Avenue Supermarts Q1 Update: DMart Expects 16% Revenue Growth

rts Ltd, the operator of the DMart retail chain, announced a robust 16% year-on-year increase in standalone revenue for the first quarter of FY26, reaching Rs 15,932 crore for the period ending June 30, 2025, compared to Rs 13,711.87 crore in the same quarter last year. The update, released after market hours on July 2, 2025, underscores the company’s continued growth momentum despite competitive pressures from quick-commerce players. Led by Radhakishan Damani, Avenue Supermarts expanded its footprint, operating 424 stores across India as of June 30, 2025, including one store in Sanpada, Navi Mumbai, currently under renovation. The company’s focus on its "Everyday Low Cost - Everyday Low Price" strategy continues to drive consumer traction in its grocery, personal care, and general merchandise offerings. However, market sentiment remains mixed, with shares closing at Rs 4,392.25 on July 2, down 1.22%. Analysts from Morgan Stanley and Goldman Sachs expressed caution, noting the 16.2% revenue growth fell short of their 17.4% estimate, citing competitive challenges in urban markets. Conversely, CLSA maintained an outperform rating with a target price of Rs 5,549, highlighting the addition of nine new stores during the quarter. In Q4 FY25, Avenue Supermarts reported a consolidated net profit of Rs 551 crore, a 2.2% decline from Rs 563 crore year-on-year, with a PAT margin of 3.7% compared to 4.4% in Q4 FY24, reflecting margin pressures. The company’s focus on store expansion and operational efficiency will be key to sustaining growth amidst evolving retail dynamics.