Avenue Supermarts Ltd, the parent company of retail giant DMart, announced its Q2FY26 results on Saturday, reporting a modest rise in profit alongside a healthy revenue growth.

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Profit Margins Narrow Slightly Operating Expenses Rise

The company’s consolidated net profit stood at Rs 684.85 crore, marking a 3.85% increase year-on-year compared to Rs 659.44 crore in the same quarter last year.

Revenue from operations showed a stronger upward trend, rising 15.45% YoY to Rs 16,676.30 crore, up from Rs 14,444.50 crore in Q2FY25. This demonstrates the continued demand and steady expansion of DMart’s retail operations across India.

Profit Margins Narrow Slightly

Despite higher revenue, Avenue Supermarts’ EBITDA margins narrowed by 29 basis points, declining to 7.28% from 7.57% last year. Analysts at Jefferies had estimated margins around 7.5%, indicating the company performed slightly below expectations on operational efficiency.

The company’s PAT margin also fell, standing at 4.1% in Q2FY26, down from 4.6% in Q2FY25. This suggests that while sales have grown, higher expenses have put some pressure on overall profitability.

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Operating Expenses Rise

Total expenses during the quarter increased 16% to Rs 15,751.08 crore, reflecting the company’s ongoing investment in expansion, supply chain, and operational costs. Total income from other sources added to the overall revenue, but the rise in expenses contributed to the slight margin compression.

Avenue Supermarts’ strong revenue growth, despite rising costs, reflects its ability to attract more customers and expand its footprint in a competitive retail market.

Key Highlights of Q2FY26

Net Profit: Rs 684.85 crore (+3.85% YoY)
Revenue from Operations: Rs 16,676.30 crore (+15.45% YoY)
EBITDA Margin: 7.28% (down 29 bps YoY)
PAT Margin: 4.1% (down from 4.6% YoY)
Total Expenses: Rs 15,751.08 crore (+16% YoY)

Outlook

Avenue Supermarts continues to maintain its position as a leading retail player in India. While profit margins have seen slight pressure due to higher costs, the company’s robust revenue growth signals strong consumer demand and effective business expansion. Investors and market watchers will likely focus on how the company manages costs and margins in the coming quarters.

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