Festive demand spurs DMart topline 16%, but margins face pressure

Avenue Supermarkets , which operates the retail chain of value stores under DMart, saw Q2 consolidated revenues rising 15.44% YoY to around ₹16,676 crore over ₹14,445 crore a year ago, aided by festive season demand and store expansion. Though, sequentially, topline grew 2% over the April–June quarter revenue of ₹16,360 crore.

Though operating profit (EBITDA) increased 11% YoY, reaching ₹1,214 crore versus about ₹1,094 crore last year, margins narrowed to 7.3% from 7.6% a year ago owing to cost pressure and store expansion. The company added eight new quarters during the quarter taking the total store count to 432. In the first half of the year, 55 new outlets have been added, with Maharashtra still the core base with 120 stores, followed by Gujarat (68), Telangana (45), and Karnataka (41).

“Our revenue in Q2 FY26 grew by 15.4% over the previous year. Profit after tax (PAT) grew by 5.1% over the previous year. Two years and older DMart stores grew by 6.8% during Q2 FY26 as compared to Q2 FY25. Following the government’s recent announcement on GST reforms, we passed on the benefit of reduced GST rates to all our customers, wherever applicable. We opened 8 new stores during the quarter. Our total stores stand at 432 as on September 30, 2025,” said Anshul Asawa, CEO-Designate, Avenue Supermarts Limited, in a statement.

DMart’s online arm, DMart Ready, continued to invest in its ecommerce infrastructure, amid some network rationalization. “We added 10 new fulfillment centers in our existing markets and continued to invest and deepen our presence in the large metro cities. We are now present across 19 cities in India,” added Vikram Dasu, Whole Time Director and CEO, Avenue E-Commerce Limited. However, it ceased operations in five cities (Amritsar, Belgavi, Bhilai, Chandigarh and Ghaziabad) during the quarter.

Total Revenue for H1FY26 stood at ₹32,151 crore, as compared to ₹27,762 crore in the same period last year. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) in H1FY26 stood at ₹2,543 crore, as compared to ₹2,326 crore during H1FY25. EBITDA margin stood at 7.9% in H1FY26 as compared to 8.4% in H1FY25. Net Profit stood at ₹1,576 crore for H1FY26, as compared to ₹1,523 crore in H1FY25. PAT margin stood at 4.9% in H1FY26 as compared to 5.5% in H1FY25.

The company's shares closed at ₹4,328 on the NSE on Friday, up 0.53% from their previous close.