Retail sector surges with high double-digit revenue growth

New Delhi: Leading retail players reported strong double-digit revenue growth in the fourth quarter of FY26 on the back of a stable demand environment and resilient macroeconomic conditions.

Listed retail companies as Trent, Avenue Supermarts (D-Mart) and V-Mart, in their recent quarter updates reported around 20 per cent year-on-year growth in their latest quarterly updates, aided by aggressive store additions and steady consumption trends.

Trent, a Tata group firm reported around 20 per cent growth in standalone (domestic) revenue to Rs 4,937 crore in the March quarter of FY26. It was at Rs 4,106 crore in the corresponding January-March period a year ago.

"Revenue from sale of merchandise (excluding other operating income) grew 21 per cent and 19 per cent during the quarter and the year ended March 2026, respectively," said Trent, which operates popular fashion outlets under the Westside and Zudio retail format.

Trent has opened 22 Westside stores and 109 stores of its value retail format of Zudio.

According to Elara Capital Executive Vice President Karan Taurani, Trent's standalone revenue growth of 20 per cent appears to have been largely driven by strong store additions of 25 per cent YoY across both Westside and Zudio.

"In our view, a meaningful portion of the reported growth is likely attributable to network expansion rather than like-for-like (LFL) strength," he said.

Key takeaway of Trent's update is the sharp acceleration in Westside store additions, which grew 21 per cent year-on-year, marking the strongest expansion phase for the format in many years.

For the entire FY26, Trent's standalone revenue from operations was Rs 19,701 crore, up 18 per cent.

While standalone revenue from operations of Avenue Supermarts, which operates D-Mart retail chain, was up 19 per cent to Rs 17,204.50 crore as against Rs 14,462.39 crore in the corresponding quarter.

The Damani-family promoted entity's total number of stores as of March 31, 2026 stood at 500.

Value fashion retailer D-mart's said its "total revenue from operations for the quarter stood at Rs 971 crore compared to Rs 780 crore in in the corresponding quarter of the previous year, reflecting a year-on-year growth of 24 per cent," it said.

Same store sales growth (SSSG) was over 12 per cent for the quarter, said V-Mart, which opened 29 and closed six stores during the period.

This has resulted in a total operating portfolio of 577 stores as on March 31, 2026.

Similarly, leading FMCG makers have reported a resilient growth amidst a stable demand environment in the March quarter on a year-on-year basis, posting a healthy revenue expansion, even though geopolitical tensions in the Middle East markets remained a concern.

The makers, such as Marico, Dabur and AWL Agri Business (formerly Adani Wilmar), have reported growth on both volume and value basis, driven by pricing actions, category momentum and resilient domestic consumption, and growth from international markets except the conflict area.