DMart Q2 FY27 net profit falls 13.6% QoQ to ₹743 crore; revenue up 17.8% YoY
Synopsis
DMart's Q2 FY27 profit slipped 13.6% sequentially to ₹742.98 crore even as revenue grew 17.8% year-on-year — a sign that rising costs are eating into margins faster than top-line growth can compensate. With the stock down over 20% in six months and quick-commerce rivals gaining ground, the earnings print raises fresh questions about DMart's margin resilience.
Key Takeaways
Avenue Supermarts reported Q2 FY27 consolidated net profit of ₹742.98 crore , down 13.6% quarter-on-quarter.
Year-on-year net profit rose 8.5% from ₹684.85 crore in Q2 FY25.
Revenue from operations grew 17.8% YoY to ₹19,644 crore and 4.5% sequentially.
Total expenses jumped 18.29% YoY to ₹18,632.70 crore , squeezing margins.
DMart opened 15 new stores in Q2 FY27, taking the total to 518 .
The stock has declined 20.28% over six months and 18.27% over one year, closing at ₹3,520 on Friday.
Avenue Supermarts Ltd, the operator of the DMart retail chain, posted a 13.6% sequential decline in consolidated net profit to ₹742.98 crore for the quarter ended September 2026 (Q2 FY27), according to its exchange filing. Despite the quarter-on-quarter dip, the bottom line improved 8.5% on a year-on-year basis from ₹684.85 crore in Q2 FY25.
Revenue Performance
Consolidated revenue from operations climbed 4.5% sequentially to ₹19,644 crore in Q2 FY27, up from ₹18,794.53 crore in Q1 FY27. On a year-on-year basis, revenue surged 17.8% from ₹16,676.30 crore recorded in Q2 FY25. Total income for the quarter stood at ₹19,657.54 crore, compared with ₹18,820.31 crore in the preceding quarter and ₹16,695.87 crore in the year-ago period.
Cost Pressures and Profitability
Total expenses rose sharply — up 18.29% year-on-year to ₹18,632.70 crore from ₹15,751.08 crore, indicating that cost inflation is outpacing top-line growth. Profit before tax fell 13.4% quarter-on-quarter to ₹1,024.84 crore from ₹1,183.14 crore in Q1 FY27, though it rose 8.5% year-on-year from ₹944.79 crore. This cost-revenue divergence is a key concern for analysts tracking the company's margin trajectory.
Store Expansion
Avenue Supermarts opened 15 new stores during the quarter, taking its total store count to 518. The expansion underscores the company's continued brick-and-mortar push even as quick-commerce rivals such as Blinkit and Zepto intensify competitive pressure on urban grocery retail. Notably, DMart's store-led model — built on high-volume, low-margin operations — faces a structural test as consumers in metro markets increasingly shift to on-demand delivery platforms.
Six-Month Scorecard
For the six months ended 30 September, consolidated net profit rose to ₹1,603.42 crore from ₹1,457.66 crore in the same period a year earlier. Half-year revenue from operations reached ₹38,438.54 crore, against ₹33,036 crore in the corresponding period of FY26 — a 16.4% improvement that reflects sustained consumer demand even amid a challenging margin environment.
Stock Performance
Shares of Avenue Supermarts ended at ₹3,520 on Friday, down roughly 2% from the previous close. The stock has underperformed significantly over multiple timeframes: it has declined 5.63% in one month, 13.71% over three months, and 20.28% over six months. On a year-to-date basis, the shares are down 5.32%, while the one-year decline stands at 18.27%. Over a five-year horizon, the stock has corrected 20.15% — a stark reversal for a counter that was once among the most prized in Indian retail. With cost pressures persisting and quick-commerce competition intensifying, investors will be watching whether DMart's next quarterly print shows a margin recovery or a further squeeze.
Point of View
But the more telling number is expenses rising 18.29% year-on-year against revenue growth of 17.8% — costs are now outrunning sales, a margin inversion DMart has historically avoided through its lean operating model. The 15-store addition looks healthy on paper, but store-count growth means little if each new outlet takes longer to reach the throughput levels that make the model work. Meanwhile, the stock's 20%-plus six-month correction suggests the market has already priced in structural pressure from quick-commerce — the question is whether management will adapt its format or continue betting that physical scale alone is sufficient insulation.
NationPress
10 Oct 2026
Frequently Asked Questions
What were DMart's Q2 FY27 net profit and revenue figures?
Avenue Supermarts reported a consolidated net profit of ₹742.98 crore for Q2 FY27 (quarter ended September 2026), down 13.6% from the previous quarter but up 8.5% year-on-year. Revenue from operations rose 17.8% year-on-year to ₹19,644 crore.
Why did DMart's profit fall sequentially in Q2 FY27?
The quarter-on-quarter profit decline was driven by a sharp rise in total expenses, which increased 18.29% year-on-year to ₹18,632.70 crore, outpacing revenue growth. Profit before tax also fell 13.4% sequentially to ₹1,024.84 crore, reflecting cost pressure on margins.
How many DMart stores are operational as of Q2 FY27?
Avenue Supermarts opened 15 new stores during Q2 FY27, bringing the total store count to 518. The company has continued its physical retail expansion despite intensifying competition from quick-commerce platforms.
How has the DMart stock performed recently?
Shares of Avenue Supermarts closed at ₹3,520 on Friday, down about 2% on the day. The stock has declined 20.28% over six months, 18.27% over one year, and 20.15% over five years, reflecting sustained investor concern about margins and competitive pressures.
What were DMart's half-year earnings for FY27?
For the six months ended 30 September 2026, Avenue Supermarts posted a consolidated net profit of ₹1,603.42 crore, up from ₹1,457.66 crore in the same period last year. Half-year revenue from operations stood at ₹38,438.54 crore versus ₹33,036 crore a year earlier.
