Avenue Supermarts, the operator of DMart, reported an 8.5% year-on-year increase in consolidated net profit to ₹742.98 crore for the second quarter of financial year 2027 (Q2 FY27), while revenue from operations rose 17.8% to ₹19,644 crore. The September-quarter results, announced on October 10, 2026, show continued sales growth for the value-focused retailer, although profit growth remained slower than revenue growth.
The company reported consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately ₹1,393 crore, up 14.7% from the year-ago quarter. However, the EBITDA margin declined to around 7.1% from 7.3%, while the net profit margin fell to 3.8% from 4.1%. DMart also opened 15 stores during the quarter, taking its total store count to 518 as of September 30, 2026.
Key takeaways
- Consolidated revenue from operations increased 17.8% to ₹19,644 crore.
- Consolidated net profit rose 8.5% to ₹742.98 crore, compared with ₹684.85 crore a year earlier.
- EBITDA increased 14.7% to approximately ₹1,393 crore, slower than revenue growth.
- EBITDA margin contracted to around 7.1% from 7.3%, while net profit margin fell to 3.8% from 4.1%.
- DMart added 15 stores during Q2 FY27, taking its reported network to 518 stores.
- For the first half of FY27, consolidated revenue reached approximately ₹38,439 crore and net profit stood at about ₹1,603 crore.
DMart Q2 FY27 Results: Financial Highlights
Avenue Supermarts recorded growth across its major consolidated financial indicators, but the pace of profit expansion lagged behind the increase in revenue.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹19,644 crore | ₹16,676.30 crore | +17.8% |
| Net profit | ₹742.98 crore | ₹684.85 crore | +8.5% |
| EBITDA | Approximately ₹1,393 crore | Approximately ₹1,214 crore | +14.7% |
| EBITDA margin | Approximately 7.1% | Approximately 7.3% | Down around 0.2 percentage points |
| Net profit margin | Approximately 3.8% | Approximately 4.1% | Down around 0.3 percentage points |
| Basic earnings per share | ₹11.40 | ₹10.53 | +8.3% |
Source: Avenue Supermarts results reported by The Economic Times and other financial publications. Figures are consolidated and rounded where indicated.
The figures show that DMart continued to increase sales at a double-digit rate. However, the additional revenue did not translate into an equivalent increase in net profit. The difference between revenue growth and profit growth is important because it indicates that expenses and other costs absorbed a larger share of the incremental sales during the quarter.
The decline in margins does not necessarily indicate a deterioration in the underlying business. Retail margins can fluctuate with product mix, pricing, employee costs, store expansion, promotional activity and other operating expenses. The latest results establish that margins declined, but the headline figures alone do not quantify the contribution of every factor.
Revenue Growth Remains Strong
DMart’s consolidated revenue from operations increased to ₹19,644 crore in Q2 FY27 from ₹16,676.30 crore in Q2 FY26. The increase of nearly ₹2,968 crore reflects continued expansion in the retailer’s business.
The company operates a value-focused retail model, selling groceries, household essentials, personal-care products, apparel and other everyday merchandise. Its pricing proposition centres on offering products at competitive prices, an approach that can support customer traffic and repeat purchases.
Revenue growth can come from several sources, including additional stores, higher sales at existing locations, changes in average transaction values and product mix. DMart’s store additions contributed to the expansion of its physical network during the quarter, although the reported consolidated revenue figure does not separately quantify how much growth came from new stores versus existing outlets.
The company’s standalone revenue from operations was ₹19,206.18 crore, up 18.4% from ₹16,218.79 crore in the year-ago quarter, according to its earlier quarterly business update. Standalone and consolidated results measure different reporting scopes and should not be treated as interchangeable.
The consolidated figure is the more relevant measure when assessing the overall performance of the reported group. It includes the results covered by the consolidated financial statements, while standalone revenue reflects the parent company’s individual financial results.
Net Profit Rises 8.5% to ₹743 Crore
DMart’s consolidated net profit rose to ₹742.98 crore from ₹684.85 crore in Q2 FY26, an increase of approximately ₹58 crore.
Although the increase represents positive earnings growth, it was substantially lower than the 17.8% rise in revenue. The difference means the company retained a smaller proportion of sales as net profit than it did in the corresponding quarter last year.
The net profit margin declined to approximately 3.8% from 4.1%. In practical terms, DMart generated about ₹3.80 in net profit for every ₹100 of revenue during Q2 FY27, compared with roughly ₹4.10 a year earlier.
Retailers typically operate on relatively thin margins because they purchase inventory, manage stores, employ staff and maintain logistics networks to sell large volumes of products. Even modest changes in operating costs can therefore influence the amount of profit generated from each rupee of sales.
For investors assessing DMart, the key question is whether the company can sustain revenue growth while improving or stabilising margins. A single quarter does not establish a long-term trend, but the difference between sales and profit growth makes cost control an important indicator to monitor in subsequent results.
EBITDA Growth Trails Revenue Expansion
DMart reported consolidated EBITDA of approximately ₹1,393 crore in Q2 FY27, compared with approximately ₹1,214 crore in Q2 FY26. This represents growth of about 14.7%.
EBITDA measures earnings before interest, tax, depreciation and amortisation. It is commonly used to examine operating performance before financing costs, taxes and non-cash depreciation and amortisation charges.
The fact that EBITDA grew more slowly than revenue is consistent with the contraction in the EBITDA margin. The margin declined to approximately 7.1% from 7.3%, indicating that the company generated slightly less EBITDA for every ₹100 of sales.
This difference is worth watching because retail expansion requires spending on stores, distribution, staffing and inventory. As a company opens more outlets, the associated expenses may affect operating profitability, particularly while newer locations build up sales.
However, the available headline figures do not isolate the impact of new stores from wage inflation, merchandise costs, pricing decisions or other expenses. Those factors should not be assigned specific contributions without detailed disclosures from the company.
The broader takeaway is that DMart’s operating earnings continued to rise, but not as quickly as its revenue. Future quarters will show whether the margin pressure persists or eases as the business expands.
DMart Adds 15 Stores, Taking Total to 518
Store expansion remained another important part of DMart’s Q2 FY27 performance. The company opened 15 new stores during the quarter, taking its total network to 518 locations as of September 30, 2026.
The network includes stores across several Indian markets, including Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, the National Capital Region, Tamil Nadu, Punjab and Rajasthan.
Physical expansion gives DMart access to additional customer catchments and creates opportunities to increase sales over time. New stores can also strengthen the company’s presence in existing markets and support entry into additional locations.
However, store growth should not be assessed in isolation. Opening a store involves investment in property, fixtures, inventory, logistics and staff. The revenue contribution of a new outlet depends on its location, customer traffic, local competition and the time needed to reach a stable operating level.
The total store count also does not reveal the average sales generated by each location. For that, investors need to examine same-store sales growth, the age profile of the store network and other operating indicators.
DMart’s expansion therefore provides a useful measure of the company’s growth strategy, but its financial contribution needs to be considered alongside profitability and capital requirements.
What the Results Say About DMart’s Value-Focused Model
DMart’s business is built around offering a broad range of everyday products at competitive prices. This positioning can appeal to customers seeking to manage household spending, particularly when food, personal-care and other living costs are under pressure.
A value-focused retailer can pursue growth by increasing customer traffic, expanding its product range, improving store availability and opening locations closer to underserved markets. At the same time, maintaining competitive prices limits the scope to pass every cost increase on to consumers.
That creates a continuing balance between sales growth and profitability. If a retailer keeps prices attractive while employee, logistics or operating costs rise, margins may come under pressure unless higher volumes or productivity improvements compensate.
DMart’s Q2 results illustrate this tension: revenue grew 17.8%, while EBITDA increased 14.7% and net profit rose 8.5%. The figures are consistent with margin compression, though they do not establish a single cause.
The company’s emphasis on value pricing remains relevant to its customer proposition. The challenge is to sustain that proposition while ensuring that the economics of store operations and merchandise sales support earnings growth.
H1 FY27 Performance: Revenue Reaches ₹38,439 Crore
For the first six months of FY27, Avenue Supermarts reported consolidated revenue from operations of approximately ₹38,439 crore, up about 16.4% from ₹33,036 crore in the corresponding period of FY26.
Consolidated net profit rose to approximately ₹1,603 crore from ₹1,458 crore, an increase of around 9.9%.
| Financial metric | H1 FY27 | H1 FY26 | Year-on-year change |
|---|---|---|---|
| Consolidated revenue from operations | ₹38,439 crore | ₹33,036 crore | Approximately +16.4% |
| Consolidated net profit | ₹1,603 crore | ₹1,458 crore | Approximately +9.9% |
| Total income | ₹38,477.85 crore | Not detailed here | +16.47%, as reported |
Source: The Economic Times and Business Standard reporting on Avenue Supermarts’ H1 FY27 performance. Figures are rounded.
The first-half results show that the difference between revenue and profit growth was not limited to the September quarter. Revenue increased at a faster rate than net profit over the six-month period as well.
This does not automatically imply a structural problem. Retail performance can vary with the timing of store openings, operating costs and the mix of products sold. Nevertheless, the pattern makes margins an important metric for investors tracking the company’s next set of results.
The first-half numbers also indicate that DMart continued to expand its business at a double-digit pace. The central issue is whether earnings growth can gradually catch up with sales growth as stores mature and operational efficiency improves.
What Investors Should Watch Next
The next set of results will help establish whether Q2’s margin decline was temporary or part of a more sustained trend. Investors can monitor revenue growth, EBITDA margins, net profit margins and store additions together rather than relying on any single headline figure.
Same-store sales growth is another useful indicator because it helps separate the performance of established outlets from the effect of opening new stores. The company’s ability to generate stronger sales from existing locations can influence profitability without requiring the same level of investment as an equivalent increase achieved through new outlets.
Investors may also watch employee expenses, distribution costs and the performance of DMart Ready, the company’s online grocery business. These areas can affect the economics of a retailer that competes on price and depends on operational efficiency.
The reported figures do not, by themselves, establish whether DMart shares are attractively valued. A stock-market assessment would also require the prevailing share price, valuation multiples, cash generation, capital expenditure and expectations for future earnings.
The Bigger Picture
DMart’s Q2 FY27 performance shows that the retailer continues to grow revenue at a strong pace while adding stores across India. Its value-focused model supports a broad customer proposition, but the latest results also highlight the challenge of translating higher sales into proportionate profit growth.
Revenue rose 17.8%, compared with 14.7% growth in EBITDA and 8.5% growth in net profit. The decline in margins suggests that operating performance should be assessed not only by sales expansion but also by how efficiently the company converts that expansion into earnings.
Looking Ahead
DMart’s next quarterly results will help determine whether the margin pressure seen in Q2 FY27 continues. The key indicators will include sales growth, same-store sales performance, EBITDA and net profit margins, new-store productivity and the pace of expansion. Any improvement in profitability will need to be assessed alongside the company’s continued emphasis on competitive pricing.
For now, Avenue Supermarts has delivered double-digit revenue growth and a higher net profit, while its operating margins have narrowed. The combination makes the September-quarter results a reminder that retail growth depends on both expanding sales and managing the costs associated with serving more customers and operating a larger store network.
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