Avenue Supermarts Earnings Summary — Q2 FY2027

• Consolidated revenue from operations grew 17.80% YoY to ₹19,644.01 Cr, supported by ongoing store network expansion and steady footfalls across offline formats.
• Consolidated net profit after tax reached ₹742.98 Cr, rising 8.49% YoY but decreasing 13.65% sequentially from ₹860.44 Cr in Q1 FY2027.
• Operating margin contracted to 7.09% from 7.28% in Q2 FY2026 and 7.98% in Q1 FY2027, reflecting gross margin dynamics and general retail cost inflation.
• Standalone business posted revenue of ₹19,206.18 Cr and net profit of ₹803.60 Cr, while digital subsidiary Avenue E-commerce Limited continued to incur operating drag with a net loss of ₹75.35 Cr for the quarter.
• Net cash flow from operating activities for H1 FY2027 fell to ₹552.57 Cr compared to ₹1,398.17 Cr in H1 FY2026, primarily driven by higher inventory build-up ahead of the festive season.
• Total borrowings surged via commercial papers and short-term debt, driving the consolidated debt-equity ratio to 0.16x compared to 0.07x in the prior year period.

Management did not issue formal numerical financial guidance, maintaining its core focus on the Everyday Low Cost - Everyday Low Price (EDLC-EDLP) framework, long-term freehold store expansion, and disciplined operational efficiency.

Stable

Topline execution remains resilient with steady double-digit YoY top-line compounding; however, margins remain restrained by e-commerce losses and pricing discipline amidst quick-commerce metro competition.

Avenue Supermarts continues to leverage its freehold store asset strategy to sustain structural cost advantages. Near-term focus remains anchored in optimizing supply chains for festive peak volumes while managing margin dilution from digital initiatives and increased short-term working capital requirements.