DMart Share Price Falls After Business Update; Brokerages Remain Bearish

Avenue Supermarts Ltd., the operator of the DMart retail chain, saw its share price drop by 3.80% following its first-quarter business update. The company estimated a 16% year-on-year revenue growth for the first quarter of fiscal 2026, with standalone revenue projected to rise to Rs 15,932.1 crore for the April–June period. As of June 30, DMart operates 424 stores across India.

Despite the revenue growth, brokerages remain bearish on Avenue Supermarts. Macquarie maintained an 'underperform' rating with a target price of Rs 3,000, noting that first-quarter sales growth had moderated slightly from the fourth quarter, despite a healthy pace of store additions. The brokerage also highlighted competitive concerns linked to quick commerce that have not yet been resolved.

Goldman Sachs also maintained a 'sell' rating with a target price of Rs 3,400, citing weaker-than-expected sales growth and expectations of year-on-year margin contraction, although store additions were in line with expectations.

Last month, DMart had announced the opening of its first major store in Uttar Pradesh. The new store, located at Ratan Mall in Agra, marks a significant expansion for the retail giant, which previously only had a presence in Ghaziabad, part of the National Capital Region.