The Cash Flow Reversal Nobody Was Waiting For
Over these 12 quarters: share price Rp2,960 to Rp1,370 (-54%); operating income 0.77 to 1.24 Rp trillion; operating income margin 2.9% to 3.8%. One graph in actual numbers: bars are the quarter's operating income, over them the share price at quarter-end (left axis) and the operating income margin (right axis); each line is fitted to its own range, so read the timing, not the heights. Prices are adjusted for splits.
This is PT Sumber Alfaria Trijaya Tbk's unaudited interim consolidated financial statements for the six months ended June 30, 2026, authorized for issue by the Board of Directors on July 29, 2026. Net revenue rose 6.49% to Rp67,955,648 million, from Rp63,812,732 million, and net income attributable to owners rose 7.50% to Rp2,025,119 million, from Rp1,883,809 million (see Key Financial Metrics) - a modest deceleration from Q1 2026's 7.53%/10.30% pace, but still healthy growth on both lines.
The number worth pausing on isn't the P&L at all. Free cash flow rose 21.80% to +Rp3,482,574 million, from +Rp2,859,281 million - the first year-over-year FCF increase since H1 2025, breaking a streak of three straight quarterly declines (9M 2025 -19.01%, FY2025 -7.25%, Q1 2026 -9.04%). Net cash from operating activities grew 13.03% to Rp4,467,084 million, and this time it wasn't riding an unexplained swing in the "other operating activities" cash-receipts line that has driven several prior quarters' FCF moves - that line actually fell 49.06% year-over-year (Rp1,507,260 million to Rp767,381 million), while cash receipts from customers grew a more mundane 6.93%. Capex on fixed-asset acquisitions also fell 9.89% to Rp984,510 million. This quarter's FCF swing looks like it came from the actual business rather than a single unexplained cash-flow line.
None of that showed up as good news everywhere. Elsewhere in the same filing, the Company's Rp500,000 million stake in listed digital bank PT Bank Aladin Syariah Tbk closed the period at an accumulated unrealized fair-value loss of 85.29% of cost - a sharp reversal from Q1 2026's 24.71% loss (see Beyond the Usual). The stock also stopped buying back its own shares: cumulative treasury purchases sat unchanged at 432,669,000 shares between March 31 and June 30, 2026, meaning the Company made zero additional purchases this quarter even though its own buyback authorization - already past its stated March 6, 2026 deadline when Q1 2026 was written - remains formally undisclosed as completed, extended, or lapsed.
The Prescription
Keep the cost and cash-flow discipline that showed up this quarter: free cash flow grew this quarter for a reason that traces to the actual business (higher customer cash receipts, lower capex, a smaller swing in the unexplained "other operating activities" line) rather than a one-line accounting quirk (see Key Financial Metrics) - if that pattern holds for another quarter or two, it would be worth a standing explanation of what changed in working-capital management, since three consecutive quarters of FCF decline before this one were never really explained either. What the Company should stop doing is running two separate shareholder-facing capital programs - the up-to-5-billion-share rights issue mandate and the Rp1,500,000 million buyback authorization - past their own stated deadlines with zero disclosure of what happened to either one. The buyback's silence now covers a full quarter past deadline (Q2 2026) with no new purchases and no closing statement (see Beyond the Usual); a single sentence in each filing - completed, lapsed, or extended - would cost nothing and would stop this from reading as neglect on a matter the Company itself chose to make public in the first place.
Key Financial Metrics
Rp trillion; margin is operating income as a percent of net revenue, per quarter. Values are standalone quarters; 9 derived from annual, half-year or nine-month figures (Q3 2023, Q4 2023, Q2 2024, Q3 2024, Q4 2024, Q2 2025, Q3 2025, Q4 2025, Q2 2026).
H1 2026 vs. H1 2025 (P&L and cash flow), June 2026 vs. December 2025 (balance sheet) - consolidated, unaudited
FX: IDR 17,856 = USD 1 (the exchange rate at the reporting date, implied by the filing's own monetary-assets-in-foreign-currency note: Rp69,145 million of US-dollar cash against US$3,872,355).
| Metric | H1 2026 (IDR) | H1 2026 (USD) | H1 2025 (IDR) | YoY |
|---|---|---|---|---|
| Net Revenue | Rp67,955,648M | ~$3,805.6M | Rp63,812,732M | +6.49% |
| Gross Profit | Rp15,151,939M | ~$848.5M | Rp13,985,443M | +8.34% margin 22.30% vs 21.92% |
| Income from Operations ("Operating Income") | Rp2,679,602M | ~$150.0M | Rp2,366,206M | +13.25% margin 3.94% vs 3.71% |
| Income Before Final Tax and Corporate Income Tax | Rp2,672,033M | ~$149.6M | Rp2,392,074M | +11.70% |
| Income for the Year (total, incl. non-controlling interests) | Rp2,131,951M | ~$119.4M | Rp1,956,129M | +8.99% |
| Net Income (attributable to owners) | Rp2,025,119M | ~$113.4M | Rp1,883,809M | +7.50% margin 2.98% vs 2.95% |
| EPS | Rp49.23 | ~$0.0028 | Rp45.37 | +8.51% |
| EBITDA» (Operating Income + D&A) | Rp5,041,226M | ~$282.3M | Rp4,564,651M | +10.44% margin 7.42% vs 7.15% |
| Free Cash Flow» | +Rp3,482,574M | ~$195.0M | +Rp2,859,281M | +21.80% |
"Adjusted EBITDA»" is still not a metric Alfamart reports; the EBITDA line above is Income from Operations plus depreciation and amortization (Rp1,033,919 million of fixed-asset depreciation plus Rp1,327,705 million of right-of-use-asset depreciation, Rp2,361,624 million combined, per the segment note - versus Rp2,198,445 million in H1 2025). Free cash flow (net cash from operating activities minus capex - "acquisition of fixed assets" only) rose 21.80% to +Rp3,482,574 million, discussed above.
| Balance sheet metric | Jun 2026 (IDR) | Jun 2026 (USD) | Dec 2025 (IDR) | Change |
|---|---|---|---|---|
| Total Assets | Rp42,788,957M | ~$2,395.9M | Rp42,579,101M | +0.49% |
| Total Liabilities | Rp23,630,784M | ~$1,323.3M | Rp23,196,204M | +1.87% |
| Total Equity (attributable to owners) | Rp17,800,758M | ~$996.8M | Rp18,021,330M | -1.22% |
| Total Cash (cash and cash equivalents) | Rp4,097,782M | ~$229.5M | Rp4,679,823M | -12.44% |
Debt-to-Equity Ratio (DER)» (interest-bearing debt - short and long-term bank loans, excluding the right-of-use lease liability, over total equity including non-controlling interests): ~0.0391x at June 30, 2026, essentially flat against ~0.0393x at FY2025. Total interest-bearing bank debt fell slightly to Rp749,824 million (from Rp761,223 million), the Bank Mandiri Term Loan II drawn in December 2025 now amortizing on schedule with no new borrowing added this quarter.
Where Q2 2026's Revenue Went
Net revenue, and how much of it was left as operating profit and net income, in one view. Figures are the same standalone-quarter figures as the metrics table.
Rp billion, Q2 2026. Percentages are of net sales. Standalone quarter; derived from an annual, half-year or nine-month row in the filings.
Key Operational Metrics
Network growth
- Store network (Group-wide, all retail formats including subsidiaries): 24,830 retail stores as of the presentation's reference date, up 396 net new stores since December 31, 2025, per the company's own presentation.
- Store network (Alfamart brand only, per NielsenIQ modern-trade tracking in the presentation): 21,442 stores YTD June 2026, up from 21,120 YTD June 2025.
- Headcount: 98,691 permanent employees at June 30, 2026, up 0.18% from 98,515 at December 31, 2025.
Market position
- Market share (NielsenIQ, per company presentation): Alfamart's share of total Indonesia grocery rose to 14.2% (YTD June 2026), from 13.6% a year earlier (YTD June 2025) - a genuine like-for-like share gain, extending Q1 2026's 14.4%/13.3% reading on the same basis. Combined with Alfamidi, the group's share of total Indonesia grocery rose to 16.8%, from 15.1%.
- Store network geography (Group): the presentation's own store-mix trend shows Outside Java's share of the total network rising to 37.3% (YTD June 2026), from 36.6% at FY2025, while Greater Jakarta's share fell to 23.5%, from 24.0% - consistent with Outside Java's continued outperformance in revenue growth below.
Segment Performance
Alfamart reports the same three geographic segments as every prior post - Jabodetabek (greater Jakarta), Java excluding Jabodetabek, and Outside Java. The figures below are the six-month period as directly reported, not a derived standalone quarter.
| Segment | H1 2026 Revenue | H1 2025 Revenue | YoY | H1 2026 Income | H1 2025 Income | YoY | Margin |
|---|---|---|---|---|---|---|---|
| Jabodetabek | Rp16,960,434M | Rp16,734,081M | +1.35% | Rp542,734M | Rp448,581M | +21.00% | 3.20% vs 2.68% |
| Java (excl. Jabodetabek) | Rp23,843,488M | Rp23,018,418M | +3.58% | Rp1,488,812M | Rp1,386,246M | +7.40% | 6.24% vs 6.02% |
| Outside Java | Rp27,151,726M | Rp24,060,239M | +12.85% | Rp1,715,665M | Rp1,510,752M | +13.56% | 6.32% vs 6.28% |
All three regions grew both revenue and segment income this half, the same pattern Q1 2026 showed on a standalone-quarter basis. Outside Java remains the fastest-growing region by revenue (+12.85%), continuing its long-running role as the group's growth-engine segment, and this time it didn't lose margin doing it - unlike Q1 2026's standalone quarter, where Outside Java was the one segment to lose margin (5.91%, from 6.22%), the cumulative H1 figure shows Outside Java's margin essentially flat and slightly up (6.32%, from 6.28%). Jabodetabek posted the sharpest income growth of any segment (+21.00%) on its slowest revenue growth (+1.35%) - the capital region's margin recovery that Q1 2026 first flagged (3.60%, from 3.40%, standalone) held up over the full half (3.20%, from 2.68%), a genuinely different trajectory than the multi-quarter Jabodetabek weakness since Q1 2024.
Segments Compared
Combined segment income across all three regions grew 12.00% (Rp3,345,579 million to Rp3,747,211 million) while unallocated overhead grew a slower 9.01% (Rp979,373 million to Rp1,067,609 million) - overhead is growing again this half, unlike Q1 2026's standalone-quarter decline, but it's still growing slower than the segment business sitting beneath it, extending rather than reversing the improvement Q1 first showed. Operating income grew 13.25% (Rp2,366,206 million to Rp2,679,602 million), modestly ahead of combined segment income's 12.00% growth, because unallocated other expense also swung favorably (a Rp7,569 million net expense this half, versus a Rp25,868 million net gain a year earlier being offset within income before tax rather than at the operating-income line - see the income statement). Whether the underlying overhead-discipline shift Q1 2026 flagged is durable or a one-quarter anomaly remains the open question The Prescription above raises again.
Beyond the Usual
The Bank Aladin stake's paper loss more than tripled to its deepest level
The Company's Rp500,000 million investment in listed digital bank PT Bank Aladin Syariah Tbk was carried at Rp73,530 million at June 30, 2026 - an accumulated unrealized fair-value loss of Rp426,470 million, or 85.29% of cost. That's a sharp reversal from Q1 2026's 24.71% period-end reading and far worse than FY2025's 44.12% - the deepest period-end loss in the series, which runs from December 2022's 16.76% (the stake was bought in June 2022 and flagged at H1 2022); the previous deepest was 52.65%. The filing's near-completion-date reading, using a market price of Rp620 per share, implies a carrying value of Rp182,353 million - a 63.53% loss from cost, identical to the near-authorization mark Q1 2026 disclosed three months earlier, meaning the period-end mark moved further than the near-completion mark this time, the opposite of Q1's pattern.
This swing (a period-end loss deepening from 24.71% to 85.29% of cost in one quarter, on a stake that's already been marked down for over three years) is worth watching purely as a volatility signal on a small, illiquid minority holding - not something the Company controls or is obligated to explain further, since both measurement points are disclosed transparently in the same footnote each quarter.
The buyback program bought zero shares this quarter and still hasn't disclosed its status
Cumulative treasury share purchases stood at 432,669,000 shares (Rp812,464 million) at both March 31, 2026 and June 30, 2026 - the Company made no additional purchases under its Rp1,500,000 million / up-to-650,000,000-share authorization during Q2 2026. That authorization was explicitly bounded "gradually until March 6, 2026," a deadline Q1 2026 already flagged as passed with no disclosure. This filing, authorized for issue July 29, 2026 - now nearly five months past the program's own stated end date - still contains no statement that the program completed, lapsed, or was extended.
The zero-purchases-this-quarter detail actually narrows the interpretation: since no shares have been bought since Q1, the program has functionally stopped, which reads more like a lapsed authorization than an active one still running informally past its deadline. But "reads like" isn't the same as the Company saying so - a single sentence confirming the program's actual status would resolve an ambiguity that's now been open for two consecutive filings.
The rights issue mandate remains unaddressed for a twenty-second consecutive filing
Shareholders approved the up-to-5-billion-share Capital Increase with Pre-emptive Rights (HMETD) at the May 6, 2021 Extraordinary General Meeting - a mandate also covered in [Q1 2026](/analysis/amrt/2026-03/#beyond-the-usual). This filing was authorized for issue on July 29, 2026 - roughly 1,545 days (about 50.8 months) past the mandate's own May 6, 2022 regulatory deadline under OJK Regulation No. 32/POJK.04/2015 - and contains **no reference anywhere** to the rights issue having lapsed, been extended, been formally cancelled, or been replaced by a fresh shareholder approval.
Related-party purchases hit a new high as a share of total net purchases
Net purchases from related parties reached Rp1,015,606 million, or 1.91% of total net purchases, for H1 2026 - up from Rp899,718 million (1.81%) a year earlier, extending the trend since Q1 2025's then-record 1.53%.
The related-party lease to PIM fell sharply after Q1's own reversal
The related-party lease liability to PT Perkasa Internusa Mandiri ("PIM"), an entity under common control, fell to Rp50,211 million at June 30, 2026, from Rp98,576 million at December 31, 2025 - a 49.06% decline that extends Q1 2026's 35.92% drop rather than reversing it. The related-party rent deposit held with PIM also fell, to Rp7,767 million (from Rp9,044 million at FY2025) - a reversal of FY2025's tripling, though as with every prior quarter no note explains what's driving either line.
A three-year-old Lawson warrant arrangement tied to a potential IPO was terminated over a year before this filing disclosed it
A footnote on the Company's significant agreements discloses that a side-letter arrangement with Lawson Inc. Japan and Mitsubishi Corporation - originally flagged in 9M 2023 as giving Lawson Inc. Japan a warrant for up to 6% of subsidiary LWS shares if and when LWS completed an IPO - was terminated on May 16, 2025. The termination itself predates this filing by over a year and doesn't appear to have been disclosed in any prior quarterly filing; it surfaces here only because this note happens to restate the full history of the arrangement. No reason for the termination is given.
Coverage Table
| Metric | H1 2026 | H1 2025 | YoY | Why it matters |
|---|---|---|---|---|
| Net Revenue | Rp67,955,648M | Rp63,812,732M | +6.5% | Growth held up, though slightly slower than Q1 2026's pace |
| Free cash flow | +Rp3,482,574M | +Rp2,859,281M | +21.8% | First YoY FCF increase since H1 2025 |
| Bank Aladin stake (period-end mark) | 85.29% loss | 51.18% loss | much worse | Stake marked down sharply |
| Buyback purchases this quarter | Zero | n/a | New | Program appears functionally lapsed, undisclosed |
| Rights issue disclosure | Zero mentions | Zero mentions | unchanged | Twenty-second consecutive silent filing |
| Share price (period-end) | Rp1,370 | Rp2,390 | -42.7% | See Target Valuation Range |
Target Valuation Range
Verdict: cheaper than its own prior quarter on every multiple shown, with no listed peer to compare against. Enterprise value is ~Rp52.95 trillion (~$2.97B), or 5.55x EV/EBITDA and ~15.85x trailing P/E (from ~5.94x and ~17.32x at Q1 2026), despite growing trailing earnings. The share price partially recovered within the quarter but still closed well below where it started the half.
Alfamart's shares closed at Rp1,370 on June 30, 2026 - down 30.63% from the Rp1,975 close at FY2025 and down 7.43% from Q1 2026's Rp1,480, though up 19.13% from May 2026's Rp1,150 (see The Stock Hit a New Two-Year Low, Then Partly Recovered below). No stock split falls within the two-year price window used here (the last was the 10-for-1 split in July 2013), so no price adjustment is needed. The outstanding share count of 41,091,832,700 is unchanged from Q1 2026, since the buyback program bought zero additional shares this quarter (see Beyond the Usual).
| Market cap → enterprise value | H1 2026 |
|---|---|
| Share price (period-end) | Rp1,370 |
| Shares outstanding | 41,091,832,700 |
| Market capitalization | Rp56.30 trillion (~$3.15B) |
| Plus: interest-bearing debt | Rp749,824 million |
| Less: cash and equivalents | Rp4.10 trillion |
| Enterprise value | Rp52.95 trillion (~$2.97B) |
| Peer-multiple sanity check | Q1 2026 | H1 2026 | Change |
|---|---|---|---|
| Trailing P/E | ~17.32x | ~15.85x | down |
| EV/EBITDA | ~5.94x | ~5.55x | down |
| P/B | ~3.29x | ~3.16x | down |
Enterprise value here does not add non-controlling interests (Rp1.36 trillion at June 30, 2026), although EBITDA is consolidated; adding them would put EV/EBITDA at about 5.69x instead of 5.55x.
Market cap fell to Rp56.30 trillion (~$3.15B), down from Rp60.82 trillion (~$3.58B) at Q1 2026, tracking the share-price decline directly since the outstanding share count didn't move this quarter. Trailing P/E (using trailing-twelve-month net income to owners of Rp3,552,199 million: FY2025's Rp3,410,889 million, less H1 2025's Rp1,883,809 million, plus this half's Rp2,025,119 million) compressed further even as trailing earnings grew, meaning the entire multiple compression again came from the falling price rather than weaker fundamentals. EV/EBITDA (against trailing-twelve-month EBITDA of Rp9,540,234 million) and P/B (book value of Rp17,800,758 million equity attributable to owners ÷ 41.09 billion outstanding shares) both moved the same way.
No listed domestic peer still exists for a direct minimarket-format comparison - Indomaret remains privately held under the Salim Group.
The Stock Hit a New Two-Year Low, Then Partly Recovered
The share price moved within a Rp1,150-Rp3,320 range across the trailing two years to this quarter-end (based on month-end closes) - a 65.36% peak-to-trough swing, well past Q1 2026's 55.42%. The low itself came mid-quarter: the price fell every month from January 2026 through May 2026 (Rp1,745, Rp1,670, Rp1,480, Rp1,320, Rp1,150), a five-month uninterrupted decline from December's Rp1,975, before rebounding 19.13% in June alone to close the half at Rp1,370. Nothing in this filing or the accompanying presentation points to a company-specific reason for either the May low or the June rebound - revenue, free cash flow, and net income all grew this half, and market share gained further. The stock is still pricing in more caution than the fundamentals shown here would suggest, even after the partial recovery.
PT Sumber Alfaria Trijaya Tbk's unaudited interim consolidated financial statements as of June 30, 2026 and for the six months then ended, and the accompanying investor presentation for the same period.