D-Mart Reports 8.5% Profit Increase in Q2FY27
Avenue Supermarts Ltd sees significant growth in revenue and profit for the September quarter.
D-Mart's net profit rose to Rs 742.98 crore, an 8.5% increase year-on-year.
Revenue from operations grew by 17.8% to Rs 19,644 crore.
The retailer opened 15 new stores, bringing the total to 518.
Avenue Supermarts Ltd, the operator of the D-Mart retail chain, announced an 8.5% increase in consolidated net profit for the September quarter of FY27, reaching Rs 742.98 crore. This marks a notable rise from Rs 684.85 crore reported in the same quarter last year. The company revealed these figures on Saturday, highlighting its strong performance amidst a competitive retail landscape.
In addition to profit growth, D-Mart experienced a 17.8% increase in revenue from operations, totaling Rs 19,644 crore compared to Rs 16,676.30 crore in the previous year. The consolidated EBITDA margin for the quarter was recorded at 7.1%, slightly down from 7.3% in the corresponding period last year. The rise in revenue reflects the company's successful strategies in expanding its market presence and enhancing customer engagement.
During the quarter, D-Mart opened 15 new stores, bringing its total store count to 518. The performance of stores that have been operational for two years or more also showed improvement, with a growth rate of 9.5% compared to 6.8% in the same quarter last year. Anshul Asawa, the managing director and CEO, noted that the company’s pricing strategy remains robust, even in an inflationary environment, although wage inflation has slightly increased operating expenses.
Total expenses for the quarter rose by 18.3% year-on-year, amounting to Rs 18,632.70 crore. Meanwhile, total income, including other income, increased by 17.7% to Rs 19,657.54 crore. The food segment was the largest contributor to revenue in the first half of FY27, accounting for 56.9%, followed by general merchandise and apparel at 23.62%, and non-food fast-moving consumer goods at 19.4%.
Looking ahead, Vikram Dasu, the whole-time director and CEO of Avenue E-Commerce, emphasized the focus on enhancing operational efficiencies and customer experience through the DMart Ready business. As the company continues to expand its footprint, stakeholders will be keenly observing its strategies and performance in the upcoming quarters.
