DMart FY26 growth steady, e-commerce weighs on margins

BENGALURU: Avenue Supermarts Ltd, operator of DMart, on Friday reported steady double-digit growth in FY26 even as increasing competition from flash commerce platforms continues to put pressure on margins in its e-commerce business.

The Mumbai-based company reported the following revenue: ₹17,204.50 crore in the January-March quarter, up 18.96% year on year, while net profit increased by 16.9%. ₹724.60 crore.

Revenue increased 15.8% for FY26 ₹66,968.03 crore while net profit was 66,968.03 crore ₹3,223.93 crore.

“Geopolitical tensions led to a slight increase in consumer purchases in March 2026, which normalized towards the end of the month. Our business has not witnessed any supply chain disruption on a major scale so far,” said Ansul Asawa, Chief Executive Officer, Avenue Supermarts.

The retailer added 58 stores during the quarter, bringing its total store count to 500, as it accelerates expansion to sustain growth amid increasing competitive intensity and deepen its presence beyond metro markets.

Same-store sales growth increased to 10.8% this quarter from 8.1% in the same period last year.

Foods remained the largest contributor to revenue in FY26 with a share of 57.9%, followed by general merchandise and ready-made garments with 22.28%, while non-food FMCG accounted for 19.82% of sales.

“Our DMart Ready business continues to focus on key metro cities. We have further rationalized our delivery channels by refocusing on home delivery as the preferred channel. We discontinued our operations in a single city this quarter. We are operating in 18 cities as of March 31, 2026,” said Vikram Dasu, full-time director and CEO of Avenue E-Commerce.

DMart Ready, the retailer’s online grocery platform offering home delivery and order-pickup services, is recalibrating its strategy as competition from fast-paced commerce players intensifies, exodus from cities and focus shifts to metro markets and home delivery.

Sandeep Abhange, Consumer and Midcaps research analyst at LKP Securities, said revenue growth was broadly in line with expectations but margins remained under pressure as losses in the e-commerce business continued to weigh on consolidated performance.

While DMart continues to grow revenue, margin compression reflects a lack of operating leverage and the online business widens the gap between standalone and consolidated profitability, Abhange said.

“The key issue for FY27 will be whether consolidated margins start converging with standalone margins. Until the online business stops being a drag, pressure on DMart’s premium valuation may continue,” he added.