Archive · 11 Oct 2026
DMart Q2 Profit Falls Sequentially as Revenue and Stores Grow
Avenue Supermarts, which runs DMart, shared its results for the quarter ending September 30, 2026.
Its sales were higher than in the previous quarter and the same quarter last year.
But its profit was lower than in the previous quarter.
The reports give slightly different figures for the quarter’s profit.
DMart had 518 stores, compared with 432 a year earlier.
Older stores saw stronger sales growth, but sales per square foot across the wider store network rose only a little.
The company said higher wages for entry-level workers contributed to increased operating costs.
The reports also said cash from operations fell and DMart Ready operated in fewer cities than a year earlier.
Avenue Supermarts reported Q2 FY27 revenue from operations of ₹19,644 crore, up 4.5% quarter on quarter and 17.8% year on year.
Sequential net profit fell about 13.7%; the reports give differing figures of ₹742.98 crore and ₹743.57 crore.
The company’s store network grew to 518 from 432 a year earlier, while annualised sales per square foot rose 0.6% to ₹8,741.
Like-for-like sales growth at stores operating for at least 24 months accelerated to 9.5%, while EBITDA margin narrowed sequentially to about 7.1%.
Avenue Supermarts cited entry-level wage inflation; the reports also noted higher inventory and debt, lower first-half operating cash flow, and a smaller DMart Ready footprint.
- Who
- Avenue Supermarts Limited, which operates DMart.
- What
- Reported Q2 FY27 results, with higher revenue but lower sequential profit, alongside store expansion and mixed productivity measures.
- When
- Quarter ended September 30, 2026; the second report was published October 11, 2026.
- Where
- India; the company filed its financial results with stock exchanges.
Company’s explanation
Reported challenges
Operating costs and margins
Company’s explanation
CEO Anshul Asawa said the company remained committed to offering value and that entry-level wage inflation had marginally increased operating expenses.
Reported challenges
The reports showed expenses rising faster than sequential revenue, with EBITDA and net profit declining quarter on quarter and margins narrowing.
Store growth and productivity
Company’s explanation
The network expanded to 518 stores, and like-for-like growth at stores at least 24 months old improved to 9.5%.
Reported challenges
Annualised sales per square foot increased only 0.6% despite a nearly 20% expansion in retail area; the reports said the productivity figures cover different store bases.
Online operations
Company’s explanation
Avenue E-Commerce CEO Vikram Dasu said DMart Ready was focused on improving operational efficiency and customer experience in its existing cities.
Reported challenges
DMart Ready’s footprint fell from 19 cities in H1 FY26 to 11 in H1 FY27.
- Revenue from operations
- ₹19,644.01 crore; up 4.5% quarter on quarter and 17.8% year on year.
- Q2 net profit
- One report gives ₹742.98 crore and another ₹743.57 crore; both describe a sequential decline of about 13.7% and year-on-year growth of 8.5%.
- Total expenses
- ₹18,632.70 crore, up 5.6% from the preceding quarter.
- Store network
- 518 stores, compared with 432 a year earlier; 15 stores were added during the quarter.
- Store productivity
- Annualised sales per square foot rose 0.6% to ₹8,741; like-for-like growth at stores at least 24 months old was 9.5%.
- Profitability
- EBITDA was ₹1,393 crore and EBITDA margin was about 7.1%, down from 8% in the June quarter.
- First-half operating cash flow
- ₹599 crore, down 57% year on year.
- Auditor review
- S R B C & Co LLP issued an unmodified limited review conclusion; three subsidiaries’ interim results were not independently reviewed and management considered them immaterial.
