Avenue Supermarts posts 8.5 percent profit rise as revenue grows in Q2

Avenue Supermarts, the company that runs DMart stores, reported an 8.5 percent rise in its consolidated net profit to reach Rs 743 crore for the second quarter of financial year 2027. Total consolidated revenue grew 17.8 percent to touch Rs 19,644 crore compared to the same period last year. According to Livemint, consolidated net profit stood at Rs 742.98 crore, while total income reached Rs 19,657.50 crore.

Earnings and Margins

Even though revenue and profit grew, profitability margins dropped during the quarter because expenses went up faster than sales. Consolidated EBITDA increased by 14.7 percent to Rs 1,393 crore, but the EBITDA margin fell to 7.1 percent from 7.3 percent. The profit after tax margin also fell from 4.1 percent down to 3.8 percent. Anshul Asawa, managing director and chief executive officer of Avenue Supermarts, stated that entry-level wage inflation pushed up operating costs.

Store Expansion

The company added 15 new stores during the September quarter, bringing its total store count to 518 as of September 30, 2026. On a standalone basis, DMart net profit grew 7.6 percent to reach Rs 804 crore, while standalone revenue climbed 18.4 percent to Rs 19,206 crore. Vikram Dasu, whole time director and CEO of Avenue E-Commerce, said the firm is focused on improving operational efficiency across the cities where it operates.

Context

DMart follows a retail model built on everyday low costs and low prices to attract budget-conscious shoppers. Rising wage costs are a common challenge for large retail chains as minimum pay standards and labor expenses rise over time.