Avenue Supermarts Q2FY27 Results: EBITDA up 14% but margin dips to 7.30%
- Avenue Supermarts reported Q2FY27 EBITDA of ₹1,403 crore, up 14% YoY
- EBITDA margin contracted 0.28% YoY to 7.30% despite the absolute growth
- Results missed analyst expectations, leading to downward revisions in FY27 and FY28 earnings projections
- Store expansion is expected to accelerate in H2FY27

*this image is generated using AI for illustrative purposes only.
Avenue Supermarts reported Q2FY27 EBITDA of ₹1,403 crore, a 14% rise YoY, even as its EBITDA margin contracted 0.28% YoY to 7.30%.
The margin decline came despite the double-digit growth in absolute EBITDA, signalling that revenue expansion outpaced profitability gains during the quarter. The results fell short of analyst expectations, prompting brokerages to revise their earnings estimates downward for FY27 and FY28.
Key financial metrics
The table below summarises the headline performance figures reported for Q2FY27.
| Metric | Q2FY27 | Change (YoY) |
|---|---|---|
| EBITDA | ₹1,403 crore | +14% |
| EBITDA margin | 7.30% | -0.28% |
Analyst response and earnings revisions
Following the quarterly print, analysts lowered their FY27 and FY28 earnings projections for Avenue Supermarts after the company missed expectations. The downward revisions reflect concerns over the margin trajectory, with the 0.28% YoY contraction in EBITDA margin drawing particular attention from the analyst community.
Store expansion outlook
Store expansion is expected to pick up pace in the second half of FY27. An acceleration in network additions during H2FY27 could support topline growth in subsequent periods, though the pace and scale of expansion remain subject to execution.
Historical Stock Returns for Avenue Supermarts DMart
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.15% | -5.53% | -8.63% | -23.42% | -22.00% | -28.89% |
How will the accelerated store expansion in H2FY27 impact Avenue Supermarts' capital expenditure requirements and free cash flow generation?
What specific cost pressures or competitive dynamics are driving the EBITDA margin contraction despite double-digit revenue growth?
To what extent might the downward earnings revisions for FY27 and FY28 influence institutional investor sentiment and the stock's valuation multiple?


































