DMart Reports Steady Growth Amid E-Commerce Margin Pressures
DMart FY26 growth steady, e-commerce weighs on margins
MintImage: Mint
Avenue Supermarts Ltd, operator of DMart, reported a revenue increase of 18.96% to ₹17,204.50 crore in Q4 FY26, with a net profit of ₹724.60 crore. Despite steady growth, e-commerce competition is impacting margins, leading to ongoing challenges for the retailer's profitability.
- 01DMart's Q4 FY26 revenue rose by 18.96% year-on-year.
- 02Net profit for the quarter increased by 16.9% to ₹724.60 crore.
- 03The company added 58 stores, bringing its total to 500.
- 04Same-store sales growth improved to 10.8% from 8.1% last year.
- 05E-commerce losses are impacting overall margins and profitability.
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Avenue Supermarts Ltd, the operator of DMart, reported robust growth for the fourth quarter of FY26, with revenues reaching ₹17,204.50 crore, marking an 18.96% increase year-on-year. The company's net profit also saw a rise of 16.9%, totaling ₹724.60 crore. For the entire fiscal year, DMart's revenue grew by 15.8% to ₹66,968.03 crore, while net profit stood at ₹3,223.93 crore. Despite these positive figures, the company faces challenges in its e-commerce segment due to heightened competition from quick-commerce platforms, which are exerting pressure on profit margins. Chief Executive Ansul Asawa noted that geopolitical tensions had temporarily spiked consumer buying in March, although the situation normalized later. DMart expanded its footprint by opening 58 new stores, increasing its total to 500, as it aims to penetrate beyond metro markets. Same-store sales growth improved to 10.8%, up from 8.1% in the previous year. The company's online grocery platform, DMart Ready, is recalibrating its strategy, focusing on metro towns and home delivery, while exiting less profitable markets. Analysts suggest that while revenue growth aligns with expectations, the ongoing losses in e-commerce could continue to pressure DMart's overall margins and valuation.
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The ongoing pressure on DMart's margins could affect pricing strategies and product availability for consumers, particularly in the grocery segment.
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