DMart Q1 FY27 net profit up 11% to Rs 860 crore as metro store growth stays flat
Avenue Supermarts posted 11.3% profit growth to Rs 860 crore and 14.9% revenue growth to Rs 18,795 crore in Q1 FY27. But only three stores were added (total 503), older-store growth held at 5.5%, and DMart Ready retreated to 11 cities to focus on large metros.
What happened
DMart operator Avenue Supermarts posted 11.3% profit rise to Rs 860 crore in Q1FY27; revenue up 14.9%. Metro older-store growth stayed flat, only three stores
Key facts
- Net profit Rs 860 crore up 11.3%
- Revenue Rs 18,795 crore up 14.9%
- Ebitda Rs 1,499 crore up 15.4%
- Ebitda margin 8%
- EPS Rs 13.20
- 503 stores
- 3 stores added in Q1
- Older-store growth 5.5%
- DMart Ready down to 11 cities
Why this matters
DMart's pullback of DMart Ready to large metros concedes ground in tier-2 online grocery, opening acquisition or partnership opportunities in the markets it's exiting.
What to watch
- Same-store sales growth trend (currently 5.5%) in Q2/Q3 FY27
- Net store count reacceleration above ~10 per quarter
- Quick-commerce (Blinkit, Zepto, Instamart) grocery share gains in metros
- Gross and EBITDA margin direction quarter-over-quarter
- DMart Ready GMV and city expansion/contraction signals
- Watch for management commentary on FY27 store-addition guidance and capex pacing
- Track quarterly store additions ramp in H2 FY27 to confirm this was seasonal vs structural slowdown
- Monitor DMart Ready reinvestment and dark-store buildout in the retained 11 metros
- Assess gross margin trajectory vs Reliance Retail and quick-commerce pricing pressure