Avenue Supermarts Ltd., the parent company of DMart, delivered a robust performance in the second quarter of fiscal year 2026 (July-September 2025), reinforcing its position as a leading player in India’s retail sector. The company reported a 4% year-on-year increase in consolidated net profit, reaching Rs 685.01 crore, up from Rs 659.58 crore in Q2 FY25. Revenue from operations surged 15.5% to Rs 16,676.30 crore, compared to Rs 14,444.50 crore in the same period last year, driven by strong consumer demand and strategic expansion.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 11% to Rs 1,213.65 crore from Rs 1,093.72 crore, though EBITDA margins slightly contracted from 7.6% to 7.3%, reflecting higher operational costs. Other expenses increased to Rs 922.80 crore, contributing to the margin squeeze. On a standalone basis, revenue from operations grew 15.4% to Rs 16,218.80 crore, maintaining consistent growth for the second consecutive quarter.

A key highlight of the quarter was the addition of eight new stores, bringing the total store count to 432 as of September 30, 2025, up from 424 at the end of Q1 FY26. This expansion underscores Avenue Supermarts’ focus on scaling its footprint to capture growing demand in India’s competitive retail market.

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Analysts remain bullish on the company’s outlook. UBS Global Research recently raised its target price for Avenue Supermarts to Rs 5,600 from Rs 5,050, maintaining a “Buy” rating. The brokerage cited DMart’s “compounding growth story” and favorable risk-reward ratio, projecting a three-year revenue compound annual growth rate (CAGR) of 20%. Despite a recent rise in share price, UBS believes the stock’s valuation remains attractive, with limited risk of significant derating.

As Avenue Supermarts navigates rising competition from e-commerce and quick-commerce players, its value-driven model and steady expansion continue to drive growth. With the festive season underway, DMart is well-positioned to capitalize on increased consumer spending, though investors will monitor its ability to manage costs and maintain margins in the quarters ahead.

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