DMart Q2 Results 2026: Profit Rises 8.5% to ₹743 Crore but Margins Slip, Stock Falls 4%

The DMart Q2 results 2026 were a familiar story: sales kept growing, margins got thinner, and the market didn’t like it. Avenue Supermarts, the company behind the DMart chain, posted an 8.5% year-on-year rise in consolidated net profit to ₹743 crore for the September quarter (Q2 FY27), ET Markets reported. The shares slid about 4% on Monday, October 12, to ₹3,384, as per Mint.

DMart Q2 results 2026: the consolidated numbers

• Revenue: ₹19,644 crore, up 17.8% from ₹16,676 crore
• Net profit: ₹743 crore, up 8.5% from ₹685 crore
• EBITDA: ₹1,393 crore, up 14.7% from ₹1,214 crore
• EBITDA margin: 7.1%, against 7.3% a year ago
• PAT margin: 3.8%, against 4.1%
• EPS: ₹11.40, up 8.3%
• Stores: 15 added during the quarter, for a total of 518

Source: ET Markets. Profit grew at roughly half the pace of revenue. That’s the problem in one line.

The standalone business was squeezed harder

On a standalone basis, Mint said, it was tighter still. EBITDA margin came in at 7.3%, down 102 basis points from the previous quarter and 28 basis points from a year earlier. That missed expectations. Gross margin also slipped 10 basis points, to 14.15%.

Capital Market put standalone profit after tax at ₹803.60 crore. That’s up 7.64% on the year but down 14.12% on the quarter. Revenue from operations climbed 18.42% to ₹19,206.18 crore.

What ate into the margins

• Wages: MD and CEO Anshul Asawa said entry-level wage inflation “has led to a marginal increase in operating expenses” (ET Markets).
• Stores earning less: Jefferies said EBITDA per store and per square foot dropped about 4% year-on-year, the weakest in several quarters (Mint).
• Quick commerce: Mint flagged the growing pressure from quick-commerce apps.
• Low prices by choice: DMart is holding prices down even as costs rise. Shoppers win, margins don’t.

How analysts reacted

Jefferies trimmed its EPS estimates by 2-3% and cut its price target to ₹4,000, Mint reported, adding that some other analysts have also pared their FY27 and FY28 numbers. Monday’s drop came on top of a 7.8% fall in the stock the week before.

What it means for investors

The growth engine is fine. Revenue is rising in the high teens and new stores keep opening. Profitability is the worry. If costs and competition keep pressing on margins, earnings will keep trailing sales.

Spotting that kind of gap between revenue and profit growth is exactly what our guide on how to analyse quarterly results walks you through. For the margin arithmetic, read what EBITDA margin means, and for how the wider market did on Monday, head to the Stock Market Today India hub.

Sources: ET Markets (Oct 10, 2026); Mint (Oct 12, 2026); Capital Market (Oct 12, 2026).