DMart Q2 Results: Profit Rises 9% to Rs 743 Crore

Avenue Supermarts reported 17.8 per cent year-on-year growth in consolidated revenue to Rs 19,644 crore in Q2 FY27, while profit growth was moderated by higher expenses and a decline in operating margins.

Avenue Supermarts Ltd, which operates the DMart retail chain, reported an 8.5 per cent year-on-year increase in consolidated net profit to Rs 742.98 crore for the quarter ended September 30, 2026. The company had reported a consolidated net profit of Rs 684.85 crore in the corresponding quarter of FY26.

Consolidated revenue from operations increased 17.8 per cent year-on-year to Rs 19,644.01 crore from Rs 16,676.30 crore in Q2 FY26. Including other income, consolidated total income stood at Rs 19,657.54 crore, compared with Rs 16,695.87 crore in the year-ago quarter.

EBITDA Grows, But Margins Narrow

Avenue Supermarts' consolidated EBITDA increased 14.7 per cent year-on-year to Rs 1,393 crore in Q2 FY27 from Rs 1,214 crore in the same quarter last year. However, EBITDA margin declined to 7.1 per cent from 7.3 per cent.

The PAT margin also contracted to 3.8 per cent from 4.1 per cent a year earlier. Basic EPS increased to Rs 11.40 from Rs 10.53 in Q2 FY26.

The slower growth in profit compared with revenue indicates pressure on profitability during the quarter. Consolidated total expenses increased 18.29 per cent year-on-year to Rs 18,632.70 crore from Rs 15,751.08 crore.

Employee benefit expenses increased to Rs 447.14 crore, while finance costs rose to Rs 63.90 crore from Rs 34.96 crore in the year-ago period. Depreciation and amortisation expenses stood at Rs 317.75 crore, compared with Rs 253.47 crore a year earlier. Other expenses increased to Rs 1,091.83 crore from Rs 922.80 crore.

Older Stores See Faster Growth

The company's brick-and-mortar DMart business continued to record double-digit revenue growth. Anshul Asawa, Managing Director and CEO of Avenue Supermarts, said revenue from the DMart business grew 18.4 per cent year-on-year in Q2 FY27, while PAT increased 7.6 per cent.

Stores that have been operational for two years or more recorded 9.5 per cent growth during the quarter, compared with 6.8 per cent in Q2 FY26. This points to an improvement in sales growth across the company's more mature store network.

Asawa said the company remained focused on offering value to customers and maintaining its pricing proposition in an inflationary environment. He also noted that wage inflation at the entry level had resulted in a marginal increase in operating expenses.

DMart follows an everyday-low-cost and everyday-low-price strategy, based on competitive procurement and operational and distribution efficiencies.

Store Network Reaches 518

Avenue Supermarts added 15 stores during Q2 FY27, taking its total store count to 518 as of September 30, 2026. The company had added 18 stores during the first half of FY27.

The total network includes one store in Navi Mumbai that is currently closed to customers for reConstruction. The company's retail business area stood at 21.4 million square feet at the end of the quarter.

The continued store additions remain an important part of DMart's growth strategy, with the company expanding its physical retail footprint while maintaining its value-focused pricing model.

Standalone Revenue Rises 18.4 per cent

On a standalone basis, Avenue Supermarts reported total revenue of Rs 19,206 crore in Q2 FY27, up 18.4 per cent from Rs 16,219 crore in Q2 FY26.

Standalone EBITDA increased 14.1 per cent to Rs 1,403 crore from Rs 1,230 crore, while net profit rose 7.6 per cent to Rs 803.60 crore from Rs 746.55 crore. The standalone EBITDA margin declined to 7.3 per cent from 7.6 per cent, while the PAT margin fell to 4.2 per cent from 4.6 per cent.

H1 FY27 Performance

For the first half of FY27, consolidated revenue from operations increased 16.4 per cent year-on-year to Rs 38,438.54 crore from Rs 33,036 crore.

Consolidated EBITDA rose 15.1 per cent to Rs 2,892 crore from Rs 2,513 crore, while net profit increased 10 per cent to Rs 1,603.42 crore from Rs 1,457.66 crore in H1 FY26. The consolidated EBITDA margin stood at 7.5 per cent, compared with 7.6 per cent a year earlier, while the PAT margin declined to 4.2 per cent from 4.4 per cent.

Disclaimer: This article is for informational purposes only and not investment advice.