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DMart Q1FY26 Results: Revenue Up 16.2% But Profit Growth Muted

Written by: Team Angel OneUpdated on: 12 Jul 2025, 3:29 pm IST
DMart Q1FY26 results show 16.2% revenue growth to ₹15,932 crore while profit edges up 2.1% amid margin pressure and higher operational costs.
DMart Q1FY26 Results: Revenue Up 16.2% But Profit Growth Muted
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India’s leading supermarket chain, Avenue Supermarts Limited, which operates the popular DMart retail stores, has released its financial results for the quarter ended 30 June 2025. 

The results reflect strong topline growth, but also reveal the challenges of maintaining margins in a competitive environment. Here is a detailed look into the company’s Q1FY26 performance, as shared in the revised press release.

DMart Q1FY26 Results

For the first quarter of the financial year 2025–26, DMart reported standalone revenue of ₹15,932 crore, marking a 16.2% rise over the same period last year. The revenue growth reflects healthy demand and the addition of new stores, with nine stores opened during the quarter, taking the total count to 424.

On a consolidated basis, total revenue stood at ₹16,360 crore, up from ₹14,069 crore in Q1FY25.

Net Profit Growth Slows Despite Higher Sales

While revenue surged, profit growth was relatively modest. Standalone profit after tax (PAT) for Q1FY26 was ₹830 crore, up just 2.1% from ₹812 crore a year ago. PAT margin dropped to 5.2%, down from 5.9% in Q1FY25.

On a consolidated level, PAT was ₹773 crore, almost flat compared to ₹774 crore last year, with PAT margin decreasing to 4.7% from 5.5%.

Margins Under Pressure Due To Deflation And Costs

The EBITDA for the quarter stood at ₹1,313 crore on a standalone basis, growing 7.6% year on year. However, the EBITDA margin contracted to 8.2% from 8.9% last year. Consolidated EBITDA was ₹1,299 crore with a margin of 7.9%, down from 8.7%.

The company cited deflation in staple and non-food products, along with increased competition in the FMCG space, as reasons for lower gross margins. Additionally, operating costs were higher due to investments in service improvements, capacity expansion, and inflationary pressure on entry-level wages.

Store Network Expands To 424 Locations

DMart continues its pan-India growth, with the addition of nine new stores during the quarter. As of 30 June 2025, the company had 424 operational stores spread across states, including Maharashtra, Gujarat, Karnataka, Telangana, Tamil Nadu, and others. The retail business area now spans 17.6 million square feet.

2-year-old and older stores recorded a 7.1% growth compared to the same quarter last year, indicating stable consumer traction at mature locations.

DMart’s Operating Strategy Remains Focused On Value

DMart follows its EDLC-EDLP model – Everyday Low Cost and Everyday Low Price, which emphasises procuring products at competitive prices and offering value to customers. The strategy continues to guide its operations and expansion, even as it navigates short-term margin pressures.

Read More: Avenue Supermarts Expands E-Commerce Presence with ₹175 Crore Infusion in DMart Ready!

Conclusion 

The Q1FY26 results highlight DMart’s continued revenue growth amidst a challenging retail environment. Margin pressures reflect broader market dynamics and operational investments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Jul 12, 2025, 9:59 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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