DMart shares slide over 4% after Q1FY26 results despite 12.8% PAT growth
Avenue Supermarts posted PAT of ₹936 crore, up 12.8% y-o-y, but shares fell over 4% to ₹3,988.20 on NSE as brokerages split over quick-commerce pressure on metro same-store sales. DMart Ready contracted to 11 cities from 25, while the company plans a ₹1,000 crore NCD raise amid rising debt.
What happened
DMart shares fell over 4% after Q1FY26 results showing 12.8% PAT growth to ₹936cr and a ₹1,000cr NCD plan. Brokerages split, flagging quick commerce pressure on
Key facts
- shares fell over 4%
- ₹3,988.20 NSE price
- PAT ₹936 crore up 12.8% y-o-y
- ₹1,000 crore NCD raise
- debt up from ₹11bn to ₹25bn y-o-y
- DMart Ready exited 14 cities, now in 11
- store additions ~75-80 annually
Why this matters
The DMart Ready retreat and NCD-funded balance sheet suggest an urgent need to either partner or acquire quick-commerce capabilities before metro share loss becomes irreversible.
What to watch
- Metro same-store sales growth trend in next 1-2 quarters
- Gross and EBITDA margin trajectory amid competitive pricing
- Debt levels and interest cost post NCD raise
- DMart Ready city count and online GMV disclosures
- Quick-commerce players' grocery market-share data and funding rounds
- Brokerages issue split ratings; watch for target-price cuts from cautious houses and buy-the-dip notes from bulls
- Management commentary on quick-commerce strategy and DMart Ready rationalization in earnings call
- ₹1,000 crore NCD issuance details and use-of-proceeds disclosure
- Accelerated tier-2/3 store rollout to offset metro softness