DMart Q1 Profit Rises 12.8% to Rs 936 Crore as Board Approves Rs 1,000 Crore NCD Issue
Avenue Supermarts, which runs the DMart chain, reported a 12.8 percent rise in standalone profit for the June quarter and approved raising up to Rs 1,000 crore through debentures, even as same-store sales growth slowed.
What DMart's Q1 FY27 Results Changed
Avenue Supermarts, which operates the DMart supermarket chain, reported standalone profit after tax of Rs 936 crore for the quarter ended June 2026, up 12.8 percent from a year earlier. Revenue grew 15.1 percent to Rs 18,343 crore, EBITDA rose 16.3 percent to Rs 1,527 crore, and the EBITDA margin edged up to 8.3 percent from 8.2 percent. Earnings per share rose to Rs 14.35 from Rs 12.75. Alongside the results, the board approved raising up to Rs 1,000 crore through non-convertible debentures in one or more tranches, though the company has not disclosed how it plans to use the proceeds.
Why Avenue Supermarts Stock Is in Focus
The headline growth numbers are solid, but the detail that stands out is same-store sales growth, which measures sales at stores open for more than two years and strips out the effect of new store openings. That figure moderated to 5.5 percent from 7.1 percent a year earlier, according to the company's own management commentary. A slowing same-store number while overall revenue keeps growing at double digits suggests DMart's topline is increasingly being carried by new store additions rather than by more spending at existing stores, a distinction that matters for judging the underlying health of the business.
Which Stocks, and Why
The impact is direct to Avenue Supermarts. The profit and revenue growth are genuinely positive for the quarter, but the same-store deceleration is a real signal that DMart's traditional value-retail model is facing more competition than before, most visibly from quick-commerce platforms that have changed how urban shoppers buy groceries. The Rs 1,000 crore debt raise, with no stated use of proceeds, adds a small question mark, since large retailers typically borrow either to fund store expansion or to manage working capital, and investors will want clarity on which it is.
What to Watch
The trend to track over the next few quarters is whether same-store sales growth stabilises or keeps slowing, since that is the cleaner read on organic demand than headline revenue. Also worth watching is any disclosure on how DMart plans to use the new debentures, and whether the company outlines a more specific response to quick-commerce competition in its upcoming earnings commentary.
Frequently asked questions
How much did DMart's profit grow in the June 2026 quarter?
Standalone profit after tax rose 12.8 percent year on year to Rs 936 crore.
What is same-store sales growth and why did it matter this quarter?
It measures sales growth at stores open more than two years, stripping out new store openings. It slowed to 5.5 percent from 7.1 percent a year earlier, signalling softer growth at DMart's existing stores.
Why is DMart raising Rs 1,000 crore through debentures?
The board approved raising up to Rs 1,000 crore through non-convertible debentures but has not disclosed the intended use of the proceeds.
Informational only, not investment advice. Sentiment reflects news exposure, not a buy/sell recommendation or price forecast. Do your own research and consult a licensed professional.
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