DMart parent Avenue Supermarts reports 8.5% rise in Q2 net profit to ₹743 crore

Avenue Supermarts, the parent company of retail chain DMart, posted an 8.5 per cent increase in consolidated net profit to ₹743 crore for the quarter ended 30 September 2026, up from ₹685 crore in the same period last year.

Total revenue for the second quarter rose nearly 18 per cent to ₹19,644 crore, compared to ₹16,676 crore a year earlier. The top-line growth was supported by steady consumer demand and expansion across its store network.

Revenue jumps as store footprint reaches 518

DMart added 15 new stores during the September quarter, bringing its total location count to 518. That brings its total new store additions for the first half of the financial year to 18.

Sales at stores open for two years or longer grew 9.5 per cent during the quarter, accelerating from the 6.8 per cent growth recorded in the second quarter of the previous financial year.

On a standalone basis, which reflects the core physical supermarket operations, revenue rose 18.4 per cent to ₹19,206 crore, while net profit grew 7.6 per cent to ₹804 crore.

Operating margins narrow under wage pressures

Despite steady top-line growth, profitability margins narrowed across the business. Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 14.7 per cent to ₹1,393 crore, but the EBITDA margin contracted by 20 basis points to 7.1 per cent from 7.3 per cent a year ago.

The net profit margin also dipped to 3.8 per cent from 4.1 per cent.

Anshul Asawa, Managing Director and Chief Executive Officer of Avenue Supermarts, said the business maintained its low-price proposition in an inflationary environment, though wage costs had risen. Entry-level wage inflation led to a marginal increase in operating expenses during the period.

For the first six months of the financial year, Avenue Supermarts reported a consolidated net profit of ₹1,603 crore, up nearly 10 per cent from ₹1,458 crore in the corresponding period last year. First-half revenue rose 16.4 per cent to ₹38,439 crore.

E-commerce focus and stock performance

In the company's online division, DMart Ready, efforts remain focused on tightening delivery operations and customer service. Vikram Dasu, CEO of Avenue E-Commerce, said the unit is concentrating on driving greater operational efficiencies across the cities where it currently operates.

Investor Radhakishan Damani and his family hold a 67 per cent stake in Avenue Supermarts. Shares of the company closed down 1.9 per cent at ₹3,516.80 on Saturday, having dropped more than 18 per cent over the past year.