Avenue Supermarts Ltd Q2FY26 FY25-26 — ₹16,676 Cr Sales, ₹685 Cr PAT & A P/E That Defies Newton’s Laws of Gravity
1. At a Glance
Welcome to the Indian retail temple where inflation trembles and middle-class wallets come to pray — Avenue Supermarts Ltd, better known as DMart, the only store where both aunties and analysts fight for the same “value pack.”
As of Q2FY26, DMart clocked a consolidated revenue of ₹16,676 crore, up 15.4% YoY, and a PAT of ₹685 crore, growing a modest 3.9% YoY. The market, however, continues to value this retail messiah like it’s selling teleportation devices — at a P/E of 103x, market cap ₹2.81 lakh crore, and price ₹4,320 per share.
In six months, the stock returned around +7.7%, while profits rose slower than Maggi noodles in cold water. The company’s ROCE stands at 18%, ROE at 13.4%, Debt-to-Equity at 0.04, and Operating Margin at 7.3% — numbers that scream “efficient but expensive.”
Oh, and if you’re waiting for a dividend — don’t. DMart’s payout policy is “Retail Therapy Only.”
2. Introduction
Back in 2002, while the rest of India was buying Nokia phones and Orkut scraps, Radhakishan Damani quietly opened a grocery store in Powai. Today, that little shop has evolved into a ₹2.8 lakh crore empire that sells everything from atta to air fresheners — but not hope for cheaper valuations.
DMart has become the benchmark of Indian retail efficiency — no flashy ads, no deep discounts, just relentless optimization and an army of loyal aunties with trolley-pushing stamina that would shame Olympic athletes.
Yet, FY25 and early FY26 have been… well, realistic. After years of double-digit euphoria, the company’s margins have plateaued like your gym progress after January. The new CEO Anshul Asawa replaced Neville Noronha in early 2025, marking the end of an era and the start of cautious evolution — including e-commerce experiments, energy acquisitions, and GST notices that could fill a novel.
DMart is India’s most efficient retailer — but it’s also India’s most over-worshipped one. The paradox? It sells “everyday low prices” while trading at “once-in-a-lifetime high prices.”
3. Business Model — WTF Do They Even Do?
Let’s strip the jargon. DMart buys cheap, stocks fast, and sells slightly cheaper than anyone else. The secret sauce? No middlemen, no franchisees, no nonsense.
Its stores focus on three big buckets:
Foods (56%) – groceries, dairy, veggies, the basics of Indian survival.
Non-Foods (FMCG) (21%) – shampoos, detergents, and existential dread in sachets.
General Merchandise & Apparel (23%) – from plastic buckets to polyester dreams.
DMart owns its stores and land — a strategy that keeps rent low and egos high. It follows a cluster expansion model, meaning it first conquers one state before invading another. As of Nov 2024, it had 383 stores, up from 365 in FY24 and 284 in FY22. Nearly 30% are in Maharashtra, the holy land of margins.
Their mantra: “Everyday Low Cost = Everyday Low Price.” That’s not marketing — that’s religion. They squeeze suppliers, streamline inventory, and move goods faster than inflation can blink.
And for those in the “online only” generation, there’s DMart Ready, the company’s low-drama e-commerce arm, which operates in 23 cities and grew 21.8% in H1FY25. It’s the grocery equivalent of “Netflix buffering” — slow but steady.
4. Financials Overview
Source table
Metric
Latest Qtr (Q2FY26)
YoY Qtr (Q2FY25)
Prev Qtr (Q1FY26)
YoY %
QoQ %
Revenue (₹ Cr)
16,676
14,444
16,360
15.4%
1.9%
EBITDA (₹ Cr)
1,214
1,094
1,299
11.0%
-6.5%
PAT (₹ Cr)
685
659
773
3.9%
-11.4%
EPS (₹)
10.5
10.1
11.9
3.9%
-11.8%
Annualised EPS = ₹42.0 → P/E = 4,320 / 42 = 103x.
That’s right — the company makes ₹1, but trades at ₹103 for it. Somewhere, Benjamin Graham just fainted.
Margins remain steady at ~7%, proving DMart isn’t losing the retail war, just fighting it with stricter diet plans.
5. Valuation Discussion – Fair Value Range Only
Let’s calculate like bored auditors:
a) P/E Method
EPS (annualised): ₹42
Fair multiple range: 60x–80x (assuming normal retail efficiency)
