Avenue Supermarts revenue grows 18.4% in Q2

Avenue Supermarts Limited reported standalone revenue of ₹19,206 crore in Q2 FY27, up 18.4% YoY. Store count increased to 518 by September-end. The headline growth looks strong, especially after 14.9% revenue growth in Q1 FY27. Revenue also grew 4.7% sequentially from ₹18,343 crore in Q1. But I would not treat the 18.4% number alone as a reason to turn bullish on DMART. The key question is how much of this growth is coming from existing stores versus the aggressive store expansion. Avenue Supermarts had 432 stores at the end of Q2 FY26 and now has 518, so the store network has expanded materially over the last year. This makes the upcoming full Q2 results more important than the revenue headline. I will be watching same-store growth, EBITDA margin and store productivity. In Q2 FY26, standalone revenue grew 15.4%, but EBITDA grew only 11.3% and PAT just 5.1%. Margin expansion therefore remains an important part of the investment case. My view: The revenue momentum is encouraging, but I would wait for the profitability numbers before becoming more constructive. A combination of double-digit revenue growth and stable or improving margins would strengthen the case. Weak margin performance would suggest that growth is coming at a higher cost. What I am watching next: Q2 EBITDA margin, same-store growth and revenue productivity of the newer stores. Disclosure: I do not hold any position in Avenue Supermarts Limited as of the date of this post.