Avenue Supermarts Limited, the operator of India’s popular retail chain DMart, reported its financial results for the quarter ended September 2025 (Q2FY26) on October 11, 2025, highlighting consistent growth in both profit and revenue despite margin pressures.
Financial Highlights
During the quarter, Avenue Supermarts shares recorded a consolidated net profit of ₹685 crore, marking a 4% year-on-year (YoY) increase compared to ₹660 crore in the same period last year. The company’s revenue from operations surged 15% YoY to ₹16,676 crore, as against ₹14,444 crore in Q2FY25.
Sequentially, the profit after tax (PAT) dipped 11% compared to ₹773 crore in Q1FY26, while revenue rose marginally by 2% from ₹16,360 crore posted in the previous quarter.
On a standalone basis, DMart reported total revenue of ₹16,219 crore, up 15.4% YoY. The standalone net profit stood at ₹747 crore, reflecting a 5% YoY increase.
The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the quarter came in at ₹1,230 crore, an 11.3% YoY rise from ₹1,094 crore. However, the EBITDA margin narrowed slightly to 7.3% from 7.6% in the corresponding quarter last year, indicating cost pressures in operations.
For the first half of FY26 (H1FY26), Avenue Supermarts reported a total EBITDA of ₹2,513 crore compared to ₹2,315 crore in H1FY25. The net profit for the same period rose modestly to ₹1,458 crore from ₹1,433 crore last year, with PAT margins standing at 4.4% versus 5% previously.
Operational Update
DMart continued its expansion strategy during the quarter, adding eight new stores, taking its total store count to 432 as of September 30, 2025. This store addition aligns with the company’s steady approach towards scaling its retail footprint across India.
Margin and Profitability Insights
While Avenue Supermarts maintained double-digit revenue growth, its operating margins saw a marginal contraction. The EBITDA margin stood at 7.3% in Q2FY26 compared to 7.6% in Q2FY25, and the PAT margin declined slightly to 4.1% from 4.6% in the previous year.
The company’s basic earnings per share (EPS) for Q2FY26 was reported at ₹10.53, up from ₹10.14 in the year-ago quarter. For H1FY26, the EPS stood at ₹22.41 compared to ₹22.03 for H1FY25, reflecting steady shareholder value creation.
Market Context
Analysts noted that DMart’s revenue growth of 15.5% YoY is slightly below its three-year compounded annual growth rate (CAGR) of 15.8%. While the pace of growth has moderated, the company continues to benefit from strong consumer demand and expanding store presence.
Brokerage firms have offered mixed views on Avenue Supermarts’ near-term prospects. While some analysts cited the retailer’s pricing advantage and operational efficiency as key strengths, others pointed out challenges in sustaining same-store sales growth amid rising competition in the organised retail segment.
Conclusion
Avenue Supermarts’ Q2FY26 results underscore the company’s resilience in maintaining growth momentum despite narrowing margins. With consistent store additions, disciplined cost management, and a continued focus on providing value to customers, DMart remains a prominent player in India’s modern retail space.
The retailer’s performance reflects its steady approach to expansion while navigating evolving market dynamics and consumer behaviour. As India’s retail consumption story continues to grow, DMart’s focus on affordability and operational efficiency is likely to support its long-term growth trajectory.
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