DMart Q1 Sales Miss Fuels Mixed Broker Views Amid Quick-Commerce Pressure
Avenue Supermarts posted Q1 FY27 revenue of Rs 18,343 crore, up 15.1% YoY but short of Street estimates. Slowing same-store growth, revenue per sq ft down 3% YoY, and fewer store additions have brokerages split, with target prices ranging Rs 3,100-5,500 as quick-commerce rivals bite.
What happened
DMart's Q1 FY27 revenue of Rs 18,343 crore (up 15.1% YoY) missed Street estimates, prompting cautious brokerage views on slowing same-store sales, fewer store
Key facts
- Rs 18,343 crore Q1 revenue
- 15.1% YoY growth
- 503 stores
- revenue per sq ft down 3% YoY
- target prices Rs 3,100-5,500
Why this matters
Softening productivity metrics and quick-commerce pressure strengthen the case for accelerating DMart Ready/dark-store investment or partnerships to reclaim the last-mile convenience segment before rivals entrench.
What to watch
- Q2 FY27 same-store sales growth and revenue per sq ft direction
- Quick-commerce funding/burn signals and any discounting pullback
- DMart Ready GMV disclosure and delivery-speed pilots
- Store addition pace vs guidance
- Gross margin and general merchandise/apparel mix recovery
- Expect divergent broker notes; consensus TP band stays wide (Rs 3,100-5,500) until 1-2 more quarters clarify the SSSG trajectory
- Watch for DMart commentary on store-addition cadence and any accelerated online/delivery investment
- Stock likely range-bound with downside bias on multiple compression until per-sqft trend inflects
- Peers (Reliance Retail, Trent) and quick-commerce players (Blinkit, Zepto, Instamart) commentary read across as demand-share proxy