Avenue Supermarts Q2 profit rises 7.64% YoY

Avenue Supermarts Ltd., which operates DMart, reported revenue growth of 18.42% year-on-year to ₹19,206.18 crore for the quarter ended September 2026. Net profit increased 7.64% to ₹803.60 crore. Key Q2 FY27 highlights: Revenue: ₹19,206.18 crore, up 18.42% YoY. Net profit: ₹803.60 crore, up 7.64% YoY. Operating profit (PBIDT): ₹1,426.46 crore, up 12.95%. Operating margin: 7.43%, compared with 7.79% a year earlier. Interest expense: Increased 87.03% to ₹59.55 crore. Profit before tax: Rose 7.68% to ₹1,079.87 crore. Why it matters: Revenue growth remained strong, but profit growth lagged sales growth. The operating margin contracted by 36 basis points, while higher interest and depreciation expenses added pressure below the operating-profit level. The results highlight the importance of balancing store-led expansion and sales growth with cost control and profitability. What to watch next: Operating margins, same-store sales growth, new-store productivity, expense trends and the company's ability to convert revenue growth into stronger profit growth. Learning outcome: Retail investors should assess revenue growth alongside operating margins, interest costs and net profit to understand whether business expansion is translating into sustainable earnings growth.