DMart operator Avenue Supermarts reports lower QoQ profit but higher revenue in Q2 FY27

Mumbai: Avenue Supermarts Limited, which operates the DMart retail chain, reported a 13.7 per cent quarter-on-quarter (QoQ) decline in consolidated net profit to ₹742.98 crore for the quarter ended September 30, 2026 (Q2 FY27), compared with ₹860.44 crore in the preceding June quarter.Despite the decline in profitability, revenue from operations increased 4.5 per cent sequentially to ₹19,644.01 crore from ₹18,794.53 crore in Q1 FY27, according to the company's unaudited financial results filed with the stock exchanges on Saturday.Expenses Rise, Profitability DeclinesThe company's consolidated total income increased 4.4 per cent to ₹19,657.54 crore in Q2 FY27 from ₹18,820.31 crore in the previous quarter.However, total expenses rose 5.6 per cent to ₹18,632.70 crore from ₹17,637.17 crore.Profit before tax declined 13.4 per cent to ₹1,024.84 crore from ₹1,183.14 crore in Q1 FY27.Basic earnings per share (EPS) decreased to ₹11.40 from ₹13.20 in the preceding quarter.Operating And Net Profit Margins NarrowDMart's consolidated operating margin narrowed to 7.09 per cent in the September quarter from 7.98 per cent in the June quarter.Net profit margin also declined to 3.78 per cent from 4.58 per cent during the same period.Finance costs increased to ₹63.90 crore from ₹54.28 crore, while depreciation and amortisation expenses rose to ₹317.75 crore from ₹287.70 crore. DMart Offers Big Earning Opportunity, Become A Supplier Or Lease Property To Earn In LakhsOther expenses increased to ₹1,091.83 crore from ₹1,017.43 crore in the previous quarter.Year-On-Year PerformanceDespite the sequential decline, DMart's consolidated net profit increased 8.5 per cent year-on-year from ₹684.85 crore in Q2 FY26.Revenue from operations grew 17.8 per cent from ₹16,676.30 crore in the corresponding quarter last year.Half-Year Financial PerformanceFor the six months ended September 30, 2026, consolidated net profit increased 10 per cent to ₹1,603.42 crore from ₹1,457.66 crore in the corresponding period last year. Top 5 Stocks To Watch Out For October 4: Bank Of Baroda, Tata Chemicals, Dmart & Others In Focus Revenue from operations rose 16.4 per cent to ₹38,438.54 crore from ₹33,036 crore in H1 FY26.Auditor's ReviewStatutory auditor S R B C & Co LLP issued an unmodified limited review conclusion on the consolidated financial results. The auditor noted that the interim financial results of three subsidiaries were not independently reviewed, with management considering them immaterial to the group.Disclaimer: This report is based on unaudited financial results filed by the company and does not constitute investment advice.

The DMart operator's revenue from operations rose 18.4% to Rs 19,206 crore for the quarter ended on September 30, 2026, against Rs 16,219 crore in the same quarter the previous year.

The DMart operator's revenue from operations rose 18.4% to Rs 19,206 crore for the quarter ended on September 30, 2026, against Rs 16,219 crore in the same quarter the previous year.

Supermarkets major Avenue Supermarts, the operator of DMart, reported an 8.5% year-on-year (YoY) increase in consolidated net profit to Rs 743 crore for the second quarter of FY27, compared with Rs 685 crore in the year-ago period.The company, promoted by investor Radhakishan Damani, reported consolidated total revenue of Rs 19,644 crore for the quarter ended September 30, 2026, marking a 17.8% YoY increase from Rs 16,676 crore in Q2FY26.Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 14.7% YoY to Rs 1,393 crore in Q2FY27, compared with Rs 1,214 crore in the corresponding quarter last year.However, the EBITDA margin declined to 7.1% in Q2FY27 from 7.3% in Q2FY26, a contraction of 0.2 percentage points. The profit after tax (PAT) margin also fell to 3.8% from 4.1%, down 0.3 percentage points.Basic earnings per share (EPS) increased 8.3% YoY to Rs 11.40 in Q2FY27, compared with Rs 10.53 in the year-ago quarter.ALSO READ: FIIs dump Indian stocks for eight straight weeks: Is a reversal on the cards or more pain ahead?DMart H1FY27 PerformanceFor the first half of FY27, Avenue Supermarts reported consolidated net profit of Rs 1,603 crore, up 9.9% YoY from Rs 1,458 crore in H1FY26.Consolidated total revenue for the six-month period rose 16.4% YoY to Rs 38,439 crore from Rs 33,036 crore in the corresponding period last year.EBITDA increased 15.1% to Rs 2,892 crore in H1FY27, compared with Rs 2,513 crore in H1FY26.The EBITDA margin stood at 7.5% in H1FY27, down 0.1 percentage points from 7.6% in the year-ago period. The PAT margin declined to 4.2% from 4.4%, a contraction of 0.2 percentage points.Basic EPS for the first half of FY27 rose 9.8% YoY to Rs 24.60, compared with Rs 22.41 in H1FY26.Management CommentaryAnshul Asawa, Managing Director and CEO of Avenue Supermarts, said the company remained committed to offering value to customers and maintaining its pricing proposition amid inflationary pressures.“We remain committed to offering best value to our customers. Our pricing proposition thus remains strong in an inflationary environment. Wage inflation at entry-level has led to a marginal increase in operating expenses,” Asawa said.The company opened 15 new stores during the quarter, taking its total store count to 518.Commenting on the performance of DMart Ready, the company's e-commerce business, Vikram Dasu, Whole Time Director and CEO of Avenue E-Commerce Ltd, said the business was focused on improving operational efficiencies and strengthening the customer experience in the cities where it operates.“We are focused on driving greater operational efficiencies and strengthening overall customer experience in the cities that we currently operate in. Our organisational efforts are aligned in that direction,” Dasu said.DMart Share PriceShares of Avenue Supermarts closed at Rs 3,516.80 on the National Stock Exchange (NSE) on Saturday, declining 1.90% from the previous close of Rs 3,585. The stock traded in a range of Rs 3,497.70 to Rs 3,603.90 during the session.The stock has dropped 5.36% year-to-date in 2026. Over the past year, it has fallen 18.31%.At the latest closing price, Avenue Supermarts had a market capitalization of Rs 2,29,381.87 crore on the NSE.Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here

Supermarts (DMart) Q2 results LIVE updates: Follow the latest announcements and developments on the company's September quarter earnings, revenue and profit, along with updates on Premier Polyfilm, Karnika Industries and LCC Infotech.