DMart Q2 Profit Rises 8.5% to ₹743 Crore

Avenue Supermarts, which operates DMart, reported consolidated Q2 FY27 profit of ₹742.98 crore, up 8.5% year on year, as revenue rose 17.8% to ₹19,644.01 crore. Standalone revenue increased 18.4% to ₹19,206 crore, but EBITDA margin narrowed to 7.3% from 7.6%. The retailer added 15 stores, taking its network to 518, while older stores recorded stronger growth. Here are the numbers investors should watch.

Avenue Supermarts’ September-quarter results show that DMart’s sales growth accelerated, but costs grew fast enough to keep profitability under pressure. The headline profit increase was positive, yet the narrower operating margin explains why investors will look beyond the revenue number.

What Happened

In its exchange filing on October 10, 2026, Avenue Supermarts reported consolidated revenue from operations of ₹19,644.01 crore for Q2 FY27, up 17.8% from ₹16,676.30 crore a year earlier. Consolidated net profit increased 8.5% to ₹742.98 crore from ₹684.85 crore.

On a standalone basis, revenue rose 18.4% to ₹19,206.18 crore and profit after tax increased 7.6% to ₹803.60 crore. EBITDA grew 14.1% to ₹1,403 crore, while the EBITDA margin narrowed to 7.3% from 7.6%.

Consolidated revenue: ₹19,644.01 crore, up 17.8%
Consolidated net profit: ₹742.98 crore, up 8.5%
Standalone revenue: ₹19,206.18 crore, up 18.4%
Standalone EBITDA: ₹1,403 crore, up 14.1%
Store count: 518 after adding 15 stores in the quarter

Why It Matters

DMart continues to expand faster than many large-format retailers, and sales at stores at least two years old grew 9.5%, compared with 6.8% in the year-ago quarter. That suggests established outlets contributed more strongly, not just new store openings.

However, revenue growth exceeded both EBITDA and profit growth. Standalone EBITDA margin slipped 30 basis points and PAT margin fell to 4.2% from 4.6%. Management attributed part of the increase in operating costs to entry-level wage inflation, making cost control an important issue for the next few quarters.

Market Impact

There was no demonstrated post-result share-price impact because the results were released on Saturday, when Indian cash markets were closed. After DMart’s preliminary revenue update on October 5, Avenue Supermarts shares had fallen 4.07% to ₹3,657.70 on the NSE, showing that investors were already focused on margins, competition and valuation.

Industry Context

India’s grocery market is increasingly split between large value-led stores and app-based quick-commerce services. DMart has prioritised lower prices and operating discipline, while its online unit has reduced its presence to 11 cities from 24 a year earlier as losses widened. That strategy limits cash burn but keeps the margin debate central as digital rivals expand.

For a comparison with another large-format retailer’s recent growth update, read BusinessNews1’s report on Trent’s Q2 revenue and store expansion.

What To Watch Next

Whether same-store growth at outlets at least two years old remains near the 9.5% Q2 pace.
Whether wage inflation and store-opening costs continue to pressure EBITDA margin.
The pace of new store additions after the network reached 518 outlets.
Any improvement in the economics and geographic footprint of DMart Ready.
The stock’s first trading response when markets reopen.

Frequently Asked Questions

What was DMart’s consolidated profit in Q2 FY27?

Avenue Supermarts reported consolidated net profit of ₹742.98 crore for the quarter ended September 30, 2026. That was 8.5% higher than ₹684.85 crore in Q2 FY26. Standalone profit was higher at ₹803.60 crore because the consolidated figure also reflects the performance of subsidiaries, including the online business.

Why did DMart’s margin decline despite higher revenue?

Standalone revenue grew 18.4%, but EBITDA rose by a slower 14.1%, reducing the EBITDA margin to 7.3% from 7.6%. Management pointed to higher entry-level wages as one cost factor. Store expansion and competitive pricing can also raise operating expenses faster than sales, although the filing did not isolate every driver.

How many DMart stores were open at quarter-end?

Avenue Supermarts operated 518 stores as of September 30, 2026, after adding 15 during the quarter. The larger network supported revenue growth, while stores at least two years old recorded 9.5% growth. Investors will watch whether new outlets mature without causing further pressure on operating margins.

Sources

This article is for information only and is not investment advice.