DMart Reports Strong Q2 Results: Consistent Profit Surges Nearly 9% YoY to Rs 743 Crore, Revenue Soars 18%
Avenue Supermarts, the operator of DMart, has reported a solid performance for Q2 FY27, showing an 8.5% year-on-year increase in consolidated net profit to Rs 743 crore, up from Rs 685 crore in the same quarter last year. Total consolidated revenue for the quarter surged by 17.8% to Rs 19,644 crore, a significant increase from Rs 16,676 crore in Q2 FY26. While the EBITDA also saw a healthy growth of 14.7% YoY to Rs 1,393 crore, this performance came with a slight decline in the EBITDA margin, which slipped to 7.1% from 7.3%. This reduction in margins highlights the increasing operational costs faced by the company, primarily due to inflationary pressures and wage increases at the entry-level, as noted by management.
For the first half of FY27, Avenue Supermarts demonstrated consistent growth with a reported net profit of Rs 1,603 crore, a rise of 9.9% YoY, along with total revenue increasing by 16.4% to Rs 38,439 crore. The company’s EBITDA also rose by 15.1% to Rs 2,892 crore, although the EBITDA margin contracted slightly to 7.5% from the previous year. These metrics underscore the company’s robust operational performance, despite slight margin pressures, while basic earnings per share improved by 9.8% to Rs 24.60.
Management has reiterated its commitment to providing value in a competitive market while facing the challenges of inflation. The operational focus on improving efficiency and customer experience within its e-commerce segment, DMart Ready, aligns well with evolving consumer preferences. Additionally, the company has continued to expand its presence by opening 15 new stores, bringing the total to 518, indicating a proactive approach to market growth. However, despite these positive developments, the company’s share price has declined by approximately 5.36% year-to-date and by 18.31% over the past year, indicating market concerns potentially related to overall investor sentiment and sector performance.
• WEALTHOVA INSIGHTS
Investors should closely monitor Avenue Supermarts for both growth potential and margin pressures as the company navigates inflationary challenges. The steady profit growth and store expansion are encouraging, yet the stock’s year-to-date performance suggests caution may be warranted in the current market sentiment.
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Source: The Economic Times
(Expert Note: This intelligence brief was structured and verified by the Wealthova editorial desk.)