Avenue Supermarts Q2 FY27: Revenue ₹19,644 Cr

Key takeaway from the September-quarter update

Avenue Supermarts Limited, which operates the D-Mart retail chain, reported higher revenue and profit for the quarter ended September 30, 2026 (Q2 FY27). The company disclosed both standalone and consolidated numbers, along with store additions during the quarter. Standalone revenue rose 18.4% year-on-year to ₹19,206.18 crore, while consolidated revenue increased 17.8% to ₹19,644.01 crore. Profit growth was slower than revenue growth, and margins were slightly lower on the standalone EBITDA line. The quarter also included a visible pickup in store additions compared with Q1 FY27.

What the company reported for Q2 FY27

On a standalone basis, Avenue Supermarts reported total revenue of ₹19,206 crore in Q2 FY27, up 18.4% from the year-ago period. Standalone net profit came in at ₹804 crore, a 7.6% year-on-year increase. Standalone EBITDA was reported at ₹1,403 crore, up 14.1% from Q2 FY26. The standalone EBITDA margin slipped to 7.3% from 7.6% in Q2 FY26, indicating that profitability did not expand in line with revenue. Basic EPS improved to ₹12.32 from ₹11.47 in the same quarter last year.

Consolidated performance: revenue up 17.8%, profit up 8.46%

On a consolidated basis, Avenue Supermarts reported total revenue of ₹19,644.01 crore for Q2 FY27, compared with ₹16,676 crore a year earlier. Consolidated net profit (PAT) was reported at ₹742.98 crore, up 8.46% year-on-year from ₹685 crore. The filing also disclosed an operating profit of ₹1,392.96 crore, up from ₹1,214 crore in Q2 FY26, translating into 14.74% year-on-year growth. These consolidated metrics show that revenue momentum remained strong, while profit growth was in high single digits.

Business update versus full results: why the distinction mattered

Ahead of the full financial results, the company had issued a Q2 business update that focused on revenue and store numbers. That update stated that the revenue figure was subject to limited review by auditors. It did not include details such as profitability, margins, like-for-like growth, or store productivity metrics. This gap was highlighted in market commentary because investors could see sales growth, but not the quality of that growth through margins and earnings. The board meeting to consider and approve the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026 was scheduled for October 10, 2026.

Store additions and network size: 15 new stores in Q2

Avenue Supermarts added 15 new stores during Q2 FY27, compared with eight stores in the year-ago period. The total number of stores reached 518 as of September 30, 2026, with one store temporarily closed for renovations. The company’s store network was described as having increased by about 20% year-on-year. Store additions were also discussed in the context of the first half: 18 stores were added in H1 FY27 versus 17 in H1 FY26. The company had added three stores in Q1 FY27, making the Q2 addition a sequential improvement.

Sequential revenue trend: Q2 ahead of Q1 FY27

The Q2 FY27 standalone revenue of ₹19,206.18 crore was also reported as 4.7% higher than Q1 FY27 revenue of ₹18,343.49 crore. This indicated a sequential recovery in growth momentum after Q1. Market coverage noted that revenue growth in Q2 accelerated from 15.1% in the first quarter. It also said Q2 revenue was 1.2% above CLSA’s estimate and 1.1% ahead of consensus. While these points supported the sales trajectory, the market focus stayed on profitability and margin delivery once the full results were released.

Stock reaction and what investors tracked

Despite the revenue growth update, Avenue Supermarts shares came under pressure in early October. One report said the stock was trading lower by about 6% on Monday, October 5, after the business update. Another described a fall of about 5% on October 5 to around ₹3,621 from an October 1 close of ₹3,813, and noted the stock was close to a 52-week low of ₹3,528.65. In a separate market update, shares were reported to have settled 0.75% higher at ₹3,830 on Thursday. The key driver behind the mixed reaction was the absence of profitability details in the initial update, followed by the market parsing the complete quarter’s numbers.

Broker and macro references cited during the quarter

Broker commentary referenced inflation as a contextual input for the quarter. One note cited consumer price index (CPI) inflation, based on July and August data, at 4.9% during the quarter, compared with 3.9% in Q1 FY27. Bernstein was cited as having an ‘Outperform’ rating with a price target of ₹5,000. The same coverage said the brokerage expected Avenue Supermarts to maintain the pace of store additions seen in FY26 during FY27 and expected Q2 margins to be better than anticipated. These references were part of the market narrative around whether volume-led growth could be protected amid changing cost and pricing conditions.

Key numbers snapshot

Analysis: growth stayed strong, margins did not expand

The quarter reinforced Avenue Supermarts’ ability to grow sales at a healthy pace, with both standalone and consolidated revenues rising in the high teens. At the same time, standalone profitability expanded more slowly than revenue, and the EBITDA margin eased to 7.3% from 7.6%. This mattered because the initial business update only disclosed top-line data, leaving investors to wait for the full picture on margins, earnings, and operating leverage. Store additions improved sequentially in Q2, but commentary also pointed to a “muted” pace in the broader context of near-term growth expectations. The combined effect was visible in the share price reaction around early October, where sales growth did not immediately translate into positive stock performance.

Conclusion

Avenue Supermarts’ Q2 FY27 results showed strong revenue growth alongside modest profit growth and slightly lower standalone EBITDA margin. The company expanded its network to 518 stores after adding 15 stores during the quarter. With the board meeting scheduled for October 10, 2026 to approve the unaudited standalone and consolidated results for the quarter and half-year, the market focus shifted from revenue momentum to margins and profit delivery.