X5 Q1 2026: Revenue Growth Decelerates, EBITDA Margin Expands, Net Profit Falls

X5 Retail Group reported Q1 2026 revenue of RUB 1,190.6 bn, up 11.3% YoY, a deceleration from the 16.6% growth seen in H2 2025. EBITDA rose 24.9% to RUB 62.4 bn, with margin expanding 57 bp to 5.2%. However, net profit fell 27.6% YoY to RUB 13.3 bn, despite strong operating performance.

Q1 2026 YoY Growth (%)

What drove the result

Revenue growth was driven by net retail sales +10.8% YoY, with selling space expanding 8.0% and LFL growth of 6.1%. X5 Digital continued to outperform, growing 26.6% YoY and contributing 7.5% of consolidated revenue. Gross profit rose 14.8% to RUB 286.9 bn, with margin up 74 bp to 24.1%, reflecting pricing power. The decline in net profit, despite a 31.2% increase in operating profit, points to higher finance costs or tax, though the company did not provide a detailed bridge.

Key figures

Outlook

X5 did not provide new guidance or dividend announcements in this release. The company remains conservative on shareholder returns, with no dividend declared. Investors should watch whether the deceleration in revenue growth continues, and whether the company can sustain margin expansion in a competitive environment. The sharp drop in net profit warrants monitoring of finance costs and tax rates.