DMart falls 4% after Q1FY27 update: revenue up 15% but per-store sales soften
Avenue Supermarts shares dropped up to 4.86% to ₹3,984.20 after its Q1FY27 business update showed 15.13% YoY revenue growth to ₹18,343.49 cr, undercut by slower store additions (net 3 in the quarter, 503 total) and per-store revenue down ~4% YoY to ₹146.3 cr. Antique maintained 'Hold', cutting its target to ₹4,437 from ₹4,524.
What happened
Avenue Supermarts (DMart) · Avenue Supermarts shares fell over 4% after its Q1FY27 business update showed 15% revenue growth to ₹18,343 cr but slower store
Key facts
- revenue up 15.13% YoY to ₹18,343.49 cr
- share fell up to 4.86% to ₹3,984.20
- 503 stores as of June 30
- net 3 stores added in Q1FY27
- revenue per store down ~4% YoY to ₹146.3 cr
- target cut to ₹4,437 from ₹4,524
Why this matters
Slowing organic store additions (503 total) alongside per-store softness may open the door to accelerated expansion via acquisitions or format diversification to reignite the growth narrative.
What to watch
- Full Q1FY27 P&L: gross margin vs ~14.5% baseline and EBITDA trajectory
- SSSG (like-for-like) numbers separating new-store dilution from genuine demand softness
- Quarterly net store additions relative to management's historical 40+ per year pace
- Quick-commerce market share data in top metros
- Any change in Antique/consensus rating from Hold to Sell/Buy
- Await full Q1FY27 results for gross margin, EBITDA margin and SSSG breakdown before adding positions
- Track brokerage revisions post-update; Antique's cut may prompt HDFC/Motilal/Nuvama recalibration
- Monitor DMart Ready order economics and any commentary on quick-commerce response strategy
- Watch store-addition guidance for FY27 as leading indicator of physical footprint confidence