Avenue Supermarts Ltd., the operator of DMart, fell nearly 6% on Tuesday, with investors turning cautious ahead of the company's annual investor meeting — the first to be led by Managing Director and CEO Anshul Asawa.
The sell-off comes after management indicated it expects to grow its store network by around 15% in FY27, implying roughly 75 new stores during the year. That is below the 85 stores opened in FY26 and well short of market expectations for nearly 100 additions, raising concerns that DMart's expansion could slow at a time when competition in food and grocery retail is intensifying.
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The annual investor meet is expected to provide the first comprehensive strategic roadmap under Asawa, who officially took over as CEO in February 2026 and became Managing Director in April 2026 after shareholder approval.
According to HSBC, the event will likely be closely watched for signs of Asawa's independent strategy. The brokerage, which maintains a 'Reduce' rating on the stock with a target price of Rs 3,570, expects discussions to centre on store additions, the revamped DMart Ready e-commerce strategy, private-label expansion and the performance of stores in newer geographies.
HSBC also reiterated its cautious stance, arguing that DMart's traditional pricing advantage is facing increasing pressure as competition intensifies, particularly from quick commerce platforms that continue to gain market share in urban grocery spending.
Beyond expansion, analysts expect management to address several structural questions facing the business, including the economics of opening stores in metro cities versus smaller towns, improving revenue per square foot, scaling up DMart Ready, and increasing the contribution of higher-margin private-label products.
Asawa brings more than three decades of experience in consumer goods and retail, having spent 29 years at Unilever, including leadership roles at Hindustan Unilever, as well as global assignments across digital commerce, marketing and international markets. Investors are now looking to see whether that experience translates into a refreshed strategy for India's largest listed supermarket chain.
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