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Our read

DMart is likely to keep profit growth trailing sales growth as it reinvests in prices and new stores.

For operators

DMart grew revenue 17.8% to ₹19,644 crore but net profit only 8.5% to ₹743.5 crore, so value-retail operators should check whether their own cost and pricing discipline is keeping pace with volume growth.

Watch

Revenue growth against the 17.8% reported for Q2, in the next quarterly results

The report, : DMart Q2 net profit rises 8.5% to ₹743.5 crore as revenue climbs 17.8% to ₹19,644 crore

DMart is among the shares in focus on Monday 12 October, alongside Bazaar Style, which opened a Style Baazar store in Raniganj, West Bengal, taking its total to 286 stores. GIFT Nifty pointed to a higher open for the market.

Year-on-year growth in Q2: revenue against net profit, with amounts
  • Revenue, ₹19,644 crore17.8%
  • Net profit, ₹743.5 crore8.5%

Newer report adds to this story , : EBITDA margin was 7.3%, below the 7.7% poll estimate; shares fell 4%.

Read next

  1. DMart grows revenue 18.4% but value retail stocks slide as V2 Retail cuts same-store sales guidance, , Mint
  2. Trent jumps 12.64% to Rs 2,906 on 23% Q2 standalone revenue growth as Avenue Supermarts hits a 52-week low, , Moneycontrol

07:30 IST · 10 moves · what each means · free

Why it matters to operators and investors

Bazaar Style Retail's new Style Baazar store in Raniganj, West Bengal, takes its network to 286 stores and shows value-format expansion continuing into smaller towns, which makes it a useful benchmark for partnership or acquisition screening.

What to watch next

  • Net profit growth above Q2's 8.5% in the Q3 results would mean margins are recovering and revenue growth is reaching profit again, a harder bar for rivals.
  • DMart's new-store additions disclosed in the next quarterly update
  • Rival price cuts or promotions in staples and FMCG categories
  • Bazaar Style Retail store count past 286 at its next opening announcement

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • DMart is likely to keep opening stores at its current pace, favouring volume growth over near-term margin.
  • DMart may hold shelf prices rather than pass cost increases to customers, so its value positioning stays intact.
  • Expect rivals in value and grocery retail to answer DMart's growth with sharper promotions in overlapping catchments.
  • Analysts are likely to focus on the gap between revenue and profit growth when they revise estimates after the Q2 results.
  • Bazaar Style Retail is likely to keep adding small-town stores beyond its current 286, as with the Raniganj opening.

The source

Source Read the source at Mint Published

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