Avenue Supermarts Limited (DMart) Q1 FY27 Results: Revenue Growth, Margin Trends & Outlook

Avenue Supermarts Limited, the holding company of DMart stores, reported a strong Q1 FY27 performance, despite difficult consumer conditions and subdued growth at mature metro locations, The company was able to leverage its ability to open new stores, heavy customer footfall in non-metro regions, and stringent cost management, though it still faced challenges in terms of profit, with costs being on an uptick and same-store sales growth moderating at metro locations . The Avenue Supermarts Limited share price has continued to attract investor interest as market players assess the long-term growth potential, expansion plans, and earnings of the company . Track strong earnings performers like DMart and make smarter investment decisions with a reliable online trading app in India that keeps you connected to market opportunities in real time.

Q1 FY27 Financial Highlights

In consolidated terms, Avenue Supermarts posted the following:

Growth in revenues was in line with the company's business forecast prior to the quarter, while growth in EBITDA was slightly ahead of growth in revenues on account of operating leverage. But PAT growth trailed behind revenue growth due to increased costs of employees and store expansion . Avenue Supermarts Limited share price movement will be significantly influenced by how effectively the company manages margins in conjunction with aggressive growth strategies

Revenue Growth Driven by Store Expansion

Growth in revenue stood at close to 15%, helped by the continuing network expansion drive as well as strong demand from consumers. DMart opened 3 new stores in the quarter ending June 2026, thus increasing its network to 503 stores in India. Expansion has mainly been seen in Tier-II & Tier-III cities where organized retail presence has been weak along with comparatively lower competition.

Despite strong performance on the sales front, management reported that:

• Old stores in large metro cities saw no growth. 

• Stores in non-metro regions recorded strong double-digit growth.

• Roof sales have been under pressure in mature urban markets owing to softness in discretionary spending.

The success of new stores and efficiency improvement in existing ones will continue to play a key role in determining Avenue Supermarts Limited share price in the quarters ahead

Margin Trends

Although EBITDA margin has marginally increased to 8.0%, profitability is still lower than historical maximum levels.

Some of the major factors include:

• High employee costs

• Increasing store operating expenses

• Investments in logistics and expansion

• Competitive price strategy through EDLP (Everyday Low Price)

PAT margin has decreased from 4.7% to 4.6%. This is an indication that cost inflation still counters some operating leverage derived from sales increase.

Brick-and-Mortar Business Performance

Anshul Asawa, MD & CEO, emphasized that:

• Retail sales increased by 15.1% YoY.

• Stores older than two years reported an increase of 5.5%, which was slightly lower than 7.1% recorded in Q1 FY26. 

• Weakness was observed in metro cities while non-metro cities performed better. 

• The Company is concentrating on controlled store expansions as against rapid rollouts.

Investors watching the Avenue Supermarts Limited share price will be watching carefully how their same store sales growth and profitability is performing.

DMart Ready Continues Rationalisation

The retailer restructured the operational framework of its online grocery business, DMart Ready.

The management said that:

• Operations have been stopped in 7 smaller cities which made little contribution to profits. 

• The firm now runs operations in 11 major cities. 

• The approach adopted by the firm was oriented towards profit and efficiency.

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Balance Sheet and Capital Allocation

The Board has authorized the issue of up to Rs.1,000 crore through privately placed non-convertible debentures (NCDs). This will provide more financial flexibility for expansion and other corporate needs.
Another reason for which the Avenue Supermarts Limited share price  is considered to be a hot stock is because of the sound financial position maintained by the company.

Peer Comparison

DMart continues to focus on execution efficiency, proper inventory management, and ELP approach over aggressive margin enhancement compared to other retailers.

Key Positives

• The company experienced revenue growth at around 15% level. 

• EBITDA growth was greater than revenue growth. 

• Expansion to 503 stores continued. 

• Good performance in Tier-II & III cities. 

• Conservative balance sheet for further expansion.

Key Concerns

• Widespread weakness in SSSG in metro stores. 

• The increase in employee and operational expenses.

• PAT margin continues to remain pressured. 

DMart Ready continues with optimisation of the business.

Outlook

The management sees healthy consumption demand in non-metro areas, whereas metro demand is expected to improve gradually with improving discretionary spend. Store openings will keep occurring till FY27, leading to double-digit top-line growth.

Investor focus will be on: 

• Same-store sales growth (SSSG) 

• Margin improvement amid higher cost 

• Excess of 503 stores in the expansion rate 

• Margin improvement in DMart Ready 

• Spending behavior during festive period

Avenue Supermarts Limited share price outlook f depends on the firm's ability to strike a balance between its growth and margin improvements. While DMart is one of the best organized retail firms in India, in terms of efficient operations and cash flow, its performance in the short run will depend on the revival of its metro stores.

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Frequently Asked Questions

How did Avenue Supermarts Limited perform in Q1 FY27? 

The Avenue Supermarts reported a 14.9% rise in revenue and 11.3% rise in PAT in Q1 FY27 due to continuous business expansion even at increased operating expenses.

What could impact the Avenue Supermarts Limited share price?

The Avenue Supermarts Limited share price would be impacted by store expansion, margin improvement, same-store sales improvement, and festive season demand.

Why does DMart expand into Tier-II and Tier-III cities?

DMart is focusing on smaller cities to capitalize on increased consumer demand and expand its business reach for revenue growth in the long run.

What changes were made in DMart Ready in Q1 FY27?

In Q1 FY27, DMart Ready made a change in its business operation by withdrawing from seven smaller cities and focusing only on profitable business in 11 big cities.

Why should one keep an eye on Avenue Supermarts Limited share price?

One should monitor the Avenue Supermarts Limited share price to analyze the company's performance and expansion process.

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