Avenue Supermarts Ltd. Q2 net profit rises 8.5%

Avenue Supermarts, the operator of retail chain DMart, reported an 8.5% year-on-year increase in consolidated net profit to Rs 742.98 crore for the September quarter of FY27, according to an announcement made on Saturday. The company had recorded a consolidated net profit of Rs 684.85 crore in the corresponding quarter of the previous financial year. Revenue from operations rose 17.8% year-on-year to Rs 19,644 crore, compared with Rs 16,676.30 crore a year earlier. However, the company’s consolidated EBITDA margin declined to 7.1% in Q2FY27 from 7.3% in the corresponding period last year. During the quarter, DMart opened 15 new stores, taking its total store count to 518. Meanwhile, stores that have been operational for two years or more recorded growth of 9.5% during the September quarter, up from 6.8% in the year-ago period. Commenting on the operating environment, Anshul Asawa, managing director and chief executive officer of Avenue Supermarts, said the company’s pricing proposition remained strong despite inflationary pressures. He added that wage inflation at the entry level had led to a marginal increase in operating expenses. In terms of revenue contribution during the first half of FY27, the food category accounted for 56.9% of the company’s overall revenue. General merchandise and apparel contributed 23.62%, while non-food fast-moving consumer goods (FMCG) accounted for the remaining 19.4%.