DMart parent company reports higher Q2 net profit as revenue grows

Avenue Supermarts reported an 8.5 percent year-on-year rise in consolidated net profit to 742.98 crore rupees for the quarter ended October 2026, known as Q2FY27. Total income increased nearly 18 percent to 19,657.50 crore rupees compared to the same period last year. However, profit margins declined during the quarter because expenses grew faster than revenue.

Financial Results

Consolidated earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 14.7 percent to 1,393 crore rupees, while the EBITDA margin contracted to 7.1 percent from 7.3 percent. The consolidated profit after tax margin also dropped to 3.8 percent from 4.1 percent. On a standalone basis, net profit reached 804 crore rupees, and total revenue grew 18.4 percent to 19,206 crore rupees. For the first six months of the financial year, consolidated net profit stood at 1,603 crore rupees on a revenue of 38,439 crore rupees.

Expansion and Operations

DMart opened 15 new stores during the September quarter, bringing its total store count to 518. Anshul Asawa, managing director and chief executive officer of Avenue Supermarts, noted that stores operational for two years or longer recorded 9.5 percent growth during the quarter. Asawa explained that wage inflation at the entry level caused a marginal increase in operating expenses while the company maintained its pricing strategy. Vikram Dasu, whole-time director and CEO of Avenue E-Commerce, stated that the organization remains focused on improving operational efficiencies and customer experience.

Stock Performance

DMart shares have faced heavy pressure recently, touching a 52-week high of 4,642.00 rupees in April 2026 and a 52-week low of 3,499.90 rupees on October 9, 2026. The stock has dropped 18 percent over the past year and 20 percent over the past five years. Promoter Radhakishan Damani and his family hold a 67 percent stake in Avenue Supermarts.

Context

Retail companies often face margin pressures during periods of rising entry-level wages and broader inflation because they keep product prices low to attract everyday shoppers. Supermarket chains rely heavily on opening new stores and increasing same-store sales to drive revenue growth despite these rising operational costs.