DMart board approves ₹1,000 crore NCD issue as Q1 profit jumps 12.8%

Avenue Supermarts Ltd, the operator of India’s DMart supermarket chain, has approved a non-convertible debenture (NCD) issue worth ₹1,000 crore.

The board’s decision coincides with the retailer’s announcement of robust first-quarter financial results, marking a dual development in capital structure and operational performance.

8% year-on-year rise in net profit for the quarter, while revenue expanded by 15.

The company reported a 12.8% year-on-year rise in net profit for the quarter, while revenue expanded by 15.1% to reach ₹18,343 crore.

These figures underscore sustained top-line growth and margin resilience in a competitive retail landscape.

However, Avenue Supermarts did not disclose the specific intended use of the proceeds from the new debt issuance, leaving investors to speculate on whether the funds will support store expansion, working capital, or balance sheet optimization.

The NCD approval adds to the company’s leverage profile, a move that warrants scrutiny given the current interest rate environment.