Avenue Supermarts Shares Fall 5% as DMart Q1 Update Disappoints Brokerages
DMart operator posted 15% Q1 revenue growth to Rs 18,343.49 crore but added just three stores, taking its total to 503. Brokerages including Citi, Morgan Stanley and Macquarie flagged slowing growth and rising quick-commerce competition, sending shares down ~5% to Rs 4,014.90 on the NSE.
What happened
Avenue Supermarts (DMart) · DMart operator Avenue Supermarts shares fell ~5% after a disappointing Q1 business update showing slower 15% revenue growth and only
Key facts
- shares -5%
- Rs 4,014.90 NSE price
- revenue Rs 18,343.49 crore Q1
- revenue growth 15%
- 503 operational stores
- 3 stores added
- Rs 200 crore commercial papers
Why this matters
Slowing store rollout and rising quick-commerce threat suggest DMart may need to pursue digital/omnichannel partnerships or acquisitions to defend its value-retail moat.
What to watch
- H2 FY26 store-opening run-rate versus 40+ annual pace
- Same-store sales growth and per-store revenue density trend
- Quick-commerce share gains in urban staples and general merchandise
- Gross and EBITDA margin trajectory amid competitive pricing
- Further brokerage downgrades or target-price cuts
- Expect DMart Ready and online delivery investment commentary on next earnings call
- Peer grocery and q-commerce names (Zomato/Blinkit, Zepto-linked, Reliance Retail) get re-rated on relative positioning
- Sell-side revises FY26 store-count and revenue-density estimates downward
- Possible capex/expansion cadence clarification from management to calm investors