DMart's Profit Jumps 31% on Stronger Sales Momentum
Avenue Supermarts posted solid revenue growth and a sharp sequential profit recovery, though margins remain under slight pressure.
DMart's Q1 FY27 revenue rose 14.9% year-on-year, while profit rebounded 31.1% from the previous quarter. The net profit margin, however, dipped slightly compared to last year.
Avenue Supermarts (DMart) delivered a quarter of solid top-line growth and a sharp rebound in bottom-line performance. Revenue for Q1 FY27 grew nearly 15% from a year ago, while profit surged over 31% from the preceding quarter, signaling a recovery from a softer Q4.
This performance shows healthy sales momentum, but profitability remains a nuanced story. While profit grew year-on-year, it did so at a slower pace than revenue, leading to a slight 10-basis-point contraction in the net profit margin to 4.6%. The table below illustrates the recent quarterly trajectory.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 18,794.53YoY +15% | 17,683.86 | 16,359.70 |
| Profit (₹ Cr) | 860.44YoY +11% | 656.42 | 772.81 |
| Net Profit Margin | 4.6%YoY -2.1% | 3.7% | 4.7% |
Note: Net profit margin data is not available for Q3 FY26 and Q2 FY26 in the provided series.
The company's trailing-twelve-month (TTM) net profit margin stands at 4.3%, slightly below the latest quarter's figure. This suggests the recent margin, while down year-on-year, represents an improvement from the broader TTM average.
Key Points
- Balance Sheet Strength: The company maintains a robust financial position with minimal debt (Debt-to-Equity of 0.04) and strong interest coverage of nearly 30 times.
- Stock Performance: Over the past year, the stock price has declined 6.8%, contrasting with the quarter's operational improvement.
- Valuation Context: DMart trades at a P/E of 86.9, a 23% premium to its industry, reflecting high expectations for its growth model.
The key question for the next quarter is whether DMart can sustain this profit recovery and begin to expand its net profit margin back toward historical levels.
Live Chart
· DMART
(BSE)
ISIN: INE192R01011
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