DMart’s FY27 store-opening outlook slows to about 75, triggering brokerage target cuts

Avenue Supermarts has guided for roughly 15% annual store growth, or about 75 new DMart stores in FY27. Goldman Sachs and Morgan Stanley cut target prices as they lowered expansion, same-store sales and earnings assumptions; management remains focused on disciplined DMart Ready growth.

— Source publishedWed, 29 Jul, 2026, 07:59 IST·First seen Wed, 29 Jul, 2026, 08:56 IST·Source NDTV Profit

What happened

DMart guided to slower annual store expansion of about 15%, or 75 openings in FY27, prompting target-price cuts by Goldman Sachs, Morgan Stanley and Macquarie.

Key facts

  • Management guides for approximately 15% annual store growth
  • Approximately 75 new stores planned in FY27
  • Goldman Sachs target cut to Rs 3,800 from Rs 4,000
  • Morgan Stanley target cut to Rs 4,464 from Rs 4,827
  • Morgan Stanley FY27 store-opening estimate cut to 75 from 85
  • Morgan Stanley same-store sales growth forecast cut to 7% from 8%
  • Morgan Stanley FY27-FY29 EPS estimates reduced by around 3%
  • Macquarie target price Rs 3,250
  • Expected gross margin: 14-15%
  • Macquarie forecasts roughly 8% same-store sales growth

Why this matters

DMart’s slower store-addition guidance suggests a selective real-estate posture, potentially creating opportunities for rivals to compete for attractive catchments and retail locations.

What to watch

  • Quarterly net store additions versus the roughly 75-store FY27 guide.
  • Same-store sales growth, especially discretionary general merchandise and non-food categories.
  • New-store sales ramp, payback periods and contribution margins.
  • Distribution-center additions and evidence of construction, approvals or real-estate bottlenecks.
  • DMart Ready order growth, repeat rates, delivery economics and geographic rollout pace.
  • Further brokerage revisions to FY27-FY28 revenue, EBITDA and target-price assumptions.
  • Tighten capital allocation toward high-throughput cities and proven micro-markets rather than chasing store-count targets.
  • Stage DMart Ready expansion around dense existing-store clusters to improve fulfillment economics and customer acquisition efficiency.
  • Increase focus on private-label mix, procurement savings and shrink control to protect gross margin amid slower operating leverage.
  • Communicate store pipeline visibility, opening phasing and new-store ramp metrics to address investor concerns over the reduced target.