DMart Q1 profit rises 11% but stock slips on margin worry
Avenue Supermarts, the parent of DMart, reported an 11.3% rise in June quarter net profit and a 15% jump in revenue, yet its stock fell more than 4% as investors focused on thin margins and rising online competition.
- Consolidated net profit rose 11.34% to Rs 860.44 crore from Rs 772.81 crore a year earlier
- Consolidated revenue grew 14.88% to Rs 18,794.53 crore for the June quarter
- Operating margin edged up to 7.98% from 7.94%, with EPS at Rs 13.20
- The board cleared a Rs 1,000 crore NCD issue and named Lalit Ahuja as COO
Steady growth, cautious market
Avenue Supermarts, which runs the DMart chain, reported consolidated net profit of Rs 860.44 crore for the quarter ended June 2026, up 11.34% from Rs 772.81 crore a year earlier, according to Dalal Street Investment Journal. Consolidated revenue from operations rose 14.88% to Rs 18,794.53 crore against Rs 16,359.70 crore in the year ago period. On a standalone basis the retailer posted profit of about Rs 936 crore and revenue of roughly Rs 18,343 crore.
Profitability held broadly steady. Operating margin improved slightly to 7.98% from 7.94%, and earnings per share came in at Rs 13.20 versus Rs 11.88 a year earlier. Even so, the stock opened near Rs 3,950, slid to an intraday low of Rs 3,908 and traded down about 2% to 4% after the numbers, as investors weighed pressure on net margins and the cost of defending share against quick commerce grocery players.
Board actions and leadership
The board approved the issuance of non convertible debentures aggregating up to Rs 1,000 crore, a move aimed at supporting store rollout and working capital. It also announced management changes, with Lalit Ahuja appointed chief operating officer effective 13 July 2026. DMart has continued to add stores through the value retail format that anchors its everyday low price model.
Why it matters for Indian brands: DMart remains the bellwether for physical value retail, and its steady footfall shows that discount led store formats can still grow double digits even as instant delivery apps chase the same grocery basket. Brands that supply both channels will watch how the chain balances price, margin and expansion in the year ahead.
Zane’s analysis draws on original reporting by Dalal Street Investment Journal. Read the original report.