Shares of Avenue Supermarts Ltd, operator of the DMart retail chain, slipped 1 percent to Rs 4,275 in early trade on Monday following its Q2 FY26 earnings that drew mixed reactions from brokerages. While analysts pointed to stabilising gross margins, they flagged concerns over rising operating expenses, slower same-store growth, and the scaling back of its online arm DMart Ready.
The company reported a 3.8 percent YoY rise in consolidated net profit to Rs 684.85 crore, as higher employee and finance costs weighed on margins. Revenue from operations rose 15.4 percent to Rs 16,676 crore, while EBITDA margins contracted to 7.28 percent from 7.57 percent a year earlier.
Store expansion gained traction with eight new outlets added during the quarter, taking the total store count to 432. Like-for-like growth for stores older than two years stood at 6.8 percent.
Meanwhile, DMart Ready, the company’s e-commerce venture, exited five cities and now operates across 19 locations in India.
