Avenue Supermarts, the retail enterprise founded by investor Radhakishan Damani and operator of the DMart chain, recorded an 8.5 percent year-on-year growth in consolidated net profit for the second quarter of FY27. Profit after tax reached Rs 743 crore for the three months ended September 30, 2026, compared to Rs 685 crore during the corresponding period of the previous fiscal year. Consolidated total revenue for the quarter advanced 17.8 percent to Rs 19,644 crore from Rs 16,676 crore.
The retailer's operating performance showed earnings before interest, tax, depreciation, and amortisation climbing 14.7 percent year-on-year to Rs 1,393 crore, up from Rs 1,214 crore in the second quarter of FY26. However, profitability metrics experienced mild compression across the board. The operating EBITDA margin shrank by 0.2 percentage points to 7.1 percent from 7.3 percent, while the profit after tax margin fell by 0.3 percentage points to 3.8 percent from 4.1 percent. Basic earnings per share rose 8.3 percent to Rs 11.40 from Rs 10.53.
Cumulative results for the first half of FY27 followed an identical pattern of top-line expansion coupled with minor margin pressure. Consolidated net profit for the six-month period grew 9.9 percent to Rs 1,603 crore against Rs 1,458 crore a year earlier. Total half-year revenue gained 16.4 percent to touch Rs 38,439 crore compared with Rs 33,036 crore, while EBITDA rose 15.1 percent to Rs 2,892 crore. The half-year EBITDA margin dipped by 0.1 percentage points to 7.5 percent, and the net margin softened from 4.4 percent to 4.2 percent. Basic earnings per share for the first half climbed to Rs 24.60.
Executive leadership attributed the margin contraction to rising personnel costs. Anshul Asawa, Managing Director and Chief Executive Officer of Avenue Supermarts, highlighted that entry-level wage inflation contributed to a slight increase in operating expenses. Asawa noted that the retail chain remained dedicated to preserving its value pricing structure for consumers in the face of ongoing inflationary pressures across the broader economic environment.
The corporate physical footprint expanded during the quarter with the addition of 15 new DMart stores, lifting the aggregate network to 518 operational outlets. Alongside brick-and-mortar operations, Vikram Dasu, Whole Time Director and Chief Executive Officer of Avenue E-Commerce Ltd, reported that DMart Ready is directing its organisational resources toward boosting operational efficiencies and elevating consumer service across existing urban coverage zones.
Following the disclosure, shares of Avenue Supermarts fell 1.90 percent on the National Stock Exchange to settle at Rs 3,516.80, down from the prior close of Rs 3,585, moving between intraday extremes of Rs 3,497.70 and Rs 3,603.90. The closing valuation placed the firm's total market capitalisation at Rs 2,29,381.87 crore. The stock has dropped 5.36 percent year-to-date in 2026 and recorded a 18.31 percent drop over the preceding twelve-month period.
Key numbers
- Q2 FY27 net profit: Rs 743 crore
- Q2 FY27 revenue: Rs 19,644 crore
- Q2 FY27 EBITDA margin: 7.1%
- Total store count: 518
- NSE market capitalisation: Rs 2,29,381.87 crore
What a board might note
- How does the 0.2 percentage point contraction in Q2 EBITDA margin to 7.1% align with internal retail cost forecasts, given management's note on entry-level wage inflation?
- Does the addition of 15 stores during the quarter, bringing the total to 518, match planned capital deployment schedules and unit-economics targets?
- How might the 18.31% drop in share price over the past year impact the company's cost of capital and relative market positioning?
Source: Economic Times, 10 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
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