Avenue Supermarts Limited (DMART) Q2 Results FY27 Preview: Date, Time, Expectations & Key Things To Watch

Avenue Supermarts (DMart) runs its everyday-low-price grocery and general merchandise retail chain across India, and the quarter's big question is whether same-store growth can hold up as food inflation accelerates and quick-commerce platforms capture smaller baskets. The print will speak to the LFL growth trajectory and store-opening pace against management's ~15%-of-base annual benchmark, alongside whether gross margin stays inside the 14-15% band as input costs rise.

Avenue Supermarts Limited Q2 Results Date and Time

Avenue Supermarts Limited is scheduled to announce its Q2 FY 2026-2027 results on October 10, 2026, with the board meeting intimated to the BSE and NSE for consideration of the audited financial results for the quarter.

What to expect from Avenue Supermarts Limited's Q2 FY27 results

The key test this quarter is whether LFL growth stabilises after the FY26 trajectory slid from 7.1% to 6.8% to 5.6% across Q1-Q3 FY26, with management having guided LFL 'closer to the prior financial year's performance' (FY26 annual: 8.1%) and flagged older-store growth would hold 'barring inflation changes' — a caveat that materialised as consumer food inflation accelerated from 5.32% YoY in June to 5.95% in August. Q1 FY27 revenue grew 15.14% YoY to Rs. 18,343.5 Cr with EBITDA margin at 8.32%, but store additions were only 3 net against the ~15%-of-base annual benchmark, making Q2's opening count a direct read on the revenue trajectory. Cost lines remain the margin swing factor: employee costs rose 31.57% YoY in Q1 following the wage-code step-up, finance costs doubled YoY as borrowings reached Rs. 2,425.0 Cr at March 2026, and DMart Ready posted a Rs. 91.3 Cr loss as management works to prove sustainability in 11 cities. Gross margin at 15.10% in Q1 sits inside the 14-15% 'North Star' band, and with foods at 57.90% of the category mix, whether DMart absorbs or passes through supplier price increases will shape the Q2 margin bridge. The call is likely to cover the LFL print, store additions, the gross-margin bridge, DMart Ready losses and the employee-cost growth rate.

Key Things To Watch

LFL growth trajectory: Same-store growth is the single most important number in the print.

• Q2 FY26 LFL was 6.8% and Q3 FY26 was 5.6%; the question is whether Q2 FY27 decelerates further or stabilises
• Management guided LFL 'closer to the prior financial year's performance' (FY26 annual: 8.1%), with older-store growth around current levels 'barring inflation changes'
• Food inflation accelerated through the quarter — CFPI 5.32% YoY in June, 5.52% in July and 5.95% in August

Store additions vs the 15%-of-base annual benchmark

• Only 3 net new stores were added in Q1 FY27 against roughly 19 per quarter needed to meet the ~15%-of-base annual benchmark (~75 stores a year)
• A Q2 figure below ~15 would mark a second consecutive quarter of slow openings, directly affecting the new-store contribution to revenue
• Management cites land acquisition, documentation, landlord willingness, regulatory requirements and construction time as constraints, with a usual two-to-three-year path from land acquisition to store opening

Gross margin and food-inflation pass-through

• Q1 FY27 implied gross margin was 15.10%, inside the 14-15% 'North Star' guidance band
• Foods are 57.90% of the category mix, so the rising CFPI trajectory raises procurement costs; commentary on whether DMart absorbed or passed through increases is key
• Inventory of Rs. 5,900.6 Cr (~37 days of FY26 COGS) provides a modest buffer of pre-inflation purchases sold into a higher-priced environment

DMart Ready losses and city strategy

• DMart Ready posted a Rs. 91.3 Cr loss in Q1 FY27; management is focused on reducing losses and proving sustainability and profitability in 11 cities
• The business was scaled back from 7 cities in the June quarter, with a six-hour slotted delivery model retained and no pursuit of faster-delivery formats

Employee and finance cost growth

• Employee costs rose 31.57% YoY in Q1 FY27, partly on wage-code implementation; whether this moderates is the swing factor between flattish and compressed operating margins
• Finance costs doubled YoY in Q1 as total borrowings rose from Rs. 1,609.2 Cr a year earlier to Rs. 2,425.0 Cr at March 2026, reflecting NCD drawdown for capex
• FY26 capex was described as upwards of Rs. 4,000 Cr, with the NCD route intended to support capex and borrowing-cost flexibility