India's Avenue Supermarts, the owner of the retail brand Dmart, is set to tap the corporate debt market for the first time in seven years. According to reports from The Economic Times, the company is looking to raise around ₹10 billion ($104.81 million) through bonds with a maximum maturity of three years. The retailer has alerted merchant bankers to work on the issue, with the deal expected to go through in the first half of September.
As reported by The Economic Times, Avenue Supermarts will not prefer anything above three-year papers for this issuance. The company last issued bonds in October 2019, which carried a 13-month maturity, but had redeemed them within six months. According to bankers, there is significant interest from mutual funds in these investment opportunities, with the company's bonds having been assigned an AAA rating by ICRA on August 25. The company's strong market position as the largest organised food and grocery retailer operating 503 stores as of June 30, 2026, under the established Dmart brand name continues to attract investor confidence.
According to ICRA's latest rating report, the agency considered Avenue Supermarts' consolidated financials for the rating assignment. The company demonstrated strong financial performance with operating income growing from ₹59,358.1 crore in FY2025 to ₹68,820.7 crore in FY2026, while maintaining healthy profitability metrics. As reported by ICRA analysts, the ratings favourably factor in the company's large supply chain network, strong procurement abilities and competitive pricing, which resulted in healthy footfall and steady gross margins. The company's PAT increased from ₹2,707.5 crore in FY2025 to ₹2,969.9 crore in FY2026, with OPBDIT/OI margin improving from 7.6% to 7.5% during the same period.
As reported by The Economic Times, mutual funds are keen to invest in the rarely-issued securities, with the deal expected to go through in the first half of September. The company's return to the debt market after a seven-year hiatus represents a significant development in India's retail sector financing landscape, particularly given the strong credit profile and market position of Avenue Supermarts in the organised food retail segment. The company's interest coverage ratio of 64.7 times as of FY2025 demonstrates robust financial health, while its total debt to OPBDIT ratio of 0.2 times indicates prudent leverage management.
