2026, Vol. 9, Issue 1

This study examines the relationship between working capital management and financial performance in Indian organized retail through a comparative analysis of Avenue Supermarts Ltd (DMart) and Trent Ltd. Using five years of post-pandemic data (FY2021–FY2025) sourced from Bloomberg, the study evaluates working capital efficiency using inventory turnover, cash conversion cycle, and supplier financing metrics, along with profitability indicators such as operating margin and return on invested capital.

Descriptive statistical analysis and Welch’s t-test are employed to assess differences in operational efficiency and financing strategies. The results indicate that DMart demonstrates superior working capital efficiency, while Trent achieves higher profitability and capital returns despite lower inventory turnover. The findings suggest that high inventory velocity alone does not guarantee superior financial performance, and that working capital strategies are inherently linked to business model orientation.

The study provides practical insights for managers and investors in evaluating retail firms based on efficiency, profitability, and capital allocation strategies.