Avenue Supermarts Faces Financial Challenges Amid Record Net Sales and Declining Cash Flow

Avenue Supermarts, a prominent player in the diversified retail sector, has recently undergone a financial trend adjustment reflecting challenges in its performance metrics. The company reported its highest net sales for the quarter ending September 2025, reaching Rs 16,676.30 crore. However, this positive aspect is overshadowed by a significant decline in operating cash flow, which stood at Rs 2,597.31 crore, marking a low point for the year. Additionally, the return on capital employed (ROCE) for the half-year was recorded at 13.16%, also reflecting a downturn.
In terms of market performance, Avenue Supermarts has experienced fluctuations compared to the Sensex. Over the past week, the stock returned -0.58%, while the Sensex gained 1.13%. The one-month performance shows a decline of 8.92% for Avenue Supermarts against a modest Sensex increase of 0.87%. However, on a year-to-date basis, the company has outperformed the Sensex with a return of 20.22% compared to the index's 6.35%. Despite the recent challenges, Avenue Supermarts has shown resilience over a five-year period, achieving a return of 115.85%, surpassing the Sensex's 107.84%.