DMart shares slide over 4% as Q1 like-for-like growth halves to 5.5%
Avenue Supermarts posted 11.3% profit growth to ₹860.6 crore and 14.9% revenue growth to ₹18,794 crore in Q1FY27, but decelerating like-for-like growth (5.5% vs 10.8% prior quarter), flat metro store sales, and a 2.37% drop in sales per sq.ft. spooked investors. EBITDA margin held at 7.97%.
What happened
Avenue Supermarts (DMart) shares fell over 4% after Q1FY27 results: net profit up 11.3% to ₹860.6 crore, revenue up 14.9% to ₹18,794 crore, but LFL growth
Key facts
- share fell 4.23% to ₹3,910
- net profit up 11.3% YoY to ₹860.6 crore
- revenue up 14.9% YoY to ₹18,794 crore
- sales per sq.ft. down 2.37% YoY
- LFL growth 5.5% vs 10.8% prior quarter
- EBITDA up 15.4% to ₹1,499 crore
- EBITDA margin 7.97%
Why this matters
Decelerating organic same-store growth strengthens the case for accelerating new store additions and evaluating omnichannel or adjacent-format expansion to sustain the topline trajectory.
What to watch
- Q2FY27 LFL growth print — reacceleration above 8% vs further slide below 5%
- Metro/urban same-store sales trajectory and sales-per-sq-ft trend
- EBITDA margin holding above ~8% amid competitive pricing
- Store addition pace and DMart Ready contribution disclosures
- Management commentary on quick-commerce competitive response
- Analysts cut FY27 LFL and revenue estimates; several downgrade or trim target prices citing quick-commerce pressure
- DMart accelerates store expansion in tier-2/3 markets and doubles down on DMart Ready dark-store rollout
- Increased promotional/pricing intensity to defend value positioning, watched for margin impact
- Peer read-across pressures other brick-and-mortar grocery names; quick-commerce players cited as beneficiaries