DMart Q2FY26 Results: Steady Growth Amid Expanding Footprint

When Avenue Supermarts Ltd. (DMart) announced its Q2FY26 results, investors were eager to see how India’s retail giant navigated a changing consumer landscape. The numbers tell a story of steady growth, disciplined operations, and continued expansion — though margins saw some moderation compared to last year.

Highlights of DMart Q2FY26 Results

“Our revenue in Q2FY26 grew by 15.4% over the previous year. Profit after tax grew by 5.1%. Two years and older DMart stores grew by 6.8% during the quarter.”
— Anshul Asawa, CEO-Designate, Avenue Supermarts Limited

Key Financial Metrics (Standalone):

• Total Revenue: ₹16,219 crore (+15.4% YoY)
• EBITDA: ₹1,230 crore (+11.3% YoY)
• PAT: ₹747 crore (+5.1% YoY)
• PAT Margin: 4.6% (vs 5.0% last year)
• Basic EPS: ₹11.47 (vs ₹10.92 in Q2FY25)
• Stores Added in Q2FY26: 8

Half-Year Performance (H1FY26): Consistent Upward Trajectory

DMart continued its steady momentum through the first half of FY26.

H1FY26 Summary:

• Total Revenue: ₹32,151 crore (+15.8% YoY)
• EBITDA: ₹2,543 crore (+9.3% YoY)
• PAT: ₹1,576 crore (+3.5% YoY)
• EBITDA Margin: 7.9% (vs 8.4%)
• PAT Margin: 4.9% (vs 5.5%)
• EPS: ₹24.22 (vs ₹23.41 in H1FY25)
• Stores Added (H1FY26): 17

Operational Update: Expanding Reach Across India

DMart’s expansion continued at a steady clip. As of September 30, 2025, the company operated 432 stores across India, including one under reconstruction in Navi Mumbai.

Cluster Expansion Strategy:

• Maharashtra: 120 stores
• Gujarat: 68 stores
• Telangana: 45 stores
• Karnataka: 41 stores
• Andhra Pradesh: 42 stores

DMart continues to focus on regional clusters, ensuring supply-chain efficiency and consistent customer experience.

Total Retail Business Area: 17.9 million sq. ft.

E-Commerce (DMart Ready) Update

DMart Ready — the company’s e-commerce arm — continues to strengthen its digital reach.

“We added 10 new fulfillment centers in our existing markets and continued to deepen our presence in large metro cities.”
— Vikram Dasu, Whole Time Director & CEO, Avenue E-Commerce Ltd.

Highlights:

• Presence in 19 cities
  
• 10 new fulfilment centers added
• Operations ceased in 5 smaller cities to improve efficiency

DMart Ready remains focused on urban markets where online grocery adoption is strongest.

Financial Insights: Margins Soften, Growth Steady

While DMart maintained double-digit revenue growth, margins faced slight pressure due to GST rate adjustments and higher operating costs.

Key Margin Movements:

• EBITDA Margin: 7.6% (vs 7.9%)
• PAT Margin: 4.6% (vs 5.0%)
• Like-for-like growth (stores >2 years): 6.8%

Despite these shifts, DMart’s Everyday Low Cost – Everyday Low Price (EDLC-EDLP) model continues to drive high customer loyalty.

Balance Sheet Strength: Debt-Light and Cash-Rich

DMart remains among the most financially disciplined retailers in India.

• Debt-to-Equity Ratio: 0.06
• Operating Cash Flow (H1FY26): ₹1,396 crore
• Strong liquidity supports ongoing expansion without heavy borrowing.

DMart’s capital-light model allows it to self-fund growth while maintaining financial flexibility.

Outlook: Long-Term Growth Story Intact

Despite modest pressure on margins, DMart’s fundamentals remain strong. The focus on value pricing, efficient operations, and expansion continues to deliver steady results.

With festive demand ahead and a growing store network, the DMart Q2FY26 Results underlines the company’s consistency and customer trust.

In short: DMart is playing the long game — focusing on scale, efficiency, and delivering value to every Indian household.

Quick Takeaways

• Double-digit revenue growth (15.4% YoY)
• Strong operational expansion (432 stores)
• Margins slightly lower, but steady cash flow
• Focused on long-term, customer-first growth