DMart Sales Slow as Competition Heats Up

Avenue Supermarts, operating the DMart retail chain, commenced the first quarter of FY27 with a notable slowdown in sales from its established stores. Revenue saw a 14.9% year-on-year increase, reaching ₹18,794.5 crore. However, a corresponding rise in operating expenses limited profit growth, with consolidated net profit up 11.3% to ₹860.4 crore.

Growth in DMart stores open for two years or more decelerated to 5.5% in Q1 FY27, down from 7.1% in the prior year. This moderation is particularly evident in large metropolitan areas where growth remained flat, while stores in smaller cities continue to perform well. The company attributes this to heightened competition from quick commerce players like Blinkit and Swiggy Instamart, which are impacting grocery and household essential sales.

DMart expanded its network by three stores during the quarter, bringing its total to 503 across India. Food and grocery products remained the largest revenue contributor at 54.9%, though general merchandise and apparel saw a slight increase in their share. The retailer has also undergone senior leadership changes, with Anshul Asawa taking over as managing director and CEO, signaling a strategic realignment for future growth amidst a competitive landscape.