DMart Share Price Falls After Q1 Profit Misses Estimates

Shares of Avenue Supermarts Ltd, which operates the DMart retail chain, declined 1.63% on Monday following the release of its Q1FY26 earnings report. The market reacted to weaker-than-expected profitability metrics, including a fall in operating margins and stagnant net profit.

In Q1FY26, Avenue Supermarts reported a 16.3% rise in consolidated revenue to Rs 16,359.70 crore, compared to Rs 14,069.14 crore in the same quarter last year.

Ebitda rose by 6% to Rs 1,299.04 crore, but this too missed expectations of Rs 1,354 crore. Ebitda margins contracted to 7.9%, down from 8.7% a year earlier, and below the consensus estimate of 8.2%.

Net profit for the quarter came in flat at Rs 772.97 crore, barely changing from Rs 773.82 crore a year ago and significantly below the expected Rs 883 crore. The muted bottom-line performance has raised investor concerns about margin pressures in a competitive retail environment.

DMart added nine new stores during the June quarter, taking its total store count to 424 as of June 30. The company focuses on value retailing through its chain of supermarkets, targeting middle-income households and offering a limited assortment of fast-moving consumer goods, apparel, and household products.

Despite consistent topline growth, the recent earnings report signals tightening margins.

Catch all the latest news from today's Quarterly earnings on our Q1 Results Live Blog here.