DMart Reports Steady FY26 Growth Despite E-commerce Pressure on Profit Margins

Avenue Supermarts Ltd Reports Steady Double-Digit Growth in FY26 Despite Intensifying Competition

Bengaluru: Avenue Supermarts Ltd, the operator of DMart, reported steady double-digit growth in FY26, with revenue increasing 15.8% to ₹66,968.03 crore and net profit standing at ₹3,223.93 crore. The Mumbai-headquartered company also reported revenue of ₹17,204.50 crore for the January-March quarter, up 18.96% year-on-year, while net profit rose 16.9% to ₹724.60 crore.

The company added 58 stores during the quarter, taking its total store count to 500, as it steps up expansion to sustain growth and deepen its presence beyond metro markets amid rising competitive intensity. Same-store sales growth rose to 10.8% during the quarter, up from 8.1% in the same period last year.

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Foods remained the largest contributor to revenue in FY26, followed by general merchandise and apparel, while non-food FMCG accounted for 19.82% of sales. The company's online grocery platform, DMart Ready, has been recalibrating its strategy amid intensifying competition from quick-commerce players, exiting cities and shifting focus towards metro markets and home delivery.

According to Sandeep Abhange, research analyst at LKP Securities, revenue growth was broadly in line with expectations, but margins remained under pressure as losses in the e-commerce business continued to weigh on consolidated performance. Abhange noted that while DMart continues to grow its topline, margin compression reflects a lack of operating leverage, with the online business widening the gap between standalone and consolidated profitability.

The key watch for FY27 will be whether consolidated margins begin converging with standalone margins. Until the online business stops being a drag, pressure on DMart's premium valuation could continue.