Avenue Supermarts, the parent company of DMart, has overhauled its ecommerce strategy and has shut operations in several cities that did not contribute much to the group’s results. The company is focusing on the larger metropolitan areas.
“We continue to deepen our focus in large metro cities while improving our model. During the quarter, we have discontinued our operations in seven cities which were marginal contributors. As of 30 June 2026, we operate in 11 cities,” Vikram Dasu, Whole Time Director and Chief Executive Officer (CEO), Avenue Ecommerce, said in an exchange filing by the company.
The company said that it follows an Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive prices, using operational and distribution efficiency. The total consolidated revenue for the quarter ended 30 June 2026 stood at Rs 18,795 crore, as compared to Rs 16,360 crore in the same period last year.
Earnings before Interest, Tax, Depreciation and Amortisation (Ebitda) in Q1FY27 stood at Rs 1,499 crore, as compared to Rs 1,299 crore in the corresponding quarter of last year. Ebitda margin stood at 8 per cent in Q1FY27 as compared to 7.9 per cent in Q1FY26.
Net Profit And Non-metro Performance
Net profit stood at Rs 860 crore for Q1FY27, as compared to Rs.773 crore in the corresponding quarter of last year. Net profit margin stood at 4.6 per cent in Q1FY27 as compared to 4.7 per cent in Q1FY26. Basic Earnings per share (EPS) for Q1FY27 stood at Rs 13.20, as compared to Rs 11.88 for Q1FY26.
“Two years and older DMart stores grew by 5.5 per cent during Q1FY27 as compared to 7.1 per cent in Q1 FY26. In large metros, growth in older stores, which have significantly higher revenue per square foot, was flat this quarter. While stores in non-metros continue to grow well,” said Anshul Asawa, Managing Director and CEO, Avenue Supermarts. |
