DMart Q1 profit rises 11 per cent as revenue tops Rs 18,794 crore

MUMBAI: The checkout counters are still ringing, but the pace at some aisles has begun to slow. Avenue Supermarts, the operator of DMart, delivered another quarter of double-digit growth, although softer performance at its mature stores and continued losses in its online grocery business hinted at a more measured growth trajectory.

On a consolidated basis, the retailer reported a net profit of Rs 860.44 crore for the quarter ended June 30, 2026, up 11.3 per cent from Rs 772.81 crore a year earlier. Revenue from operations rose 15 per cent year-on-year to Rs 18,794.53 crore, compared with Rs 16,359.70 crore in the corresponding quarter last year.

The standalone business also maintained momentum. Net profit increased 12.8 per cent to Rs 935.77 crore, while revenue climbed 15.1 per cent to Rs 18,343.49 crore from Rs 15,932.12 crore a year ago. Revenue also improved sequentially from Rs 17,204.50 crore reported in the March quarter.

The bigger story, however, lay inside the stores.

Avenue Supermarts managing director and CEO Anshul Asawa said outlets that have been operational for more than two years recorded 5.5 per cent like-for-like growth, down from 7.1 per cent in the same quarter last year and 10.8 per cent in the March quarter. He attributed the moderation largely to older stores in major metropolitan markets, which remained broadly flat despite generating significantly higher revenue per square foot, while stores in non-metro markets continued to deliver healthy growth.

DMart continued expanding its physical footprint, opening three new stores during the quarter to take its network to 503 outlets. The company said it remains committed to its cluster-based expansion strategy.

Across categories, Foods remained the largest revenue contributor, although its share edged down to 54.93 per cent from 55.60 per cent a year earlier. Non-Foods (FMCG) remained broadly stable at 19.60 per cent, while General Merchandise & Apparel increased its contribution to 25.47 per cent, up from 24.73 per cent.

The retailer also reported a slight decline in annualised sales productivity, with revenue per retail business area easing to Rs 8,571 per sq. ft. from Rs 8,779 per sq. ft. in the corresponding quarter last year.

Meanwhile, online grocery arm DMart Ready, operated by subsidiary Avenue E-Commerce Ltd, remained in the red. The business reported a comprehensive loss of Rs 91.39 crore during the quarter.

Whole-time Director and CEO Vikram Dasu said the company has sharpened its focus on large metropolitan markets and discontinued operations in seven cities that contributed only marginally to the business. Following the rationalisation, DMart Ready now operates in 11 cities.

The quarter suggests that while DMart’s value-led retail model continues to attract shoppers and fuel revenue growth, the company is increasingly balancing aggressive expansion with the realities of a maturing store network and a still-evolving online grocery business.