DMart falls 4% despite 15% revenue growth as store additions slow and per-store sales dip
Avenue Supermarts posted Q1 revenue of Rs 18,343.5 crore, up 15.1%, but the print missed expectations. Store expansion slowed to just three new outlets, taking the total to 503, while revenue per store fell ~4% to Rs 146 crore. Motilal Oswal maintains 'Buy'. The board meets July 11 to weigh debt fundraising.
What happened
DMart shares fell over 4% despite 15.1% Q1 revenue growth, as numbers missed expectations and store additions slowed to just three. Motilal Oswal maintains
Key facts
- share fell 4%
- Q1 revenue Rs 18,343.5 crore
- 15.1% revenue growth
- 503 total stores
- 3 new stores in Q1
- 58 stores in Q4
- revenue per store down ~4% to Rs 146 crore
- Q4FY26 net profit Rs 656.6 crore up 19%
Why this matters
Slowing organic expansion to just three new stores plus a board debt-fundraising review suggests DMart may be repositioning capital for accelerated or inorganic growth to defend share against online grocery.
What to watch
- Q2 store count and revenue-per-store recovery
- Gross margin and EBITDA margin trajectory amid competition
- Debt issuance size and stated use of proceeds
- Quick-commerce penetration data in DMart core metro markets
- Same-store sales growth (SSSG) disclosure trend
- Watch July 11 board outcome on debt fundraising for capex intent signal
- Track monthly/quarterly store-addition cadence vs ~40/year historical run-rate
- Monitor DMart Ready online sales disclosure for quick-commerce defense
- Brokerage estimate revisions post-print (Motilal held Buy; others may trim TP)