DMart Q1 FY27: Revenue up 14.9% but margins squeezed by costs, slowing metro-store growth

Avenue Supermarts posted Q1 revenue of ₹18,794.5 crore (+14.9% YoY) and net profit of ₹860.4 crore (+11.3%), but expenses of ₹17,637.2 crore and slowing mature-store growth (5.5% vs 7.1%) pressured margins as quick commerce eats into urban wallets. Store count hit 503, with just 3 added.

— Source publishedSat, 11 Jul, 2026, 17:23 IST·First seen Sat, 11 Jul, 2026, 17:27 IST·Source Mint · Companies

What happened

DMart's Q1 FY27 revenue rose 14.9% to ₹18,794.5 crore, but higher costs and slowing mature metro-store growth (5.5%) squeezed margins as quick commerce

Key facts

  • revenue ₹18,794.5 crore
  • up 14.9% YoY
  • net profit ₹860.4 crore
  • up 11.3%
  • expenses ₹17,637.2 crore
  • mature-store growth 5.5% vs 7.1%
  • 503 stores
  • 3 stores added
  • food & grocery 54.9%
  • general merchandise & apparel 25.5%
  • non-food FMCG 19.6%

Why this matters

With only 3 stores added (503 total) and urban wallets shifting to quick commerce, evaluate build-vs-buy options in last-mile delivery or dark-store capabilities to defend metro share.

What to watch

  • Mature-store growth trend in Q2 FY27 (below 5.5% confirms structural drag)
  • Gross and EBITDA margin trajectory vs cost inflation
  • Quick-commerce GMV growth in metros (Blinkit/Zepto/Instamart data)
  • Store addition cadence — sustained low adds signal saturation
  • DMart Ready order volume / online contribution disclosures
  • Monitor DMart Ready capex disclosures and dark-store rollout pace in next earnings call
  • Watch for pricing/promotion intensity shifts to defend urban footfall
  • Track new-store mix shift toward tier-2/3 geographies
  • Assess broker target revisions given premium valuation vs slowing SSSG

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