New Delhi, July 11 -- Avenue Supermarts Ltd., which operates retail chain DMart, kicked off the first quarter of FY27 on a subdued note as slowing sales at its mature stores and higher operating costs weighed on profitability despite steady revenue growth and continued store expansion.

Consolidated revenue rose 14.9% year-on-year to Rs.18,794.5 crore in the June quarter, but a similar increase in total expenses to Rs.17,637.2 crore from Rs.15,321.7 crore a year earlier limited profit growth, with consolidated net profit rising 11.3% to Rs.860.4 crore. Higher employee costs, finance expenses and other operating costs continued to weigh on profitability during the quarter.

"Two years and older DMart stores grew by 5.5% during Q1 FY27 as c...