DMart shares sink 4% as Q1 revenue growth misses street forecast

Avenue Supermarts shares fell nearly 4 per cent on Thursday after its first-quarter revenue growth fell short of expectations

Shares of Avenue Supermarts Ltd., the operator of the DMart retail chain, fell nearly 4 per cent on Thursday after its first-quarter revenue growth fell short of the street's expectations. 

 

The retail chain's stock fell as much as 3.96 per cent during the day to ₹2,417.9 per share, the steepest intraday fall since June 10 this year. The stock pared some losses to trade 3.3 per cent lower at ₹4,239 apiece, compared to a 0.32 per cent advance in Nifty 50 as of 10:20 AM. 

 

Shares of the company fell for the second day, and the stock currently trades at 6.8 times the 30-day average trading volume, according to Bloomberg data. The counter has risen 19.4 per cent this year, compared to a 7.6 per cent advance in the benchmark Nifty 50. Avenue Supermarts has a total market capitalisation of ₹2.7 trillion, according to BSE data.   Track LIVE Stock Market Updates Here

DMart Q1 business update 

The DMart retail chain reported a 16.2 per cent year-on-year rise in standalone revenue from operations for the quarter ended June 30, 2025. Revenue for the first quarter of the financial year 2025–26 stood at ₹15,932.12 crore, up from ₹13,711.87 crore in the same period last year, it said in an exchange filing on Wednesday. 

 

The company reported a revenue of ₹11,584.44 crore in Q1 of fiscal 2023 and a top line of ₹9,806.89 crore in Q1 of 2022. 

 

As of June 30, 2025, the total number of DMart stores stood at 424, including one outlet in Sanpada, Navi Mumbai, which is temporarily closed for renovation.

 

In Q4, Avenue Supermarts consolidated net profit fell 2.2 per cent to ₹551 crore due to lower operating margins. 

JM Financial on DMart Q1 update 

The revenue growth in the first quarter was 1 per cent below JM Financial's and 2 per cent below consensus estimates, the brokerage said in a note. JM Financial expects a 40 basis points year-on-year (Y-o-Y) dip in Ebidta margin to 8.5 per cent in Q1, despite expectations of a flat gross margin, largely on account of higher operating costs. Store addition largely in line with expectations. 

 

Analysts expect the Ebitda to grow 10 per cent year-on-year to ₹1,350 crore in Q1 FY26. Net profit is expected to rise 7 per cent year-on-year to ₹870 crore, primarily impacted by higher depreciation expenses and lower other income, JM Financial said. 

About Avenue Supermarts (DMart) 

DMart is a national supermarket chain that offers customers a range of home and personal products under one roof. The company offers a wide range of products with a focus on foods, non-foods (FMCG) and general Merchandise and Apparel product categories.