DMART

Reports Modest Q2 Profit Growth Amid Margin Compression

Avenue Supermarts Ltd (

) reported a modest 3.85% rise in consolidated net profit to ₹684.85 crore for the quarter ended September 2025 (Q2FY26). → Revenue from operations showed stronger growth, rising by 15.45% year-on-year (y-o-y) to ₹16,676.30 crore. Despite the strong revenue growth, the Profit After Tax (PAT) margin decreased to 4.1% in Q2FY26 from 4.6% in the same quarter last year, indicating margin compression. → The company's total expenses increased by a higher rate of 16% y-o-y to ₹15,751.08 crore, contributing to the margin decline. Sales performance in two-years and older DMart stores grew by 6.8% during Q2FY26 compared to Q2FY25. → DMart opened 8 new stores during the quarter, bringing the total store count to 432 as of September 30, 2025. → The company confirmed that it passed on the benefit of reduced GST rates to customers wherever applicable, following the government's recent announcement on GST reforms. → DMart Ready, the e-commerce arm, expanded its presence by adding 10 new fulfillment centers in existing markets and continuing to invest in large metro cities. However, DMart Ready also ceased operations in five smaller cities—Amritsar, Belagavi, Bhilai, Chandigarh, and Ghaziabad—and is now operational in 19 cities across India. → Avenue Supermarts, promoted by Radhakishan Damani, maintains a strong retail presence across major Indian markets like Maharashtra, Gujarat, and the Southern states.