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DMart Shares Fall 3% as Q2 Margin Pressure Overshadows Revenue Growth

Avenue Supermarts reported 17.8% Q2 revenue growth, but EBITDA margin fell to 7%. DMart shares dropped 3% in early trade on October 12, 2026.

Published 12 October 2026TradeGrows Markets Desk

Main source dated 2026-10-12. Research checked through 12 October 2026 at 11:17 am IST. Market observations retain their own dates and units; this is not a live quote feed.

Evidence before inference. A company metric, supervisory opinion, benchmark price and market forecast are not interchangeable. Check the original documents and stated limitations.
Conceptual Indian retail and stock-market illustration with company results and market charts
Original conceptual editorial illustration; not company premises, an official document or a market-data chart.

Avenue Supermarts, the operator of DMart, came under pressure in early trading on October 12 after its September-quarter results showed stronger sales but weaker operating profitability. Moneycontrol reported that the shares fell 3% to around ₹3,411 in early trade. It said consolidated Q2 FY27 revenue rose 17.8% year on year to ₹19,644 crore, while net profit increased 8.5% to ₹743.5 crore. EBITDA rose 15% to ₹1,394 crore, but the EBITDA margin declined to 7% from 7.3% a year earlier.

The company added 15 stores during the quarter, taking its network to 518 outlets, and like-for-like growth improved to 9.5%. CNBC-TV18 reported the same core results and said the company had added 18 stores in the first half of FY27. It reported that Avenue Supermarts shares closed at ₹3,516.80 on October 9, down 1.90% before the results were fully reflected in the next session.

The immediate market reaction illustrates why revenue growth and profit quality can produce different share-price responses. Brokerages cited by Moneycontrol differed on the outlook, so their targets and ratings should be treated as attributed opinions rather than objective outcomes.

Key facts

  • Q2 FY27 consolidated revenue: ₹19,644 crore, up 17.8%.
  • Consolidated net profit: ₹743.5 crore, up 8.5%.
  • EBITDA: ₹1,394 crore, up 15%.
  • EBITDA margin: 7%, versus 7.3% a year earlier.
  • Like-for-like growth: 9.5%.
  • Store additions: 15; total network: 518.
  • Early October 12 share move reported by Moneycontrol: down 3%, around ₹3,411.

Why it matters

For retail-sector analysis, the result puts store expansion, like-for-like growth, gross margin, wage costs and quick-commerce competition in the same frame. A company can grow sales while its margins and cash-generation indicators require closer review. The result is therefore relevant to traders tracking earnings reactions and to readers learning how to read a listed-company filing.

Revenue growth and margins answer different questions. Our guide to reading Indian listed-company filings explains how to check the period, basis and units before comparing results. Visit Indian stock coverage for related news.

Sources

Moneycontrol’s October 12 DMart share reaction (opens in a new tab); CNBC-TV18’s October 10 Q2 results report (opens in a new tab).

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