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DMart’s annualized Cost of Retailing (CoR) per sq. ft increased to ₹2,433 in Q2 FY26, marking a 7% YoY rise. While the pace of cost escalation has eased from the double-digit spikes seen in FY25, the sustained upward trend reflects continued inflationary pressure in rentals, utilities, and staffing costs. Despite this, overall cost control remains robust - the increase is moderate relative to the company’s steady store productivity and gross margin stability.
What it Means:
The data suggests DMart is effectively absorbing operational cost pressures through scale efficiencies and procurement discipline. As store expansion slows, managing CoR will be crucial for protecting profitability, especially in a high-volume, low-margin retail model. The modest 7% rise indicates that DMart’s operational playbook - optimizing supply chain and store-level cost structure — continues to anchor its resilience amid rising input costs.
