DMART

Avenue Supermarts' Q1 FY27 results reveal a company hitting its operational stride after a softer Q4 FY26. Net sales of ₹18,794.53 crores represented the highest quarterly revenue in the company's history, driven by same-store sales growth and contributions from new store additions. The 6.28% sequential revenue growth is particularly impressive given the typically subdued April-June quarter, which falls outside major festive periods. The company's operating profit (PBDIT) excluding other income surged to ₹1,499.34 crores, up 23.86% quarter-on-quarter, significantly outpacing revenue growth. This operating leverage translated into margin expansion of 113 basis points to 7.98%, the highest quarterly margin since December 2025. Year-on-year, operating profit grew faster than revenue, indicating improved procurement terms, better product mix, and operating efficiencies from maturing stores. Profitability metrics showed broad-based improvement. Gross profit margin stood at 7.83%, up from 6.72% in Q4 FY26, whilst PAT margin of 4.58% marked a substantial recovery from the previous quarter's 3.71%. The tax rate remained stable at 27.27%, marginally below the 27.40% in Q4 FY26, reflecting consistent tax planning and no material one-off adjustments.