Key Highlights

  • Profit: Net profit was ₹742.98 crore, down 13.6% from the June quarter but up 8.5% from a year ago.
  • Revenue: ₹19,644 crore, up 4.5% quarter-on-quarter and 17.8% year-on-year.
  • Costs: Total expenses rose 18.29% year-on-year, slightly faster than revenue.
  • Expansion: 15 new stores opened, taking the total to 518.
  • Stock: Shares closed at ₹3,520 on Friday, down about 18% over the past year.

Avenue Supermarts, which runs the DMart chain, reported a consolidated net profit of ₹742.98 crore for the September quarter (Q2 FY27). That is 13.6% lower than the previous quarter but 8.5% higher than the same quarter last year.

Metric Q2 FY27 Q1 FY27 Q2 FY26
Revenue from operations ₹19,644 cr ₹18,794.53 cr ₹16,676.30 cr
Net profit ₹742.98 cr ~₹860 cr* ₹684.85 cr
Profit before tax ₹1,024.84 cr ₹1,183.14 cr ₹944.79 cr
Net margin* ~3.8% ~4.6% ~4.1%

Calculated from reported figures.

Why It Matters: Growing Fast, Earning Less on Each Rupee

DMart’s sales growth remains strong, up nearly 18% from a year ago, as it keeps opening stores. But profit grew less than half as fast, at 8.5%. The reason shows up in costs: total expenses rose 18.29% year-on-year, slightly faster than revenue.

As a result, DMart’s net margin, the profit it keeps from every ₹100 of sales, slipped to about ₹3.8, from about ₹4.1 a year ago and ₹4.6 in the June quarter. For a value retailer that competes on low prices, even small margin shifts matter. Rising competition, including from quick-commerce apps, and the cost of new stores are likely pressures.

Store Expansion Continues

DMart opened 15 new stores in the quarter, taking its total to 518. New stores add to revenue but often take time to become fully profitable, which can weigh on margins in the short term.

Half-Year Picture

For April–September, net profit rose to ₹1,603.42 crore from ₹1,457.66 crore, and revenue to ₹38,438.54 crore from ₹33,036 crore.

Stock Performance

Period Change
1 month −5.63%
3 months −13.71%
6 months −20.28%
1 year −18.27%

The shares ended at ₹3,520 on Friday, before the results. Investors will watch whether the margin squeeze continues into the festive quarter.

The Bottom Line

DMart is still growing its sales and stores at a strong pace. The question now is whether it can protect profitability as competition and expansion costs rise.

With inputs from IANS.