DMart Q1 FY27 Results: Revenue At ₹18,343 Crore, Stocks Falls 2%

Shares of Avenue Supermarts, the operator of the DMart retail chain, came under pressure on Monday, July 13, after the company reported its earnings for the quarter ended June 30, 2026. Investors reacted to slowing growth in mature metro stores despite another quarter of double-digit revenue and profit growth.

Avenue Supermarts shares declined over 4% in early trade before trimming some losses as the session progressed.

The company reported a consolidated net profit of ₹860.6 crore for the first quarter of FY27, up 11.3% from ₹773 crore in the corresponding quarter last year. Consolidated revenue from operations rose 14.9% year-on-year to ₹18,794 crore, compared with ₹16,360 crore a year ago.

At the operating level, EBITDA increased to ₹1,499 crore from ₹1,299 crore in the year-ago period, while the EBITDA margin improved marginally to 7.97% from 7.94%.

DMart Posts Double-Digit Revenue And Profit Growth In Q1 FY27

On a standalone basis, Avenue Supermarts reported revenue of ₹18,343 crore, marking a 15.1% increase over ₹15,932 crore in the corresponding quarter of the previous financial year.

EBITDA rose 16.3% year-on-year to ₹1,527 crore, while the EBITDA margin expanded to 8.3% from 8.2% a year ago.

Standalone net profit increased 12.8% to ₹936 crore, compared with ₹830 crore in Q1 FY26. The company's profit after tax (PAT) margin, however, eased slightly to 5.1% from 5.2% in the year-ago quarter. Earnings per share (EPS) improved to ₹14.35, up from ₹12.75 last year.

On the consolidated front, PAT margin moderated to 4.6% from 4.7%, while earnings per share rose to ₹13.20 from ₹11.88.

Metro Stores Weigh On Same-Store Sales Growth, Says Management

During the June quarter, Avenue Supermarts added three new DMart stores, taking its total network to 503 stores with a retail business area of around 20.7 million square feet.

Commenting on the quarterly performance, Managing Director and CEO Anshul Asawa said standalone revenue grew 15.1%, while profit increased 12.8% year-on-year.

He said same-store sales growth (SSSG) for stores older than two years moderated to 5.5%, compared with 7.1% in the corresponding quarter last year. According to the management, mature stores in large metropolitan cities witnessed largely flat growth during the quarter, whereas non-metro stores continued to deliver healthy growth.

The company also said DMart Ready continued to sharpen its operating footprint. During the quarter, the online grocery business discontinued operations in seven cities, leaving it operational in 11 cities as it focuses on larger markets.

Another key operating metric also reflected moderation. Revenue from sales per square foot declined on a year-on-year basis, indicating softer throughput at mature stores.

Kotak Neo Research Retains 'Reduce' On Avenue Supermarts As Metro Growth Weakens

Kotak Neo Research said Avenue Supermarts' June-quarter performance came in below expectations, with revenue growth impacted by softer same-store sales growth. According to the research note, management attributed part of the slowdown to nil increase in throughput in mature stores in metro cities. Kotak Neo Research said it has trimmed its same-store sales growth (SSSG) assumptions for DMart, citing the continued impact of quick commerce.

The research note highlighted that the quarter also had a few positives. Gross margin expanded by 50 basis points year-on-year, aided partly by a higher contribution from the general merchandise and apparel segment. Customer bill cuts increased 13.4% year-on-year, while average bill value rose 1.3% during the quarter. The company also added three new stores during the quarter, taking its total store count to 503.

Employee expenses increased 30% year-on-year, while other operating expenses rose 19%, limiting EBITDA margin expansion to 10 basis points, according to Kotak Neo Research. The report also noted that same-store sales growth slowed to 5.5% during Q1 FY27 from 10.8% in the March quarter. DMart Ready's exit from seven cities during the quarter also reflected the company's continued efforts to rationalise its online grocery operations.

Based on its revised outlook, Kotak Neo Research has reduced its revenue estimates for FY27E-FY29E by 3-6% and retained its 'Reduce' rating on Avenue Supermarts. We have revised its fair value to ₹3,850 from ₹4,250, citing expensive valuations and lower valuations assigned to the DMart Ready business.

Avenue Supermarts Share Price In Focus

Following the earnings announcement, investors will closely monitor whether same-store sales growth improves over the coming quarters, particularly in large metropolitan markets where mature stores account for a significant share of revenue.

The pace of new store additions, the performance of non-metro markets and the company's strategy for DMart Ready are also expected to remain key factors influencing Avenue Supermarts' earnings trajectory and investor sentiment in the quarters ahead.

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