DMart Q1 Revenue Up 15% But Brokerages Split As Quick Commerce Clouds Metro Growth
Avenue Supermarts posted 15.1% revenue growth to Rs 18,343 crore and 12.8% profit rise to Rs 936 crore, with Ebitda margin steady at 8.3%. Brokerages diverged sharply: Morgan Stanley and Bernstein target Rs 5,000+, while Citi cut to Rs 3,400 and Goldman sits at Rs 4,000, flagging quick commerce pressure on metro same-store sales.
What happened
DMart's Q1 FY27 showed 15% revenue growth and steady margins, but brokerages split on outlook as quick commerce competition stalls metro same-store sales. Bulls
Key facts
- Revenue up 15.1% to Rs 18,343 crore
- Ebitda up 16.2% to Rs 1,526 crore
- Ebitda margin 8.3%
- Net profit up 12.8% to Rs 936 crore
- Morgan Stanley TP Rs 5,083
- Bernstein TP Rs 5,000
- Citi TP cut to Rs 3,400
- Goldman Sachs TP Rs 4,000
- 80+ store additions annually
Why this matters
Quick commerce's structural threat to metro footfall strengthens the case for accelerating DMart Ready expansion or exploring rapid-delivery partnerships to protect urban share before the erosion compounds.
What to watch
- Q2 metro same-store sales growth print (deceleration vs bill-cut/footfall data)
- EBITDA margin trajectory below or above 8.3% band
- Quick commerce grocery GMV share disclosures from Blinkit/Zepto/Instamart
- Further brokerage target revisions clustering above or below Rs 4,000
- New store opening run-rate vs prior guidance
- Monitor DMart's own quick-commerce/express delivery push (DMart Ready) for geographic and SKU expansion
- Watch competitor capex from Reliance Retail and quick-commerce funding rounds intensifying discounting
- Track store addition pace and mix shift toward smaller-format tier-2/3 locations
- Expect management commentary defending value proposition vs convenience-led q-comm