DMart share price hits over 3-year low; down 28% from April high

The stock price of DMart dipped 1.5% to ₹3,322.90 on Friday, quoting at its lowest level since March 2023. The stock slipped 9% in the past seven trading days.

DMart share price movement

 

Share price of Avenue Supermarts, the operator of DMart retail chain, hit an over three-year low at ₹3,322.90, falling 1.5 per cent on the BSE in Friday’s intraday deals in an otherwise firm market.

 

In the past two trading days, the stock price of the diversified retail company declined 3 per cent. In the past seven trading days, it slipped 9 per cent after the company reported a lower than expected operational performance in the July to September 2026 quarter (Q2FY27).

 

DMart’s stock price hit its lowest level since March 2023. The stock has corrected 28 per cent from its 52-week high of ₹4,642 on April 17, 2026.

 

 

At 01:39 PM on Friday, DMart quoted 0.5 per cent lower at ₹3,360.70, compared to a 0.51 per cent rise in the BSE Sensex. A combined 650,000 shares changed hands on the NSE and BSE.

 

Avenue Supermarts is a Mumbai-based company, which owns and operates D-Mart stores. D-Mart 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 & Apparel product categories. The company offers its products under various categories, such as grocery and staples, dairy and frozen, fruits and vegetables, home and personal care, bed and bath, crockery, footwear, toys and games, kids’ apparel, apparel for men & women and daily essentials.

 

Brokerages view on DMart

 

DMart’s revenue growth accelerated to 18 per cent year-on-year (YoY) in Q2 (vs. 15 per cent in Q1) as like-for-like (LFL) growth recovered to 9.5 per cent (vs. 5.5 per cent in Q1FY27). Store additions picked up to 15 in Q2 (vs. 3 in Q1), taking the total to 518 (+20 per cent YoY).  

 

However, profitability was weaker, with earnings before interest, tax, depreciation and amortisation (EBITDA)/ profit after tax (PAT) missing estimates by 3 per cent/ 7 per cent, as EBITDA margin contracted ~30bp YoY due to weaker gross margin (-10bp YoY because of lower general merchandise and apparel ((GM&A)) and higher cost of retailing (CoR) per sqft, which rose 3 per cent YoY owing to entry-level wage inflation, analysts at Motilal Oswal Financial Services (MOFSL) said in the Q2 result update.

 

While the quick commerce (QC) dent remains concentrated in dense metro catchments for now, the brokerage firm believes overall discounting and customer acquisition intensity are unlikely to moderate in the near-term and could weigh on DMart’s growth and margins over the medium-term. Analysts cut its FY27-28 EBITDA/PAT estimates by 1-3 per cent and model a compound annual growth rate (CAGR) of 16-17 per cent across DMart’s consolidated revenue/EBITDA/PAT over FY26-29E, driven by 15 per cent CAGR in area additions and mid-single-digit LFL growth.

 

“Acceleration in store additions and sustenance of mid-to-high single-digit LFL growth remain the most important growth levers for DMart. The stock, however, lacks near-term triggers to outperform; hence, we reiterate our 'Neutral' rating,” MOFSL said.

 

DMart's growth equation is gradually changing. Store additions accelerated to 85 in FY26, taking its network to 500 stores, with management working towards 15 per cent annual additions backed by a 2-3-year pipeline. This comes as mature-store productivity remains soft, and our primary research suggests 80 per cent of DMart's trade areas are already exposed to QC, analysts at ICICI Securities said.

 

Importantly, the impact is not uniform – management acknowledges pressure on smaller baskets, while larger planned purchases remain resilient and newer tier-1/2 stores are outperforming the company’s average. The brokerage firm believes faster expansion could support revenue growth, but the key monitor is whether new store productivity can offset softer mature stores without further pressure on asset turns and returns. Moderate inflation lends some support, it added with ‘Hold’ rating on the stock.

 

Meanwhile, analysts at Systematix Institutional Research expect the company’s December 2026 quarter (Q3FY27) revenue growth to be higher compared to Q2FY27, supported by the full-quarter benefit of inflation, a lower base in Q3FY26 (13.2 per cent YoY) due to the GST transition impact, and higher store additions. Revenue growth should also benefit from the shift of festivities in Q3FY27. 

 

While DMart's established business model, disciplined working capital management and expansion opportunities support long-term growth, near-term performance remains contingent on improving store-level productivity, managing operating costs and translating incremental retail area into sustainable profitability. Given the moderation in operating metrics, continued margin pressure and the substantial investment and right locations required to support expansion, the brokerage firm said. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.