X5 Q1 2026: Revenue growth decelerates, margins expand, but net profit plunges
X5 Retail Group reported Q1 2026 revenue of RUB 1,190.6 bn, up +11.3% YoY, but this marks 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 sharply by -27.6% YoY to RUB 13.3 bn, dragged by below-the-line items.
Key YoY Growth Rates, Q1 2026 vs Q1 2025
What drove the result
Net retail sales grew +10.8% YoY, driven by 8.0% selling-space expansion and 6.1% LFL growth. X5 Digital continued to outperform, with sales up +26.6% YoY, now contributing 7.5% of consolidated revenue. Gross profit rose +14.8% to RUB 286.9 bn, with margin expanding 74 bp to 24.1%, reflecting pricing power despite food inflation. The sharp net profit decline contrasts with a +31.2% operating profit increase, pointing to higher finance costs or tax.
Key Figures
| Metric | Q1 2025 | Q1 2026 | Change |
|---|---|---|---|
| Revenue (RUB bn) | 1,069.8 | 1,190.6 | +11.3% |
| EBITDA (RUB bn) | 49.9 | 62.4 | +24.9% |
| Net Profit (RUB bn) | 18.4 | 13.3 | -27.6% |
| Adj. EBITDA margin pre-IFRS 16 | 4.8% | 5.4% | +62 bp |
| Gross margin | 23.4% | 24.1% | +74 bp |
Outlook
X5 did not provide new dividend or guidance updates in this release. The deceleration in revenue growth from H2 2025's +16.6% to Q1 2026's +11.3% warrants attention, though margin expansion and strong digital performance offer some offset. Net debt fell sharply in the quarter, improving the balance sheet. Watch for further commentary on cost pressures and the trajectory of LFL sales.