Avenue Supermarts Ltd., which operates the DMart retail chain, fell nearly 5% in early trade on Friday after reporting its business update for the April-June quarter of FY27.
The stock was trading at Rs 4,014.90 on the NSE, down 172 points, or 4.09%, from the previous close within the first hour of trading.
The company reported standalone revenue from operations of Rs 18,343.49 crore for the quarter ended June 30, 2027, compared with Rs 15,932.12 crore a year earlier, an increase of about 15%.
The decline in the share price followed the business update, as investors assessed slower revenue growth and a lower pace of store additions than in the previous quarter. Several brokerages also said the quarterly update fell short of expectations.
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Revenue Growth Moderates
Standalone revenue rose to Rs 18,343.49 crore in the April-June quarter from Rs 15,932.12 crore in the corresponding period last year.
Revenue growth slowed from 19% in the January-March quarter to 15% in the April-June quarter. On a sequential basis, revenue increased from Rs 17,205 crore reported in the preceding quarter.
Revenue from operations for FY26 stood at Rs 66,968 crore.
Store Additions Slow
The company had 503 operational stores as of June 30, 2027. The figure includes one store at Sanpada, Navi Mumbai, which remains closed for reconstruction.
The retailer added three stores during the quarter, compared with 58 additions in the January-March quarter. Its store network has expanded from 284 stores in FY22 to more than 500 by the end of FY26.
Brokerages See Weak Quarter
Citi maintained its Sell rating with a target price of Rs 3,650, citing risks to same-store sales growth and earnings from quick-commerce competition.
Morgan Stanley retained its Overweight rating with a target price of Rs 5,083, but said first-quarter growth was weak and below expectations following a stronger fourth quarter.
Macquarie maintained Underperform with a target price of Rs 3,100, while Goldman Sachs retained its Sell rating with a target price of Rs 4,000. Both brokerages said first-quarter sales growth disappointed and store additions were below expectations.
Separately, the company recently raised Rs 200 crore through the issuance of commercial papers to be listed on the BSE. It is also scheduled to announce its financial results after a board meeting on July 11, 2026.
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