Avenue Supermarts, which operates the DMart retail chain, on Saturday reported an 11.3% year-on-year increase in consolidated net profit to Rs 860 crore for the quarter ended June 30, even as growth at its older stores slowed and remained flat in large metropolitan markets.
The company’s consolidated total revenue rose 14.9% to Rs 18,795 crore during the first quarter of FY27, from Rs 16,360 crore in the year-ago period, according to its regulatory filing released on Saturday.
Consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) increased 15.4% to Rs 1,499 crore from Rs 1,299 crore. The Ebitda margin improved marginally to 8% from 7.9%.
However, the consolidated profit after tax margin narrowed to 4.6% from 4.7% a year earlier, indicating that profit growth continued to lag the expansion in operating earnings. Basic earnings per share rose to Rs 13.20 from Rs 11.88.
Older-store growth slows
Growth at DMart stores that have been operating for at least two years moderated to 5.5% in Q1FY27 from 7.1% in the corresponding quarter last year.
Anshul Asawa, managing director and chief executive officer of Avenue Supermarts, said older stores in large metros, which typically generate significantly higher revenue per square foot, recorded flat growth during the quarter. Stores in non-metro markets, however, continued to grow well, he said.
The performance points to uneven growth across markets, with smaller cities and towns doing slightly better than DMart’s more mature metropolitan network.
The 5.5% growth in older stores also marked a sharp moderation from the 10.8% reported in the March quarter, when consumer purchases temporarily increased amid geopolitical tensions before normalising towards the end of the month.
Consolidated net profit was Rs 76 crore lower than standalone profit during the quarter. The difference was Rs 57 crore in the same period last year. The consolidated accounts include Avenue Supermarts’ subsidiaries, including its DMart Ready e-commerce business.
Store additions slow after Q4 expansion
DMart opened three stores during the June quarter, taking its total network to 503 stores. This was lower than the nine outlets added in the corresponding quarter of the previous financial year.
The slower rollout follows an unusually strong March quarter, when Avenue Supermarts opened 58 stores and crossed the milestone of 500 outlets. The company added 85 stores during FY26, with a large portion of the expansion concentrated in the final quarter.
DMart Ready exits seven cities
Avenue Supermarts also continued to rationalise the footprint of DMart Ready, its online grocery and household-products business.
Vikram Dasu, whole-time director and chief executive officer of Avenue E-Commerce, said the business was deepening its focus on large metro cities while working to improve its operating model.
DMart Ready discontinued operations in seven cities during the quarter, which the management described as marginal contributors. The e-commerce platform was operating in 11 cities as of June 30, down from 18 cities at the end of March.
According to the company filing, DMart follows an “everyday low cost–everyday low price” strategy, relying on procurement, distribution and operating efficiencies to offer products at competitive prices.
As of June 30, the company operates a retail business area of 20.7 million sq. ft. across Maharashtra, Gujarat, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab, NCR, Chhattisgarh, Uttar Pradesh, Daman, Goa, Odisha, Uttarakhand and Haryana.