DMart Share Price Falls Over 4% Despite 11% Rise in Q1 PAT; Revenue Jumps 15%

On Monday, Indian equity benchmarks traded lower, with the benchmark Nifty 50 index declining 0.39 per cent to 24,113.50. Amid the broader market weakness, Avenue Supermarts (DMart) share price opened at Rs 3,950, touched an Intraday high of Rs 4,012.80 and fell to a low of Rs 3,908, marking a decline of over 4 per cent from the previous close, before trading at Rs 4,000, down 1.99 per cent, after the company announced its consolidated financial results for the quarter ended June 30, 2026.

Avenue Supermarts Q1 FY27 Financial Performance

Avenue Supermarts, which operates the DMart retail chain, reported consolidated revenue from operations of Rs 18,794.53 crore in Q1 FY27, up 14.88 per cent from Rs 16,359.70 crore in the corresponding quarter last year. Total income increased to Rs 18,820.31 crore from Rs 16,379.13 crore.

The company's consolidated net profit after Tax rose 11.34 per cent year-on-year to Rs 860.44 crore from Rs 772.81 crore in Q1 FY26. Profit before tax increased to Rs 1,183.14 crore from Rs 1,057.47 crore, registering growth of nearly 11.89 per cent.

Expenses Rise Alongside Business Growth

Total expenses increased to Rs 17,637.17 crore in Q1 FY27 from Rs 15,321.66 crore in the year-ago quarter. Purchases of stock-in-trade rose to Rs 15,936.19 crore from Rs 13,732.15 crore, while employee benefit expenses increased to Rs 451.93 crore from Rs 346.86 crore. Other expenses also climbed to Rs 1,017.43 crore from Rs 858.82 crore.

Finance costs increased to Rs 54.28 crore from Rs 29.30 crore, while depreciation and amortisation expenses rose to Rs 287.70 crore from Rs 231.70 crore in the corresponding quarter last year.
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Operating Margin Improves, Net Margin Moderates

The consolidated operating margin improved marginally to 7.98 per cent in Q1 FY27 from 7.94 per cent in Q1 FY26. However, the net profit margin declined to 4.58 per cent from 4.72 per cent during the same period. The company's basic earnings per share increased to Rs 13.20 from Rs 11.88.

The debt-equity ratio stood at 0.11 times compared with 0.06 times in the year-ago quarter, while the current ratio was 2.03 times. Inventory turnover stood at 2.66 times compared with 2.78 times in Q1 FY26.

Board Approves Rs 1,000 Crore NCD Issuance

Along with the Quarterly Results, the Board approved the issuance of Non-convertible Debentures aggregating up to Rs 1,000 crore in one or more tranches through a private placement basis.

The Board also approved the re-appointment of Bhaskaran N as Whole-time Director, designated as Chief Operating Officer, from October 17, 2026 to May 31, 2028, subject to shareholders' approval. Lalit Ahuja has been appointed as Chief Operating Officer and Senior Management Personnel with effect from July 13, 2026.

About Avenue Supermarts

Avenue Supermarts Limited operates in the retail business through offline and online channels. The group's consolidated results include Avenue E-Commerce Limited, Align Retail Trades Private Limited, Avenue Food Plaza Private Limited, Reflect Healthcare and Retail Private Limited and Nahar Seth & Jogani Developers Private Limited.

The company is widely known for its DMart retail chain and operates in the organised retail space, offering a range of food, non-food and general merchandise products to consumers.

What are your views on Avenue Supermarts' Q1 FY27 results and the growth in consolidated revenue and profit? Share your thoughts in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.