DMart, operated by Avenue Supermarts, has reported its first-quarter results for fiscal year 2027, revealing steady revenue growth driven by increased footfall. However, rising operational expenses continue to pressure profit margins, reflecting broader challenges faced by the retail sector.
Consolidated revenue for the quarter reached Rs. 18,794.5 crore, a 14.9% increase year-over-year. Total expenses climbed to Rs. 17,637.2 crore from Rs. 15,321.7 crore in the same period last year. The company’s managing director, Anshul Asawa, noted that stores open for two years or more saw same-store sales growth of 5.5% in Q1 FY27, down from 7.1% in Q1 FY26.
Food and grocery items accounted for 54.9% of total revenue, a slight decline from 55.6% a year ago, while general merchandise and apparel contributed 25.5%, up from 24.7%. The results indicate that DMart continues to attract shoppers despite intense competition from online grocery platforms like Zepto and Instamart, as well as traditional retailers.
Higher employee costs, store maintenance expenses, and general inflation are eating into margins. DMart’s strategy of offering low prices makes it difficult to pass on cost increases to customers. The company’s ability to maintain profitability while expanding its store network will be closely watched by investors in the coming quarters.
These results underscore a broader trend in India’s retail market: consumers are spending cautiously, and retailers must balance cost control with competitive pricing in an environment of rising expenses and shifting shopping habits toward online and quick-delivery services.
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