Avenue Supermarts reports 9% rise in Q2 net profit

The company has reported 7.64% rise in its net profit at Rs 803.60 crore for the quarter ended September 30, 2026 as compared to Rs 746.55 crore for the same quarter in the previous year. The total income of the company has increased by 18.32% at Rs 19,229.45 crore for Q2FY27 as compared to Rs 16,251.71 crore for the corresponding quarter of the previous year. On consolidated basis, the company has reported 8.55% rise in its net profit at Rs 743.57 crore for the quarter ended September 30, 2026 as compared to Rs 685.01 crore for the same quarter in the previous year. The total income of the company increased by 17.74% at Rs 19,657.54 crore for Q2FY27 as compared to Rs 16,695.87 crore for the corresponding quarter previous year. Impact & View : Intensified delivery competition continues to mount pressure on traditional brick-and-mortar footfall productivity. The combination of lower gross margins and a higher cost of retailing per square foot has notably weakened the company's free cash flow (FCF) profile for the quarter. - Rapid inflation in entry-level wages and operational overhead has driven up retail expenses per square foot, meaning the company must generate significantly higher revenue volumes just to sustain baseline profits. -They are expecting the festive season demand and planned price corrections to absorb the margin compression seen this quarter.

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