Avenue Super. Q2 FY27 Results (NSE: DMART)
Signal: Steady quarter
The read
The trajectory is mixed: revenue growth accelerated to +17.8% YoY from +14.9% in Q1FY27, but operating margin contracted to 7.09% from 7.98% sequentially and PAT growth slowed to +8.5%; the key inflection is renewed margin pressure alongside rising finance costs and subsidiary losses.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹19,644.01 Cr | +17.8% | +4.5% |
| Net profit | ₹742.98 Cr | +8.5% | |
| EPS | ₹11.4 | +8.3% | |
| EBIT margin | 7.09% |
P&L walk
Revenue accelerated to ₹19,644.01 crore, +17.8% YoY, but EBITDA margin contracted to 7.09% from 7.28%; finance cost rose 82.8% and PAT growth slowed to 8.5% at ₹742.98 crore.
Segments
There is no reported segment table, but subsidiaries dragged the group: consolidated PAT of ₹742.98 crore was ₹60.62 crore below standalone PAT of ₹803.60 crore, with one subsidiary reporting ₹971.23 crore revenue and a ₹75.35 crore quarterly loss.
Key positives
- Consolidated revenue increased 17.8% YoY to ₹19,644.01 crore, accelerating from 14.9% YoY in Q1FY27.
- Standalone revenue grew 18.4% YoY to ₹19,206.18 crore, indicating the core offline retail business remained ahead of the consolidated growth rate.
- PPE and CWIP increased to ₹18,932.95 crore and ₹1,624.28 crore respectively, supporting continued store and capacity expansion.
- PAT-to-EPS conversion remained aligned, with PAT growth of 8.5% and EPS growth of 8.3%.
Key concerns
- Consolidated operating margin fell 19bps YoY to 7.09% and 89bps QoQ from 7.98%, reversing the prior quarter's stable margin trajectory.
- Finance costs rose 82.8% YoY to ₹63.90 crore, while consolidated interest coverage fell to 17.85 times from 36.71 times a year earlier.
- A subsidiary reported a ₹75.35 crore quarterly loss on ₹971.23 crore revenue, leaving consolidated PAT ₹60.62 crore below standalone PAT.
- PAT growth of 8.5% materially lagged revenue growth of 17.8%, showing weak earnings conversion despite strong topline growth.
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