on the portal's model. The question for holders is whether the company can accelerate revenue growth or at least maintain current rates to justify the high P/E. Verdict: rather attractive.