Trent leads the FY27 growth race, but store productivity must confirm it.

Trent deserves first investment-diligence priority: its Q2 FY27 standalone revenue grew 23%, ahead of DMart’s headline revenue growth of 17.8% and V-Mart’s provisional 18%, while its Q1 FY27 profitability improved. [1] Trent · Trent jumps 12.64% to Rs 2,906 on 23% Q2 standalone revenue growth as Avenue Supermarts hits a 52-week low [2] DMart · DMart Q2 net profit rises 8.5% to ₹743.5 crore as revenue climbs 17.8% to ₹19,644 crore [3] source 3, economictimes.indiatimes.com [4] source 4, dsijpub.s3.ap-south-1.amazonaws.com DMart has the strongest disclosed unadjusted Q2 FY27 like-for-like growth among the three retailers, at 9.5%, but weaker margins and falling sales per store qualify that strength; V-Mart’s profitability case remains anchored in Q1 rather than its latest sales update. [3] source 3, economictimes.indiatimes.com [5] DMart · DMart adds 15 stores in 2Q to reach 518; Motilal Oswal stays Neutral, trims target to Rs 3,925 after profit miss [6] DMart · DMart parent Avenue Supermarts' Q2 EBITDA margin slips to 7.3%, below 7.7% poll estimate; shares fall 4% [7] DMart · Prabhudas Lilladher downgrades Avenue Supermarts to Reduce, cuts target price to Rs 3,214 from Rs 4,027 [8] source 8, simplehai.axisdirect.in

Growth needs comparable numbers

Trent’s Q2 FY27 standalone revenue reached ₹5,788 crore, up 23%, for July–September 2026; this was a business update, with standalone and consolidated financial results scheduled for 29 October 2026. [10] source 10, moneycontrol.com [13] Trent · Offline still drives 83% of India's apparel sales as digital-first brands like Nykaa and Neeman's open stores [14] Trent · Trent Q2 standalone revenue rises 23% YoY as Marico buys 60% of PLIX owner Satiya Nutraceuticals Its acceleration is meaningful: Morgan Stanley contrasted that 23% growth with 16-20% over the preceding five quarters, although the scheduled results remain the next profitability test. [10] source 10, moneycontrol.com [15] Trent · Trent's Q2 revenue growth accelerates to 23%, but brokerages split: targets range from Rs 2,950 to Rs 3,406

DMart’s Q2 FY27 results carried headline revenue growth of 17.8% to ₹19,644 crore, while its separately identified standalone business update showed 18.4% growth to ₹19,206.18 crore for the quarter ended 30 September 2026. [2] DMart · DMart Q2 net profit rises 8.5% to ₹743.5 crore as revenue climbs 17.8% to ₹19,644 crore [16] source 16, livemint.com The explicitly standalone comparison therefore still favours Trent’s 23%, but DMart’s 17.8% headline should not be treated as the identical reporting perimeter. [1] Trent · Trent jumps 12.64% to Rs 2,906 on 23% Q2 standalone revenue growth as Avenue Supermarts hits a 52-week low [2] DMart · DMart Q2 net profit rises 8.5% to ₹743.5 crore as revenue climbs 17.8% to ₹19,644 crore [16] source 16, livemint.com DMart’s Q2 FY27 profit figures were ₹742.98 crore on 10 October 2026 and ₹743.5 crore on 12 October 2026, with 8.5% growth trailing revenue growth. [2] DMart · DMart Q2 net profit rises 8.5% to ₹743.5 crore as revenue climbs 17.8% to ₹19,644 crore [17] DMart · DMart parent Avenue Supermarts Q2 net profit rises 8.5% to ₹742.98 crore as total income grows nearly 18%

V-Mart’s provisional Q2 FY27 revenue was ₹953 crore, up 18%, while H1 FY27 revenue reached ₹2,042 crore, up 21%; neither provisional sales figure settles its latest margin performance. [3] source 3, economictimes.indiatimes.com [18] source 18, economictimes.indiatimes.com Its reported Q2 FY27 same-store growth was 3% in the 5 October 2026 update, while Sahi Markets on 1 October 2026 put adjusted growth at 11% after normalising a 19-day festive-calendar shift. [11] source 11, economictimes.indiatimes.com [12] source 12, sahi.com That adjustment materially changes the demand interpretation, but the reported and adjusted measures should remain separate rather than making V-Mart’s underlying growth automatically comparable with DMart’s 9.5%. [5] DMart · DMart adds 15 stores in 2Q to reach 518; Motilal Oswal stays Neutral, trims target to Rs 3,925 after profit miss [11] source 11, economictimes.indiatimes.com [12] source 12, sahi.com

Margins test growth quality

DMart’s Q2 FY27 EBITDA margin fell to 7.3% from 7.6% as of September 2025, despite its 17.8% revenue growth. [2] DMart · DMart Q2 net profit rises 8.5% to ₹743.5 crore as revenue climbs 17.8% to ₹19,644 crore [6] DMart · DMart parent Avenue Supermarts' Q2 EBITDA margin slips to 7.3%, below 7.7% poll estimate; shares fall 4% Systematix put food’s Q2 FY27 revenue share at 58.8%, up 39 basis points YoY, while standalone gross margin was 14.1%, down 10 basis points YoY: the combination makes product mix and gross-profit retention important to the margin diagnosis. [19] source 19, fortuneindia.com [20] source 20, business-standard.com Discounting remains a possible explanation to test, not an established cause of that decline; the firm finding is weaker gross-margin retention alongside a greater food contribution. [19] source 19, fortuneindia.com [20] source 20, business-standard.com

DMart Ready adds another profitability pressure: Nuvama put its Q2 FY27 losses at ₹60.6 crore, while Emkay put H1 FY27 capital expenditure at ₹2,100 crore. [21] source 21, economictimes.indiatimes.com [22] source 22, fortuneindia.com Digital losses and the maturation costs of expansion are therefore relevant to growth quality, although investment spending should not itself be treated as the explanation for EBITDA contraction. [6] DMart · DMart parent Avenue Supermarts' Q2 EBITDA margin slips to 7.3%, below 7.7% poll estimate; shares fall 4% [21] source 21, economictimes.indiatimes.com [22] source 22, fortuneindia.com As of 12 October 2026, DMart’s profit growth had lagged revenue growth in 11 of 14 quarters; Morgan Stanley’s FY27 margin forecast was 7.5%. [23] DMart · Jefferies cuts DMart target to Rs 4000 from Rs 4500 after Q2 margin miss; Citi trims to Rs 3250

Trent’s Q1 FY27 standalone EBITDA rose 32.6% to ₹1,110.6 crore, with a 19.6% margin, while its pre-Ind AS 116 operating EBIT margin was 12.9%; those are different profit lines, not interchangeable margin measures. [4] source 4, dsijpub.s3.ap-south-1.amazonaws.com [9] source 9, hdfcsec.com [24] source 24, dsijpub.s3.ap-south-1.amazonaws.com V-Mart’s Q1 FY27 reported EBITDA margin was 14.8%, up 50 bps YoY, against pre-Ind AS 116 EBITDA of ₹83.2 crore at a 7.6% margin, making lease-accounting treatment essential to any ranking. [8] source 8, simplehai.axisdirect.in [25] source 25, investing.com V-Mart also had identifiable operating support: Unlimited’s Q1 FY27 revenue grew 33% to ₹184 crore, its EBITDA margin reached 18.6%, and LimeRoad losses narrowed 39% to ₹2.8 crore. [26] source 26, simplehai.axisdirect.in [27] source 27, investing.com [28] source 28, simplehai.axisdirect.in

Expansion must earn its keep

Trent’s network reached 1,342 stores at 30 September 2026, but its Q2 FY27 net additions slowed to 10 Westside stores and 17 Zudio stores, against 13 and 40 respectively as of September 2025. [13] Trent · Offline still drives 83% of India's apparel sales as digital-first brands like Nykaa and Neeman's open stores [29] source 29, economictimes.indiatimes.com [30] source 30, economictimes.indiatimes.com [31] source 31, economictimes.indiatimes.com Faster revenue growth alongside fewer net openings is encouraging, but Q1 FY27 like-for-like growth was only low-single-digit, leaving existing-store momentum central to the next results. [15] Trent · Trent's Q2 revenue growth accelerates to 23%, but brokerages split: targets range from Rs 2,950 to Rs 3,406 [30] source 30, economictimes.indiatimes.com [31] source 31, economictimes.indiatimes.com [32] source 32, hdfcsec.com The geographic denominator also needs care: as of September 2025, CARE Ratings counted 1,101 Trent stores, including 3 UAE stores, so historical chain totals are not a pure Indian-store base. [33] source 33, careratings.com

DMart added 15 stores in Q2 FY27 and reached a reported 518 stores for H1 FY27, including Sanpada in Navi Mumbai, which was closed for reconstruction. [5] DMart · DMart adds 15 stores in 2Q to reach 518; Motilal Oswal stays Neutral, trims target to Rs 3,925 after profit miss [34] DMart · Avenue Supermarts H1 FY2027 deck (filed October): DMart store count 518, incl. Sanpada outlet shut for reconstruction Systematix put September 2026 retail business area at 21.4 million sq. ft., up 19.6% YoY, while Prabhudas Lilladher reported Q2 FY27 sales per store down 0.7% and bills per store per day down 4.1%. [7] DMart · Prabhudas Lilladher downgrades Avenue Supermarts to Reduce, cuts target price to Rs 3,214 from Rs 4,027 [35] source 35, fortuneindia.com Those measures qualify the strong like-for-like result: mature-store growth and weaker whole-estate averages can coexist, so expansion has not yet produced uniformly stronger store economics. [5] DMart · DMart adds 15 stores in 2Q to reach 518; Motilal Oswal stays Neutral, trims target to Rs 3,925 after profit miss [7] DMart · Prabhudas Lilladher downgrades Avenue Supermarts to Reduce, cuts target price to Rs 3,214 from Rs 4,027

V-Mart opened 23 stores and closed 1 during Q2 FY27, reaching 613 operating stores at 30 September 2026. [36] source 36, economictimes.indiatimes.com [37] source 37, economictimes.indiatimes.com [38] source 38, economictimes.indiatimes.com Its 18% revenue growth against reported same-store growth of 3% makes expansion important to the sales story, while the adjusted 11% measure offers a more favourable reading of underlying demand. [3] source 3, economictimes.indiatimes.com [11] source 11, economictimes.indiatimes.com [12] source 12, sahi.com Unlike DMart’s September 2026 area measure, an outlet count alone cannot demonstrate productive selling-space growth; V-Mart’s investment case therefore still rests heavily on sales and margin performance. [8] source 8, simplehai.axisdirect.in [35] source 35, fortuneindia.com [38] source 38, economictimes.indiatimes.com

Share gains need category evidence

CMAI put offline retail at 83% of India’s $95.7 billion apparel sales in CY2025, supporting the strategic importance of physical expansion by Trent and V-Mart. [13] Trent · Offline still drives 83% of India's apparel sales as digital-first brands like Nykaa and Neeman's open stores That market size is not a matched Q2 FY27 growth denominator, however, so Trent’s 23% and V-Mart’s 18% sales growth identify share-gain candidates rather than establish an actual apparel-share increase. [1] Trent · Trent jumps 12.64% to Rs 2,906 on 23% Q2 standalone revenue growth as Avenue Supermarts hits a 52-week low [3] source 3, economictimes.indiatimes.com [13] Trent · Offline still drives 83% of India's apparel sales as digital-first brands like Nykaa and Neeman's open stores Trent has the stronger relative revenue-growth case, while V-Mart’s adjusted same-store performance complicates any claim that demand strength belongs exclusively to Trent. [1] Trent · Trent jumps 12.64% to Rs 2,906 on 23% Q2 standalone revenue growth as Avenue Supermarts hits a 52-week low [3] source 3, economictimes.indiatimes.com [12] source 12, sahi.com

Style Baazar reached 286 stores after opening in Raniganj, West Bengal, as reported on 12 October 2026, showing that apparel competitors are also extending their footprint. [2] DMart · DMart Q2 net profit rises 8.5% to ₹743.5 crore as revenue climbs 17.8% to ₹19,644 crore That competitive expansion matters, but store totals do not settle how Indian apparel spending is being redistributed between Trent, V-Mart and regional chains. [2] DMart · DMart Q2 net profit rises 8.5% to ₹743.5 crore as revenue climbs 17.8% to ₹19,644 crore [13] Trent · Offline still drives 83% of India's apparel sales as digital-first brands like Nykaa and Neeman's open stores Trent’s revenue lead is therefore firmer than a claim of quantified category-share leadership. [1] Trent · Trent jumps 12.64% to Rs 2,906 on 23% Q2 standalone revenue growth as Avenue Supermarts hits a 52-week low [3] source 3, economictimes.indiatimes.com [13] Trent · Offline still drives 83% of India's apparel sales as digital-first brands like Nykaa and Neeman's open stores

DMart’s H1 FY27 merchandise mix was 56.9% food and grocery, 23.6% general merchandise and apparel, and 19.5% non-food FMCG, so total-chain growth is not equivalent to grocery growth. [39] source 39, livemint.com Its Q2 FY27 like-for-like growth of 9.5% supports customer traction, but falling bills per store and sales per store qualify a broad claim of competitive capture. [5] DMart · DMart adds 15 stores in 2Q to reach 518; Motilal Oswal stays Neutral, trims target to Rs 3,925 after profit miss [7] DMart · Prabhudas Lilladher downgrades Avenue Supermarts to Reduce, cuts target price to Rs 3,214 from Rs 4,027 DMart’s grocery-share case remains a growth-based inference rather than a quantified category-share gain. [5] DMart · DMart adds 15 stores in 2Q to reach 518; Motilal Oswal stays Neutral, trims target to Rs 3,925 after profit miss [39] source 39, livemint.com

FY27 leadership remains conditional

Trent ranks first for diligence because the fastest latest sales growth follows improving Q1 FY27 profitability, rather than the margin deterioration accompanying DMart’s Q2 FY27 growth. [1] Trent · Trent jumps 12.64% to Rs 2,906 on 23% Q2 standalone revenue growth as Avenue Supermarts hits a 52-week low [4] source 4, dsijpub.s3.ap-south-1.amazonaws.com [6] DMart · DMart parent Avenue Supermarts' Q2 EBITDA margin slips to 7.3%, below 7.7% poll estimate; shares fall 4% [9] source 9, hdfcsec.com Its lead would become stronger if the 29 October 2026 results preserve operating profitability and show better existing-store growth than Q1 FY27’s low-single-digit pace. [9] source 9, hdfcsec.com [10] source 10, moneycontrol.com [32] source 32, hdfcsec.com

V-Mart has the stronger challenger case on operating improvement: Q1 FY27 margins expanded, Unlimited grew faster and LimeRoad losses narrowed, while the calendar adjustment points to healthier Q2 demand. [8] source 8, simplehai.axisdirect.in [12] source 12, sahi.com [26] source 26, simplehai.axisdirect.in [28] source 28, simplehai.axisdirect.in DMart has the strongest disclosed unadjusted Q2 FY27 like-for-like growth, but ranks behind on growth quality until margins and estate-wide productivity recover. [5] DMart · DMart adds 15 stores in 2Q to reach 518; Motilal Oswal stays Neutral, trims target to Rs 3,925 after profit miss [6] DMart · DMart parent Avenue Supermarts' Q2 EBITDA margin slips to 7.3%, below 7.7% poll estimate; shares fall 4% [7] DMart · Prabhudas Lilladher downgrades Avenue Supermarts to Reduce, cuts target price to Rs 3,214 from Rs 4,027

Trent’s valuation prevents the diligence ranking from becoming an automatic investment recommendation: on 6 October 2026 it traded at over 70 times earnings. [40] Trent · Trent shares jump 10% on 23% revenue growth, but a 70x earnings multiple keeps valuation in focus Faster sales growth earns priority, but sustained profitability and productive expansion must justify that valuation; a quantified Indian category-share advantage remains a separate test. [1] Trent · Trent jumps 12.64% to Rs 2,906 on 23% Q2 standalone revenue growth as Avenue Supermarts hits a 52-week low [13] Trent · Offline still drives 83% of India's apparel sales as digital-first brands like Nykaa and Neeman's open stores [32] source 32, hdfcsec.com [40] Trent · Trent shares jump 10% on 23% revenue growth, but a 70x earnings multiple keeps valuation in focus

What to watch

• Trent’s 29 October 2026 results: maintaining Q1 FY27’s 12.9% pre-Ind AS 116 operating EBIT margin while improving on low-single-digit like-for-like growth would strengthen its lead. [9] source 9, hdfcsec.com [10] source 10, moneycontrol.com [32] source 32, hdfcsec.com
• DMart’s next quarterly results: recovery from Q2 FY27’s 7.3% EBITDA margin towards 7.6% as of September 2025, alongside reversal of the 0.7% sales-per-store decline, would challenge the current ranking. [6] DMart · DMart parent Avenue Supermarts' Q2 EBITDA margin slips to 7.3%, below 7.7% poll estimate; shares fall 4% [7] DMart · Prabhudas Lilladher downgrades Avenue Supermarts to Reduce, cuts target price to Rs 3,214 from Rs 4,027
• V-Mart’s Q2 FY27 profitability release: improvement on Q1 FY27’s 7.6% pre-Ind AS 116 EBITDA margin would strengthen the challenger case, particularly if demand supports the adjusted 11% same-store-growth reading rather than only reported 3%. [11] source 11, economictimes.indiatimes.com [12] source 12, sahi.com [25] source 25, investing.com
• Matched Q2 FY27 category totals: apparel growth below Trent’s 23% or V-Mart’s 18% would strengthen share-gain interpretations; DMart needs grocery-specific growth rather than its mixed-category headline revenue alone. [1] Trent · Trent jumps 12.64% to Rs 2,906 on 23% Q2 standalone revenue growth as Avenue Supermarts hits a 52-week low [3] source 3, economictimes.indiatimes.com [39] source 39, livemint.com