Avenue Supermarts, the company behind DMart, reported consolidated net profit of ₹743 crore for the second quarter of FY27. The result represents an 8.5% year-on-year increase, according to the reported figures.
Revenue for the July–September quarter reached ₹19,644.01 crore, an 18% increase from ₹16,676.30 crore in the corresponding quarter last year. The company's expenses also rose 18% during the period.
Store expansion and existing outlets
Avenue Supermarts opened 18 new stores during FY27 so far. The expansion took its total store count across the country to 518.
The reported performance also highlighted growth from older outlets. Growth at existing stores increased from 6.8% to 9.5%, indicating that the quarter's sales increase was not linked only to newly opened locations.
Costs and pricing strategy
The company's chief executive officer, Anshul Asawa, attributed higher operating expenses partly to increased salaries for entry-level employees. The rise in staff costs came as the retailer continued its low-price approach.
The figures show a difference between revenue growth and profit growth. Revenue rose 18%, while net profit increased 8.5%. The reported explanation points to higher costs affecting profit expansion.
Share performance and company background
Before the results were released, Avenue Supermarts shares closed at 3,521 on Friday, 9 October, after falling 1.79%. The stock was reported to be down 5% over 1 month and about 20% over 1 year.
Avenue Supermarts operates the DMart supermarket chain. Radhakishan Damani founded DMart and opened its first store in Mumbai's Powai area in 2002. The company made its stock-market debut in 2017 and was listed on 21 March that year.
Neville Noronha is the company's chief executive officer. Avenue Supermarts was reported to have a market capitalisation of ₹39,988 crore when it listed, compared with ₹2.29 lakh crore at the time of the report.
Conclusion
DMart's reported second-quarter performance combined 18% revenue growth with 8.5% profit growth, supported by store expansion and stronger growth at existing outlets, while higher costs remained a factor in earnings.
Frequently Asked Questions
Q. What was DMart's consolidated net profit in the second quarter of FY27?
Avenue Supermarts reported consolidated net profit of ₹743 crore.
Q. How much did the company's revenue grow?
Revenue increased 18% year on year to ₹19,644.01 crore.
Q. How many stores did DMart have after the expansion?
The company's total store count reached 518 after it opened 18 stores during FY27 so far.
Q. What happened to growth at existing stores?
Growth at existing stores increased from 6.8% to 9.5%.
Q. What cost pressure did the company identify?
Chief executive officer Anshul Asawa said higher salaries for entry-level employees contributed to increased operating expenses.
