DMART

has added 50 stores in FY25 (17 in last 15 days) of FY25 which will accelerate sales growth from ~17% to 20-21%. However higher overheads and funding cost will take its toll on reported earnings. We expect D’Mart to have a capex of Rs240bn in FY25-30 as against Rs120bn in past 5 years which can’t be met from internal accruals. We expect D’Mart to look for Rs60-80bn fund infusion in FY26 given limited cash in balance sheet and long gestation of setting up stores (Land, building etc over 2.5 years). We cut EPS by 0.7/6.1/7.1% for FY25/26/27.