DMart Q2 FY27 Results: Profit Rises 8.5% to Rs 743 Crore, Revenue Grows 17.8% as Margins Decline

DMart's parent company, Avenue Supermarts Limited, reported an 8.5% year-on-year (YoY) increase in consolidated net profit to Rs 743 crore in Q2 FY27, while revenue grew 17.8% to Rs 19,644 crore. The company added 15 stores during the July-September 2026 quarter, taking its network to 518 stores. However, EBITDA and net profit margins declined despite higher sales.

The DMart Q2 FY27 results, announced on 10 October 2026, showed stronger same-store sales growth alongside rising operating expenses, depreciation and finance costs. This analysis covers DMart's financial performance, store expansion, profitability, DMart Ready operations, cash flow, debt and the key indicators investors should monitor.

Table of Contents

1. DMart Q2 FY27 Results: Key Highlights
2. DMart Q2 FY27 Consolidated Financial Results
3. DMart Q2 FY27 Standalone Financial Results
4. DMart Q2 FY27 Quarter-on-Quarter Performance
5. DMart Store Expansion and Same-Store Sales
6. Why DMart's Profit Margins Declined
7. DMart Revenue Mix and Store Productivity
8. DMart Ready and Online Grocery Strategy
9. DMart H1 FY27 Financial Results
10. DMart Cash Flow, Inventory and Capital Expenditure
11. DMart Balance Sheet and Debt
12. DMart Competitive Strengths and Key Risks
13. What Investors Should Watch Next
14. DMart Q2 FY27 Results: Conclusion

DMart Q2 FY27 Results: Key Highlights

DMart's Q2 results for FY27 showed double-digit growth in revenue and EBITDA, supported by new store openings and improving sales at established outlets. However, net profit growth remained below revenue growth.

Particulars	Q2 FY27
Consolidated revenue	Rs 19,644 crore
Revenue growth (YoY)	17.8%
Consolidated EBITDA	Rs 1,393 crore
EBITDA growth (YoY)	14.8%
Consolidated net profit	Rs 743 crore
Net profit growth (YoY)	8.5%
EBITDA margin	7.1%
PAT margin	3.8%
Basic EPS	Rs 11.40
Same-store sales growth	9.5%
New stores opened	15
Total stores	518

Three developments stand out: same-store sales growth improved from 6.8% a year earlier to 9.5%, the company expanded its store network, and profitability margins contracted.

The H1 FY27 financial statements also showed weaker operating cash flow and higher inventory investment, making cash generation another important factor for investors.

Check the DMart share price along with its latest charts and key valuation ratios to assess the stock's market performance against its revenue growth and profitability trends.

DMart Q2 FY27 Consolidated Financial Results

Avenue Supermarts' consolidated financial results include its main retail business and subsidiaries. These figures provide the broader picture of DMart's revenue, operating profitability and earnings.

Consolidated Revenue, EBITDA and Net Profit

Particulars	Q2 FY27	Q2 FY26
Revenue from operations	Rs 19,644.01 cr	Rs 16,676.30 cr
EBITDA	Rs 1,392.96 cr	Rs 1,213.65 cr
EBITDA margin	7.1%	7.3%
Profit before tax	Rs 1,024.84 cr	Rs 944.79 cr
Net profit	Rs 742.98 cr	Rs 684.85 cr
PAT margin	3.8%	4.1%
Basic EPS	Rs 11.40	Rs 10.53

DMart Q2 FY27 Revenue: Growth of 17.8%

DMart Q2 FY27 revenue increased by Rs 2,967.71 crore, from Rs 16,676.30 crore in Q2 FY26 to Rs 19,644.01 crore.

The increase was supported by two factors:

• Expansion of the physical store network, which increased the company's retail presence.

• Higher sales at established stores, reflected in improved same-store sales growth.

However, the company has not disclosed a precise breakdown of how much incremental revenue came from new stores versus existing stores.

EBITDA increased 14.8%, but margin declined

Consolidated EBITDA rose from Rs 1,213.65 crore to Rs 1,392.96 crore, an increase of approximately 14.8%.

Despite this growth, EBITDA margin declined by around 20 basis points, from 7.3% to 7.1%.

This indicates that operating profit grew more slowly than revenue.

For a high-volume, low-margin retailer such as DMart, even a small change in operating costs can have a meaningful effect on profitability.

DMart Q2 FY27 Profit: Growth of 8.5%

DMart Q2 FY27 profit increased to Rs 742.98 crore from Rs 684.85 crore, representing approximately 8.5% YoY growth.

However, the PAT margin declined from 4.1% to 3.8%, while basic EPS increased from Rs 10.53 to Rs 11.40.

Higher depreciation, finance costs and operating expenses contributed to the gap between revenue and profit growth.

The key takeaway is that DMart generated higher sales and earnings, but its ability to convert incremental revenue into net profit weakened compared with the previous year.

DMart Q2 FY27 Standalone Financial Results

Standalone financial results primarily reflect DMart's core physical retail operations and help investors assess the performance of its principal business separately from subsidiaries.

Standalone Revenue and Profitability

The standalone results compare DMart's revenue, operating profitability and earnings for Q2 FY27 with the corresponding quarter of the previous year.

Q2 FY27 Financial Performance (Standalone)

Particulars	Value
Revenue from operations	Rs 19,206.18 cr
EBITDA	Rs 1,403.19 cr
EBITDA margin	7.3%
Profit before tax	Rs 1,079.87 cr
PAT	Rs 803.60 cr
PAT margin	4.2%
Basic EPS	Rs 12.32

Q2 FY26 Financial Performance (Standalone)

Particulars	Value
Revenue from operations	Rs 16,218.79 cr
EBITDA	Rs 1,229.96 cr
EBITDA margin	7.6%
Profit before tax	Rs 1,002.82 cr
PAT	Rs 746.55 cr
PAT margin	4.6%
Basic EPS	Rs 11.47

Standalone revenue increased approximately 18.4% YoY, EBITDA grew 14.1%, and PAT rose 7.6%.

However, EBITDA margin declined by around 30 basis points, while PAT margin fell by approximately 40 basis points.

This indicates that the core retail business continued expanding, but profitability did not improve at the same pace as sales.

Why was standalone profit higher than consolidated profit?

DMart reported standalone PAT of Rs 803.60 crore, compared with consolidated PAT of Rs 742.98 crore.

The difference reflects subsidiary performance and consolidation adjustments.

The consolidated auditor's review separately mentions a subsidiary reporting quarterly revenue of Rs 971.23 crore and a net loss of Rs 75.35 crore. However, that review note does not identify the subsidiary by name.

Therefore, these figures should not automatically be treated as DMart Ready's separately disclosed financial performance.

For investors, the important point is that consolidated profitability remained below standalone profitability.

DMart Q2 FY27 Quarter-on-Quarter Performance

A comparison with Q1 FY27 provides additional insight into DMart's operating performance.

While revenue increased sequentially, EBITDA and PAT declined.

DMart Q2 FY27 Performance

Particulars	Q2 FY27
Revenue	₹19,644.01 crore
EBITDA	₹1,392.96 crore
EBITDA margin	7.1%
PAT	₹742.98 crore
PAT margin	3.8%
Basic EPS	₹11.40
Same-store sales growth	9.5%
New stores added	15

DMart Q1 FY27 Performance

Particulars	Q1 FY27
Revenue	₹18,794.53 crore
EBITDA	₹1,499.34 crore
EBITDA margin	8.0%
PAT	₹860.44 crore
PAT margin	4.6%
Basic EPS	₹13.20
Same-store sales growth	5.5%
New stores added	3

Sequentially, consolidated revenue increased approximately 4.5%, while EBITDA declined 7.1% and PAT fell 13.7%.

Metric	Change
Revenue	4.5
EBITDA	-7.1
PAT	-13.7

The comparison shows that stronger sales did not translate into higher sequential earnings.

However, quarterly retail performance can be affected by seasonal demand, product mix, promotional activity and inventory planning. A single sequential decline is insufficient to establish a sustained deterioration in profitability.

Want to understand how DMart's performance changed between the first and second quarters? Read the DMart Q1 FY27 Results Analysis to compare revenue growth, profit margins, store expansion and operating performance.

DMart Store Expansion and Same-Store Sales

DMart's growth depends on expanding its physical retail network and generating higher sales from existing stores.

Both indicators improved during Q2 FY27.

DMart store count reached 518

DMart opened 15 stores during Q2 FY27, compared with three stores in Q1 FY27.

The company added 18 stores during H1 FY27, taking its network to 518 stores as at 30 September 2026.

DMart Store Network in Q2 FY27

Store Network Metric	Q2 FY27
Total stores	518
Retail business area	21.4 million sq. ft.
Same-store sales growth	9.5%
Total bills generated	11.1 crore
Annualised sales per sq. ft.	₹8,741

DMart Store Network in Q2 FY26

Store Network Metric	Q2 FY26
Total stores	432
Retail business area	17.9 million sq. ft.
Same-store sales growth	6.8%
Total bills generated	9.7 crore
Annualised sales per sq. ft.	₹8,692

Source: Avenue Supermarts' H1 FY27 investor presentation. The store count includes the Sanpada store in Navi Mumbai, which is temporarily closed for reconstruction.

The store network expanded approximately 19.9% YoY, while retail business area increased around 19.6%.

DMart's cluster-based expansion strategy can help coordinate distribution, logistics and store operations as the network grows.

Same-store sales growth improved to 9.5%

DMart reported like-for-like sales growth of 9.5% in Q2 FY27, compared with 6.8% in Q2 FY26 and 5.5% in Q1 FY27.

The company measures like-for-like sales growth using stores operational for at least 24 months at the end of the reporting period.

This metric matters because it measures sales growth at established stores rather than growth driven solely by new openings.

Stronger same-store sales can support operating leverage if existing infrastructure generates more revenue without a proportional increase in expenses.

However, investors should monitor whether this improvement continues over several quarters.

Customer transactions increased

DMart's total bill cuts increased from 9.7 crore to 11.1 crore, representing approximately 14.4% YoY growth.

This indicates an increase in transactions across its store network.

However, bill cuts represent transactions, not unique customers. A single customer can generate multiple bills during the quarter.

Store productivity improved marginally

Annualised sales per retail square foot increased from Rs 8,692 to Rs 8,741, a rise of approximately 0.6%.

This increase was modest compared with the growth in the store network.

New stores generally require time to establish a customer base and reach mature sales levels, making overall productivity important to monitor during expansion.

The company's sales-per-square-foot metric is calculated using standalone sales and quarter-end retail area. It is not directly comparable with like-for-like sales growth.

Why DMart's Profit Margins Declined

The main profitability concern in the DMart Q2 FY27 financial results was the difference between revenue growth of 17.8% and PAT growth of 8.5%.

Higher operating expenses, depreciation and finance costs affected the company's earnings.

Employee and operating expenses increased

The consolidated financial statements reported higher costs across several expense categories.

DMart Expenses in Q2 FY27

Expense	Q2 FY27
Employee benefits	₹447.14 crore
Other expenses	₹1,091.83 crore
Depreciation and amortisation	₹317.75 crore
Finance costs	₹63.90 crore

DMart Expenses in Q2 FY26

Expense	Q2 FY26
Employee benefits	₹376.83 crore
Other expenses	₹922.80 crore
Depreciation and amortisation	₹253.47 crore
Finance costs	₹34.96 crore

Employee expenses increased approximately 18.7%, while other expenses rose 18.3%. Both grew slightly faster than revenue.

Managing Director and CEO Anshul Asawa specifically identified entry-level wage inflation as a factor contributing to a marginal increase in operating expenses.

However, management did not quantify the precise impact of wage inflation on EBITDA margin.

Depreciation and finance costs affected profit growth

Depreciation and amortisation increased approximately 25.4%, while finance costs rose around 82.8%.

As DMart expands, investment in stores, equipment and related assets can increase depreciation expenses.

Similarly, greater financing requirements can increase interest and other finance costs.

These expenses are excluded from EBITDA but affect profit before tax and net profit.

What does the margin decline mean for investors?

DMart operates on an everyday-low-cost and everyday-low-price retail model, making cost control central to profitability.

The margin decline indicates that the company's cost base grew faster than operating profit during the quarter.

However, the financial disclosures do not establish that higher discounts, quick-commerce competition or a specific merchandise category caused the decline.

The company has not provided a detailed quarterly category-wise margin reconciliation.

DMart Revenue Mix and Store Productivity

DMart operates across three broad product categories: foods, non-food FMCG, and general merchandise and apparel.

The H1 FY27 investor presentation provides the following product revenue mix.

DMart Revenue Mix in H1 FY27

Product Category	H1 FY27
Foods	56.90%
Non-food FMCG	19.48%
General merchandise and apparel	23.62%

DMart Revenue Mix in H1 FY26

Product Category	H1 FY26
Foods	57.01%
Non-food FMCG	19.65%
General merchandise and apparel	23.34%

Source: Avenue Supermarts' H1 FY27 investor presentation. Figures represent half-year revenue composition, not the September quarter alone.

Foods remained the largest contributor

Foods accounted for 56.9% of revenue in H1 FY27.

The category includes groceries, staples, dairy products, beverages, packaged foods and other everyday essentials.

This supports DMart's positioning as a value-oriented retailer focused on regular household purchases.

General merchandise and apparel gained share

The revenue contribution of general merchandise and apparel increased from 23.34% to 23.62%.

This category includes clothing, footwear, household products, appliances and related merchandise.

Changes in product mix can influence margins and inventory requirements.

However, DMart has not disclosed separate EBITDA margins for these categories, so the small increase in general merchandise share cannot be used to explain the overall quarterly margin movement.

DMart Ready and Online Grocery Strategy

DMart Ready is the company's online grocery offering, operated through Avenue E-Commerce Limited.

The business competes in a market where customers increasingly compare grocery prices, delivery convenience and shopping frequency across physical and digital channels.

DMart Ready reduced its geographic presence

DMart Ready operated in 11 cities in H1 FY27, compared with 19 cities in H1 FY26.

In its Q1 FY27 announcement, the company disclosed that it had discontinued operations in seven cities with relatively small business contributions.

The company indicated that it would focus more closely on larger metropolitan markets.

During the Q2 FY27 announcement, Vikram Dasu, CEO of Avenue E-Commerce Limited, reiterated the focus on operational efficiency and improving customer experience in existing cities.

Why is DMart Ready focusing on fewer cities?

Concentrating operations in larger markets may provide opportunities to improve delivery density, fulfilment efficiency and utilisation.

However, the company has not quantified the financial benefits of this strategy for Q2 FY27.

The reduction in city coverage indicates a more selective expansion approach rather than a strategy focused purely on geographic reach.

Is DMart Ready profitable?

Avenue Supermarts reports its business as a single retail operating segment in its consolidated financial statements.

The Q2 disclosures do not provide a complete, separately identified quarterly profit-and-loss statement for DMart Ready.

Consequently, investors cannot reliably determine its exact quarterly operating margin, customer acquisition cost or contribution to consolidated PAT from the available segment disclosures alone.

Future information on online revenue growth, fulfilment efficiency and profitability would help investors assess the progress of this business.

DMart H1 FY27 Financial Results

The six-month performance provides a broader view of DMart's operating trends beyond a single quarter.

For April-September 2026, the company reported growth in revenue and earnings, although margins remained below the previous-year period.

Consolidated Revenue in H1 FY27

Particulars	H1 FY27
Revenue	₹38,438.54 crore
EBITDA	₹2,892.30 crore
EBITDA margin	7.5%
PAT	₹1,603.42 crore
PAT margin	4.2%
Basic EPS	₹24.60

Consolidated Revenue in H1 FY26

Particulars	H1 FY26
Revenue	₹33,036.00 crore
EBITDA	₹2,512.69 crore
EBITDA margin	7.6%
PAT	₹1,457.66 crore
PAT margin	4.4%
Basic EPS	₹22.41

Consolidated revenue increased approximately 16.4%, EBITDA rose 15.1%, and PAT grew 10.0%.

Although earnings increased, the EBITDA and PAT margins declined.

Standalone H1 FY27 performance

The standalone business also recorded higher sales and profits.

Particulars	H1 FY27
Revenue	Rs 37,550 crore
Revenue growth	16.8%
EBITDA	Rs 2,930 crore
EBITDA growth	15.2%
EBITDA margin	7.8%
PAT	Rs 1,739 crore
PAT growth	10.3%
PAT margin	4.6%

Standalone EBITDA margin declined from 7.9% to 7.8%, while PAT margin fell from 4.9% to 4.6%.

The half-year results reinforce the trend visible in Q2: DMart continued growing its business, but profit growth remained slower than revenue growth.

DMart Cash Flow, Inventory and Capital Expenditure

DMart's cash-flow performance is an important part of its Q2 FY27 analysis because the company continues investing heavily in store expansion.

Although accounting profits increased during H1 FY27, cash generated from operating activities declined significantly.

Consolidated operating cash flow declined 60.5%

The company's statutory cash-flow statement shows the following movements for the six months ended 30 September 2026.

DMart Operating Cash Flow in H1 FY27

Particulars	H1 FY27
Operating cash flow	₹552.57 crore
Cash absorbed by inventory increase	₹1,386.51 crore
Capital-related cash expenditure	₹2,139.18 crore
Net investing cash outflow	₹2,128.42 crore
Net financing cash inflow	₹1,640.63 crore

DMart Operating Cash Flow in H1 FY26

Particulars	H1 FY26
Operating cash flow	₹1,398.17 crore
Cash absorbed by inventory increase	₹632.97 crore
Capital-related cash expenditure	₹1,752.66 crore
Net investing cash outflow	₹1,854.61 crore
Net financing cash inflow	₹107.13 crore

Operating cash flow fell from Rs 1,398 crore to Rs 553 crore, a decline of approximately 60.5%.

This contrasts with the 10% growth in consolidated PAT during the same period.

Higher inventory absorbed more cash

The increase in inventories absorbed Rs 1,386.51 crore during H1 FY27, compared with Rs 632.97 crore a year earlier.

Higher inventory requirements may accompany store expansion or preparations for future demand. However, stock represents capital tied up until products are sold.

Investors should monitor whether inventory levels normalise and whether higher stock holdings translate into stronger future sales.

Capital expenditure increased

DMart spent approximately Rs 2,139 crore on property, plant and equipment, intangible assets, capital work-in-progress, capital advances and related items.

This was higher than the Rs 1,753 crore spent in H1 FY26.

Using reported operating cash flow less these capital outlays gives a simplified cash shortfall of approximately Rs 1,587 crore.

This is an analytical calculation rather than a company-reported free-cash-flow measure.

The shortfall highlights the importance of internal cash generation and external financing in supporting expansion.

Why statutory operating cash flow matters

DMart's investor presentation reports Rs 2,298 crore under its own measure of net cash flow from operations.

However, the presentation defines this standalone measure using PAT, depreciation and deferred tax. It differs from statutory operating cash flow, which accounts for working-capital movements and cash taxes.

Cash-flow measure	H1 FY27
Presentation's standalone cash-flow proxy	Rs 2,298 cr
Statutory standalone operating cash flow	Rs 599.17 cr
Statutory consolidated operating cash flow	Rs 552.57 cr

For assessing liquidity, cash conversion and expansion funding, statutory operating cash flow is the more appropriate measure.

Inventory efficiency weakened

The H1 FY27 investor presentation also indicated a longer inventory cycle.

DMart Inventory Metrics in H1 FY27

Inventory Metric	H1 FY27
Inventory days	36.1
Inventory turnover ratio	5.9x

DMart Inventory Metrics in H1 FY26

Inventory Metric	H1 FY26
Inventory days	33.9
Inventory turnover ratio	6.3x

Inventory days increased by 2.2 days, while the reported turnover ratio declined.

This suggests that inventory was taking longer to convert into sales.

Whether this reflects temporary stock accumulation or a sustained change in working-capital efficiency will become clearer in subsequent quarters.

DMart Balance Sheet and Debt

DMart's balance sheet expanded during H1 FY27, reflecting its growing retail network, inventory investment and capital expenditure.

The company retained a substantial equity base, but borrowings increased.

Consolidated balance-sheet position

DMart Balance Sheet as of September 2026

Particulars	September 2026
Total assets	₹32,802.73 crore
Total equity	₹26,096.32 crore
Inventories	₹7,287.15 crore
Cash and cash equivalents	₹156.87 crore
Current borrowings	₹2,628.66 crore

DMart Balance Sheet as of March 2026

Particulars	March 2026
Total assets	₹29,524.26 crore
Total equity	₹24,462.36 crore
Inventories	₹5,900.64 crore
Cash and cash equivalents	₹283.71 crore
Current borrowings	₹965.27 crore

Borrowings increased significantly

Current borrowings increased from Rs 965.27 crore at the end of March 2026 to Rs 2,628.66 crore in September 2026.

The investor presentation separately reported standalone total debt, including Ind AS 116 lease liabilities, of approximately Rs 4,079 crore, compared with Rs 2,267 crore at March 2026.

The corresponding standalone debt-to-equity ratio increased from 0.09 times to 0.15 times.

These figures should not be directly compared with consolidated current borrowings because their scope and definitions differ.

Liquidity position

The consolidated current ratio declined from 1.98 times in March 2026 to 1.72 times in September 2026.

Although DMart maintained a substantial equity base, higher inventories, capital expenditure and borrowings increased its financing requirements.

For investors, the key consideration is whether future operating cash flow can support store expansion while limiting additional borrowing requirements.

DMart Competitive Strengths and Key Risks

DMart operates a value-focused supermarket business built around competitive pricing, high sales volumes and operating efficiency.

Its physical network provides scale, but the Q2 FY27 results also highlight risks related to profitability, cash conversion and competition.

DMart's Competitive Strengths

1. Everyday-Low-Price Model: DMart's focus on competitive pricing supports its value proposition and attracts price-conscious households.

2. Large Retail Network: With 518 stores as of September 2026, DMart benefits from an expanding physical presence and wider customer reach.

3. Improving Same-Store Sales: Same-store sales growth increased to 9.5% in Q2 FY27 from 6.8% a year earlier, indicating stronger sales performance at established stores.

4. Cluster-Based Expansion: DMart's strategy of expanding stores in geographic clusters can support supply-chain coordination, logistics efficiency and operating cost control.

5. Broad Product Assortment: Its range of groceries, FMCG products, general merchandise and apparel encourages repeat household purchases.

These strengths support DMart's business model but do not guarantee future growth or margin improvement.

Key Risks Investors Should Monitor

1. Margin Compression: Slower EBITDA and PAT growth compared with revenue growth could affect overall profitability.

2. Wage Inflation: Rising employee costs may increase operating expenses and put further pressure on margins.

3. Inventory Build-Up: Higher inventory levels can tie up working capital and weaken operating cash flow.

4. High Capital Expenditure: Continued store expansion requires substantial investment, increasing funding requirements.

5. Rising Borrowings: Higher debt levels may increase finance costs and affect future net profit growth.

6. Quick-Commerce Competition: Growing competition from online grocery and quick-commerce platforms may influence customer shopping behaviour and spending patterns.

7. DMart Ready Execution: The online grocery business faces challenges related to operational efficiency, geographic expansion and profitability.

8. Valuation Sensitivity: Slower earnings growth or continued margin pressure could affect investor expectations and share-price valuations.

Competition from Quick Commerce

Quick-commerce platforms compete primarily on delivery speed and convenience, while DMart's core business focuses on competitive pricing through physical stores.

Although their operating models differ, both compete for spending on groceries and everyday household products.

Online competition may affect shopping frequency, customer expectations and promotional intensity.

However, the company's Q2 FY27 financial statements do not quantify any revenue loss attributable to quick-commerce competition.

Valuation and Earnings Growth

DMart's consolidated revenue grew 17.8% in Q2 FY27, while net profit increased 8.5%.

This difference matters when assessing valuation because the long-term value of a business depends on its ability to convert revenue growth into sustainable earnings and cash flows.

Investors should assess Avenue Supermarts' prevailing valuation using consolidated earnings, cash generation, store productivity and expansion requirements.

A strong revenue growth rate alone does not establish whether the stock is attractively valued.

What Investors Should Watch Next

DMart's upcoming quarterly results will help determine whether improved same-store sales can translate into stronger margins and operating cash flow.

Indicator	What investors should monitor
Revenue growth	Sustainability of double-digit growth
Same-store sales	Whether 9.5% growth is maintained
EBITDA margin	Recovery from 7.1%
PAT growth	Whether profit growth catches up with revenue
Store additions	Expansion pace and new-store productivity
Sales per square foot	Efficiency of the growing retail network
Inventory days	Whether the increase to 36.1 days reverses
Operating cash flow	Recovery after weak H1 performance
Capital expenditure	Expansion spending versus cash generation
Borrowings	Changes in financing requirements
DMart Ready	Operational efficiency and future disclosures

The three most important indicators are same-store sales growth, EBITDA margin and operating cash flow.

Together, they provide a clearer picture of whether DMart is generating profitable growth rather than relying primarily on store additions.

DMart Q2 FY27 Results: Conclusion

DMart's Q2 FY27 results showed continued business expansion, stronger same-store sales and higher revenue.

Consolidated revenue increased 17.8% to Rs 19,644 crore, EBITDA grew 14.8% to Rs 1,393 crore, and net profit rose 8.5% to Rs 743 crore. The company also opened 15 stores, taking its total network to 518.

However, EBITDA and PAT margins declined, while H1 FY27 operating cash flow weakened because of higher working-capital requirements, particularly inventories. Capital expenditure and borrowings also increased.

For investors, the key factors to monitor are whether DMart can sustain sales growth, improve profitability and generate sufficient operating cash flow to support its expansion. Future performance will depend not only on store additions and revenue growth but also on cost efficiency, inventory management and cash conversion.

DMart Q2 FY27 Results FAQs

1. What was DMart's net profit in Q2 FY27?

DMart reported consolidated net profit of Rs 742.98 crore in Q2 FY27, an increase of approximately 8.5% from Rs 684.85 crore in Q2 FY26. However, its PAT margin declined from 4.1% to 3.8%.

2. What was DMart's revenue in Q2 FY27?

DMart reported consolidated revenue of Rs 19,644.01 crore in Q2 FY27, representing 17.8% year-on-year growth. Standalone revenue increased 18.4% to Rs 19,206.18 crore.

3. Why did DMart's profit margin decline in Q2 FY27?

DMart's profit margin declined because operating expenses, depreciation and finance costs increased. Management specifically identified entry-level wage inflation as a factor affecting operating expenses. Consolidated EBITDA margin declined to 7.1% from 7.3%, while PAT margin fell to 3.8% from 4.1%.

4. How many stores did DMart have in September 2026?

DMart had 518 stores as at 30 September 2026, after adding 15 stores during Q2 FY27. The reported total includes one Navi Mumbai store temporarily closed for reconstruction.

5. What was DMart's same-store sales growth in Q2 FY27?

DMart reported same-store sales growth of 9.5% in Q2 FY27 for stores operational for at least 24 months. This improved from 6.8% in Q2 FY26 and 5.5% in Q1 FY27.