DMart Q1 FY27 results: Sales up 15%, profit ₹860 crore

DMart Q1 FY27: what the company reported

Avenue Supermarts, the parent of the DMart chain, announced its Q1 FY27 results on 11 July 2026, reporting steady top-line growth but softer momentum in mature stores. The company said revenue rose about 14.8%-14.9% year-on-year, while profit increased 11.3% and crossed ₹860 crore. EBITDA rose 15.4% to ₹1,499 crore, indicating continued operating scale benefits.

But the quarter also highlighted a slowdown in like-for-like growth and a sharp moderation in store additions. That mix of steady financial growth and weaker operating momentum set the tone for how investors and analysts read the numbers.

Consolidated performance: revenue, profit and margins

For the April-June quarter, Avenue Supermarts said consolidated revenue from operations rose 14.8% to ₹18,794.53 crore. Consolidated net profit was reported to have risen 11.3% in the same period, with the update also noting that profit crossed ₹860 crore.

EBITDA in Q1 FY27 stood at ₹1,499 crore, compared with ₹1,299 crore in the corresponding quarter of the previous year. Operating margin was 8.0%, slightly higher than 7.9% a year earlier. The company also referenced overall sales growth of around 15% alongside these results.

Standalone revenue update and sequential growth

Separately, the company’s regulatory filing on the business update showed standalone revenue from operations of ₹18,343.49 crore for the quarter ended June 30, 2026, up 15.13% year-on-year.

On a sequential basis, another comparison in the same set of reports indicated Q1 FY27 revenue increased 3.7% from ₹17,683.86 crore in the March quarter (Q4 FY26). This sequential increase became a key reference point for market participants judging the pace of growth after a period of faster store additions.

Store additions slow sharply; total stores at 503

Avenue Supermarts added three stores during the quarter, taking total store count to 503. The company also disclosed that this store count includes one store at Sanpada, Navi Mumbai, Maharashtra, which is currently closed to customers for reconstruction.

The pace of store additions was notably lower than the year-ago quarter, when DMart opened nine stores. Brokerage commentary also contrasted the quarter with Q4 FY26, when DMart opened 58 stores, and noted the slower pace of expansion as a likely factor behind moderation in revenue growth.

Like-for-like growth cools; metro stores stay flat

The company said growth at stores operating for at least two years slowed to 5.5% from 7.1% last year. It also flagged a geographic split: older stores in large metro cities saw flat growth during the quarter, while stores in non-metros continued to grow well.

Management highlighted that older metro stores typically deliver significantly higher revenue per square foot, making the flat metro performance a key operational datapoint. The company also indicated it is looking beyond the largest metropolitan markets as this like-for-like trend evolves.

Operating metrics: bills up, but revenue per sq ft slips

Operating metrics gave a mixed picture. Customer transactions, measured by bill cuts, rose 13.4% to 11 crore from 9.7 crore a year earlier, suggesting footfalls and shopping trips remained resilient.

At the same time, annualised revenue per square foot declined 2.4% to ₹8,571 from ₹8,779. Together with the moderation in like-for-like growth, these figures suggested that mature stores generated lower incremental productivity than a year earlier even as customer transactions rose.

Category mix: foods steady, GM and apparel improve

Avenue Supermarts reported that foods remained the largest category, though its share eased to 54.9% from 55.6% a year earlier. General Merchandise and Apparel improved its contribution to 25.5% from 24.7%.

This shift pointed to a gradual change in the revenue mix during the quarter, even as the company dealt with different growth outcomes across metros and non-metros.

E-commerce update: exit from seven cities, now in 11

On the e-commerce business, the company said it continued to deepen its focus on large metros while improving its model. It also disclosed that during the quarter it discontinued operations in seven cities, describing them as marginal contributors.

As of June 30, 2026, Avenue E-Commerce operated in 11 cities. The update underlined that the company is pruning coverage where scale is limited while concentrating on priority markets.

Market reaction: stock drops 4%-5% after update

Avenue Supermarts shares fell sharply after the Q1 business update. The stock dropped as much as 4.86% to ₹3,984.20 on the BSE in early trade, with another data point showing it down 4.13% at ₹4,014.85 at 10:10 AM.

In a separate market snapshot, the stock was also cited around ₹4,014.90 on the NSE, down 4.09% within the first hour of trading. Reports also noted the stock had slipped 8% over the past two trading days.

What brokerages flagged: slower growth versus expectations

Motilal Oswal Financial Services said the company’s revenue growth of about 15% year-on-year was weaker than its last published estimate of 19% and below pre-quarter expectations of 17%-18%. The brokerage also linked the softer revenue trajectory to muted store additions in Q1 after a much higher pace of openings in the previous quarter.

Another data point in the same set of reports noted that the company added 85 stores during FY26, reinforcing how Q1 FY27’s net addition of three stores marked a clear slowdown in expansion.

Key numbers at a glance

Why this quarter matters and what to watch

The Q1 FY27 update showed that Avenue Supermarts is still growing revenue and EBITDA at a healthy pace, but the operating story is becoming more nuanced. Slower like-for-like growth, flat performance in older metro stores, and lower revenue per square foot are key variables investors are tracking alongside store expansion.

The next set of updates investors are likely to watch include whether store additions pick up from the current pace, how metro versus non-metro trends evolve, and whether the e-commerce footprint remains stable after the exit from seven cities. Any further commentary around mature-store performance and productivity metrics will remain central to market expectations.