{"id":14745,"date":"2025-10-13T17:03:08","date_gmt":"2025-10-13T11:33:08","guid":{"rendered":"https:\/\/www.torusdigital.com\/toruscope\/?p=14745"},"modified":"2025-12-05T11:38:45","modified_gmt":"2025-12-05T06:08:45","slug":"avenue-supermarts-q2-fy26-results-dmarts-profit-rises-4-yoy-revenue-up-15","status":"publish","type":"post","link":"https:\/\/www.torusdigital.com\/toruscope\/quarterly-results\/avenue-supermarts-q2-fy26-results-dmarts-profit-rises-4-yoy-revenue-up-15\/","title":{"rendered":"Avenue Supermarts Q2 FY26 Results: DMart\u2019s Profit Rises 4% YoY, Revenue Up 15%"},"content":{"rendered":"

[vc_section el_id=”blog-inner-layout”][vc_row overlay_dotted=””][vc_column el_class=”blog_primary”][vc_row_inner][vc_column_inner][vc_column_text css=””]Avenue Supermarts Limited, the operator of India\u2019s 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.<\/p>\n

<\/span>Financial Highlights<\/strong><\/span><\/h2>\n

During the quarter, Avenue Supermarts shares<\/a> recorded a consolidated net profit of \u20b9685 crore, marking a 4% year-on-year (YoY) increase compared to \u20b9660 crore in the same period last year. The company\u2019s revenue from operations surged 15% YoY to \u20b916,676 crore, as against \u20b914,444 crore in Q2FY25.<\/p>\n

Sequentially, the profit after tax (PAT) dipped 11% compared to \u20b9773 crore in Q1FY26, while revenue rose marginally by 2% from \u20b916,360 crore posted in the previous quarter.<\/p>\n

On a standalone basis, DMart reported total revenue of \u20b916,219 crore, up 15.4% YoY. The standalone net profit stood at \u20b9747 crore, reflecting a 5% YoY increase.<\/p>\n

The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the quarter came in at \u20b91,230 crore, an 11.3% YoY rise from \u20b91,094 crore. However, the EBITDA<\/a> margin narrowed slightly to 7.3% from 7.6% in the corresponding quarter last year, indicating cost pressures in operations.<\/p>\n

For the first half of FY26 (H1FY26), Avenue Supermarts reported a total EBITDA of \u20b92,513 crore compared to \u20b92,315 crore in H1FY25. The net profit for the same period rose modestly to \u20b91,458 crore from \u20b91,433 crore last year, with PAT margins standing at 4.4% versus 5% previously.<\/p>\n

<\/span>Operational Update<\/strong><\/span><\/h2>\n

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\u2019s steady approach towards scaling its retail footprint across India.<\/p>\n

<\/span>Margin and Profitability Insights<\/strong><\/span><\/h2>\n

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.<\/p>\n

The company\u2019s basic earnings per share (EPS) for Q2FY26 was reported at \u20b910.53, up from \u20b910.14 in the year-ago quarter. For H1FY26, the EPS stood at \u20b922.41 compared to \u20b922.03 for H1FY25, reflecting steady shareholder value creation.<\/p>\n

<\/span>Market Context<\/strong><\/span><\/h2>\n

Analysts noted that DMart\u2019s 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.<\/p>\n

Brokerage firms have offered mixed views on Avenue Supermarts\u2019 near-term prospects. While some analysts cited the retailer\u2019s 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.<\/p>\n

<\/span>Conclusion<\/strong><\/span><\/h2>\n

Avenue Supermarts\u2019 Q2FY26 results underscore the company\u2019s 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\u2019s modern retail space.<\/p>\n

The retailer\u2019s performance reflects its steady approach to expansion while navigating evolving market dynamics and consumer behaviour. As India\u2019s retail consumption story continues to grow, DMart\u2019s focus on affordability and operational efficiency is likely to support its long-term growth trajectory.<\/p>\n

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