DMart Q2 revenue rises 17.8 per cent as profit growth trails

MUMBAI: DMart’s shopping cart is getting fuller, but its profit gains are moving at a slower pace. Avenue Supermarts, which operates the supermarket chain, reported an 17.8 per cent year-on-year rise in consolidated revenue from operations to Rs 19,644 crore in the second quarter of FY27, while net profit grew 8.5 per cent to Rs 743 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 14.8 per cent to Rs 1,393 crore. However, the faster rise in revenue than profit came alongside a moderation in margins, with the consolidated EBITDA margin slipping to 7.1 per cent from 7.3 per cent a year earlier. The net profit margin also narrowed to 3.8 per cent from 4.1 per cent.

For the six months ended 30 September 2026, consolidated revenue from operations rose 16.4 per cent to Rs 38,439 crore, while net profit increased 10 per cent to Rs 1,603 crore.

Avenue Supermarts managing director and CEO Anshul Asawa said revenue grew 18.4 per cent year on year in Q2 FY27, while profit after tax increased 7.6 per cent. The figures differ from the consolidated growth rates reported above.

Asawa added that DMart stores operational for two years or more recorded revenue growth of 9.5 per cent in the quarter, up from 6.8 per cent in Q2 FY26. He attributed a marginal increase in operating expenses to entry-level wage inflation, while reiterating the retailer’s focus on offering value to customers in an inflationary environment.

DMart added 15 stores during the September quarter, taking its total network to 518 as of 30 September 2026. It opened 18 stores in the first half of FY27, reflecting its continued physical expansion.

Customer transactions also rose, with the company recording 11.1 crore bills in Q2 FY27 compared with 9.7 crore in the year-ago quarter. Revenue growth at stores operational for at least 24 months reached 9.5 per cent, suggesting that growth is not being driven by new outlets alone.

The retailer continues to follow its everyday-low-cost, everyday-low-price (EDLC-EDLP) strategy. The model centres on competitive procurement and operational and distribution efficiencies, allowing DMart to offer products at competitive prices.

Meanwhile, the company’s online grocery business, DMart Ready, was operating in 11 cities in the first half of FY27, compared with 19 cities in the corresponding period a year earlier, according to Avenue Supermarts’ investor presentation.

Vikram Dasu, whole-time director and CEO of Avenue E-Commerce Limited, said the business was concentrating on improving operational efficiency and strengthening the customer experience in the cities where it currently operates.

The latest results point to a retailer still adding stores and attracting more transactions, even as margins face pressure. For DMart, the challenge is to keep its low-price promise and revenue momentum intact without letting costs eat too deeply into profits.