Avenue Supermarts, the operator of the DMart retail chain, reported an 18.4% year-on-year rise in standalone revenue to Rs 19,206 crore for the quarter ended September 30, 2026, while profit grew at a much slower pace — a familiar split between strong sales and squeezed margins.
The numbers
Standalone net profit rose 7.6% to Rs 803.5 crore, up from Rs 746.5 crore a year earlier. On a consolidated basis — which includes the DMart Ready online grocery business — revenue grew 17.8% to Rs 19,644 crore and net profit rose 8.5% to Rs 743 crore.
Margins contracted on multiple fronts. Standalone EBITDA grew 14.1% to Rs 1,403 crore, but the EBITDA margin slipped to 7.3% from 7.6% a year ago, while the profit-after-tax margin narrowed to 4.2% from 4.6%. The company partly attributed the pressure to wage inflation at the entry level, which pushed up operating costs.
Stores and same-store sales
DMart opened 15 new stores during the quarter, taking its network to 518 stores across 18 states and union territories, with total retail business area of 21.4 million square feet. Same-store sales growth for stores two years and older accelerated to 9.5%, up from 6.8% in Q2 FY26.
For the first half of FY27, standalone revenue grew 16.8% to Rs 37,550 crore, with net profit up 10.3% at Rs 1,739 crore.
The results, announced on October 10, set up Monday's trading session as the first real test of how investors read a quarter in which the value retailer's pricing proposition held up but costs ate into the gains.
Sources:
- Avenue Supermarts (DMart) Q2 Results Highlights — The Hindu BusinessLine
- Avenue Supermarts Q2 net profit rises 8.5%, revenue up 17.8% — CNBC TV18
The numbers
Standalone net profit rose 7.6% to Rs 803.5 crore, up from Rs 746.5 crore a year earlier. On a consolidated basis — which includes the DMart Ready online grocery business — revenue grew 17.8% to Rs 19,644 crore and net profit rose 8.5% to Rs 743 crore.
Margins contracted on multiple fronts. Standalone EBITDA grew 14.1% to Rs 1,403 crore, but the EBITDA margin slipped to 7.3% from 7.6% a year ago, while the profit-after-tax margin narrowed to 4.2% from 4.6%. The company partly attributed the pressure to wage inflation at the entry level, which pushed up operating costs.
Stores and same-store sales
DMart opened 15 new stores during the quarter, taking its network to 518 stores across 18 states and union territories, with total retail business area of 21.4 million square feet. Same-store sales growth for stores two years and older accelerated to 9.5%, up from 6.8% in Q2 FY26.
For the first half of FY27, standalone revenue grew 16.8% to Rs 37,550 crore, with net profit up 10.3% at Rs 1,739 crore.
The results, announced on October 10, set up Monday's trading session as the first real test of how investors read a quarter in which the value retailer's pricing proposition held up but costs ate into the gains.
Sources:
- Avenue Supermarts (DMart) Q2 Results Highlights — The Hindu BusinessLine
- Avenue Supermarts Q2 net profit rises 8.5%, revenue up 17.8% — CNBC TV18
