DMart Q1 Results: Cons PAT Soars 11% to Rs 860 Crore as Revenue Reaches Rs 18,795 Crore.
Avenue Supermarts, the operator of DMart, has posted robust financial results for the June quarter, showcasing an 11.3% year-on-year increase in consolidated net profit, reaching Rs 860.6 crore compared to Rs 773 crore in the prior year. This positive performance can be primarily attributed to a notable 14.9% rise in revenue from operations, which surged to Rs 18,794 crore from Rs 16,359 crore year-on-year. Furthermore, the company recorded an EBITDA growth of 15.4%, rising from Rs 1,299 crore to Rs 1,499 crore, while the EBITDA margin displayed a slight improvement, moving from 7.9% to 8%. The profit after tax (PAT) margin, however, experienced a marginal decline to 4.6%, down from 4.7% in Q1 FY26, potentially indicating a need for operational scrutiny moving forward.
The company’s expansion initiatives remain pivotal, as evidenced by the opening of three new stores, bringing the total store count to 503. However, growth in existing stores located in metropolitan areas has stagnated, highlighting a significant disparity in revenue generation compared to non-metro markets, where the company is witnessing healthy growth. This trend underscores the evolving retail landscape in India, where tier-2 and tier-3 locations are increasingly contributing to overall performance.
In the realm of e-commerce, DMart Ready is honing its operational focus, particularly in large metro cities, while shedding less-performing locations. The decision to discontinue operations in seven cities indicates a strategic shift towards optimizing efficiency and profitability within the e-commerce segment. As of June 30, 2026, DMart Ready continues to operate in 11 cities, reaffirming its commitment to refining its business model to better adapt to the changing retail environment.
Overall, Avenue Supermarts’ financial indicators reflect a solid operational foundation amid a challenging retail landscape. Investors should consider the company’s balanced approach to traditional retail and e-commerce, as well as its strategic focus on expanding in high-potential markets, which may present enhanced growth opportunities in the future.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)