Avenue Supermarts, operator of DMart, will raise ₹1,000 crore via non-convertible debentures following a 12.8% jump in June quarter profit. The retail giant reported revenue of ₹18,343 crore, though growth in established stores slowed in metro regions.
Avenue Supermarts Ltd, the company behind the DMart supermarket chain, has announced a fundraising plan of up to ₹1,000 crore through the issuance of non-convertible debentures. These debt instruments will be issued in tranches via private placement. The company has not yet provided specific details regarding how these funds will be deployed, leaving investors to monitor whether the capital is intended for new store expansion, supply chain infrastructure, or general corporate purposes.
Financial Performance in Q1 FY27
The fundraising announcement follows the release of the company’s financial results for the first quarter ended June 30, 2026. Standalone profit after tax rose 12.8% to ₹936 crore compared to the same period last year. Revenue from operations increased by 15.1% to ₹18,343 crore. The company’s operating profitability also showed modest improvement, with the EBITDA margin moving to 8.3% from 8.2% in the previous year. On a consolidated basis, which includes the performance of subsidiaries, the company reported a net profit of ₹860 crore on revenues of ₹18,795 crore.
Store Network and Growth Trends
DMart continued its physical expansion by opening three new stores during the quarter, taking the total count to 503 outlets across India. Despite this, management highlighted a moderation in same-store sales growth—a metric that tracks revenue from stores operational for more than two years—which dropped to 5.5% from 7.1% a year ago. The company’s leadership noted that older, high-performing stores in large metropolitan areas saw flat growth, while locations in non-metro regions continued to demonstrate healthy performance.
This trend is significant for investors as DMart has historically relied on high sales density in its older stores to drive overall profitability. The shift toward non-metro growth suggests the company is increasingly dependent on smaller markets to maintain its momentum as metro markets approach a saturation point. Given the company's reliance on high inventory turnover and thin margins, the ability to maintain sales growth in these established locations will be an important metric to track alongside the debt-servicing impact of the new debentures. The next major update for investors will involve the company's stated use for the ₹1,000 crore, which will clarify its capital allocation strategy for the coming fiscal year.