NEW DELHI (India CSR): Avenue Supermarts Ltd, the operator of D-Mart, reported a strong performance in the second quarter (Q2) of FY2025-26. The company’s standalone revenue rose 15.43% year-on-year to Rs 16,218.79 crore, compared to Rs 14,050.32 crore in the same quarter last year. This growth highlights the retailer’s continued ability to attract customers with its value-focused model, despite inflationary pressures and rising competition.
As of September 30, 2025, Avenue Supermarts operated 432 stores across India, including one in Sanpada, Navi Mumbai, currently under reconstruction. The update provided topline and operational details but withheld profitability and margin figures, which will be released in the full results.
Investor sentiment was mildly positive, with DMART shares closing 1.2% higher at Rs 4,212 on the NSE following the update. The company’s strong revenue momentum sets the stage for the upcoming festive quarter.
Revenue Performance: A Strong 15.4% Year-on-Year Growth
Avenue Supermarts reported standalone revenue of Rs 16,218.79 crore in Q2 FY26 (July–September 2025). This represents a 15.43% year-on-year (YoY) increase, compared to Rs 14,050.32 crore reported in the same quarter of FY25.
The sequential rise in revenues highlights steady consumer footfall in urban and semi-urban markets, even amid inflationary pressures. While discretionary spending remains under watch, D-Mart continues to benefit from its value-for-money positioning, bulk-selling model, and high consumer trust in essentials retailing.
Historical Comparison of Q2 Standalone Revenues
| Quarter Ended September 30 | Revenue (₹ Crore) |
|---|---|
| Q2 FY26 (2025) | 16,218.79 |
| Q2 FY25 (2024) | 14,050.32 |
| Q2 FY24 (2023) | 12,307.72 |
| Q2 FY23 (2022) | 10,384.66 |
The data shows D-Mart has added nearly Rs 6,000 crore in quarterly revenues in just three years, underscoring consistent expansion and consumer loyalty.
Operational Footprint: 432 Stores
The company reported a total store count of 432 as of September 30, 2025. This includes one temporarily closed store in Sanpada, Navi Mumbai, currently under reconstruction.
While Avenue Supermarts has not detailed new store openings or closures during the quarter in this preliminary update, the steady expansion over the past years reflects management’s long-term focus on Tier-II and Tier-III markets. D-Mart’s cluster-based approach—where stores are built within logistics-friendly zones—continues to optimize supply chain efficiencies and lower distribution costs.
Sequential Comparison: Awaiting Deeper Insights
The Q2 update focuses primarily on YoY growth but does not disclose quarter-on-quarter (QoQ) revenue movement from Q1 FY26. For context, Avenue Supermarts had reported standalone revenue of Rs 12,739.29 crore in Q1 FY26, indicating a sequential growth of nearly 27% quarter-on-quarter.
Such seasonal spikes are typical for Q2, coinciding with India’s festive season build-up and higher consumer demand for food staples, garments, and home essentials.
Investors will await the detailed financial results to assess profitability, EBITDA margins, and whether inflationary pressures or pricing actions had any impact on operating performance.
Market Reaction: Share Price Moves
On October 3, 2025, following the revenue update, shares of Avenue Supermarts opened firm but traded with volatility. Initial optimism around the double-digit revenue growth saw buying interest, but analysts flagged the absence of profitability details as a factor limiting strong upward movement.
At close, DMART stock ended at Rs 4,212 on the NSE, up 1.2% from the previous session. Brokerages noted that the ~15% YoY growth was broadly in line with consensus estimates, keeping valuations stable in the near term.
Market experts believe the share price will hinge on the forthcoming Q2 results, particularly gross margin performance amid rising input costs and competitive discounting from e-commerce and modern trade rivals.
What Analysts Are Watching
Market participants are closely monitoring:
- Same-Store Sales Growth (SSSG): A critical metric for gauging organic performance of older stores versus growth driven by new additions.
- Operating Margins: Given rising inflation in FMCG and apparel categories, margins are under pressure industry-wide.
- Expansion Strategy: D-Mart’s ability to sustain 40–50 new store additions annually will shape its medium-term revenue trajectory.
- Digital Strategy: D-Mart Ready, the company’s e-commerce venture, remains a small contributor. Analysts expect clarity on digital penetration in upcoming detailed results.
Industry Context: Retail Demand Amid Inflation
The broader Indian retail sector has experienced resilient demand despite price inflation, with strong traction in essentials and food categories. Organised retailers like Avenue Supermarts benefit from economies of scale, direct procurement from manufacturers, and deep discounting strategies, enabling them to remain competitive against both local kirana stores and online retail giants.
D-Mart’s consistent double-digit revenue growth places it among the top-performing retail players in India, even as peers experiment with omni-channel strategies and partnerships to defend market share.
Outlook: Growth Momentum to Continue
With the festive season (October–December) ahead, Avenue Supermarts is expected to sustain revenue momentum into Q3 FY26. Analysts forecast 20–22% growth for the festive quarter, provided consumer sentiment remains strong and supply chains are smooth.
The company’s cluster-based expansion model and its careful management of working capital continue to be its biggest strengths. However, rising competition from Reliance Retail, Amazon Fresh, and Tata’s Star Bazaar could intensify price pressures in the urban markets.
For investors, the key will be whether D-Mart can translate topline growth into margin expansion—a determinant for future valuations in India’s booming retail space.
You Learn
Avenue Supermarts Ltd (D-Mart) delivered another robust quarter with Rs 16,218.79 crore in standalone revenue and a store footprint of 432 outlets. The 15.43% YoY growth demonstrates strong consumer traction and operational resilience.
While the update confirms healthy topline momentum, details on profitability, EBITDA, and net earnings remain pending, making the upcoming full financial results crucial for investors. The stock’s modest positive reaction signals market confidence in continued expansion but also caution around margin dynamics.
As India’s organised retail sector accelerates, Avenue Supermarts remains a bellwether for consumption trends, offering investors and analysts valuable insight into the health of India’s middle-class spending power.
Frequently Asked Questions (FAQs) Regarding D-Mart’s Q2 FY26 Update
1. What was Avenue Supermarts Ltd’s standalone revenue from operations for the second quarter (Q2) of FY 2025-26?
The Standalone Revenue from operations for the quarter ended September 30, 2025, stood at INR 16,218.79 crores.
2. What was the total number of stores operated by D-Mart at the end of Q2 FY26?
As of September 30, 2025, the total number of stores stood at 432.
3. Did the reported standalone revenue undergo a full audit?
No, the Standalone Revenue from operations for the quarter ended September 30, 2025, is currently subject only to limited review by the Statutory Auditors of the Company.
4. Is the entire store count fully accessible to customers?
No, the total count of 432 stores includes one store at Sanpada, Navi Mumbai, Maharashtra, which is currently closed for customers due to reconstruction.
(India CSR)
