DMart Q1: Modest Margin Expansion Seen After Revenue Growth Misses Estimates
Avenue Supermarts expected to post Rs 18,343 crore revenue, up 15% YoY but below estimates, with net profit seen up 16% at Rs 964 crore. Ebitda margin near 8.26% on ~6% SSSG across 503 stores. Brokerages split as quick-commerce pressure and softening sales-per-store weigh on the outlook.
What happened
DMart operator Avenue Supermarts Q1 preview: 15% YoY revenue growth (below estimates), net profit seen up 16% at Rs 964 crore, modest margin expansion.
Key facts
- Q1 revenue Rs 18,343.49 crore up 15% YoY
- Ebitda seen Rs 1,517 crore up 15%
- Ebitda margin ~8.26%
- Net profit seen Rs 964 crore up 16%
- 503 stores
- SSSG ~6%
Why this matters
Persistent quick-commerce pressure on a value-retail leader strengthens the case for evaluating digital/omnichannel fulfillment partnerships or capabilities to defend share as sales-per-store softens.
What to watch
- SSSG dropping below 5% in subsequent quarters
- Sales-per-store or per-sqft continued decline in metro stores
- Aggressive quick-commerce discounting expanding grocery share
- EBITDA margin failing to sustain above 8%
- Store addition run-rate falling short of 40+ per year
- Watch management commentary on SSSG trajectory and quick-commerce response strategy
- Track brokerage target-price revisions and multiple compression post-print
- Monitor DMart Ready / e-commerce investment cadence and losses
- Assess new store opening pace guidance for FY26