DMart Shares Fall 4% Post Q1 FY26 Update: Shares up 27% From 52-week low; CLSA Maintains 'Outperform'

DMart parent firm Avenue supermart shares on Thursday came under pressure, falling nearly 4% in early trade, as investors reacted to the company's Q1 FY26 business update which was released on Wednesday where the company reported a 13% year-on-year rise in revenue.

DMart Q1 FY26 Business Update

In its quarterly update, DMart revealed that standalone revenue from operations for the quarter ended June 30, 2025, stood at Rs 15,932.12 crore, marking a 13% increase from Rs 13,711.87 crore in Q1 FY25. The company has shown consistent year-on-year growth, with revenues at Rs 11,584.44 crore in Q1 FY24 and Rs 9,806.89 crore in Q1 FY23.

The company also informed about the store additions lately; as per the exchange filing, "The total number of DMart stores stood at 424 as of June 30, 2025, including one store in Navi Mumbai temporarily closed for renovation. This compares to 415 stores as of March 2025."

DMart Share Price Movement

As of July 3, DMart shares opened at Rs. 4,349.50 on the NSE. However, the stock slid nearly 4% intraday, hitting a low of Rs. 4,217.90. At 10 am, the shares were trading at Rs. 4,235.20, down 3.57% from the previous close. Despite the dip, the stock remains 27% above its 52-week low, with a market cap of Rs. 2.76 lakh crore.

Brokerage Calls: Split Views on DMart's Outlook

Brokerage firms gave mixed opinions on the stock after the Q1 results. Here's a detailed share price outlook and stock performance.

CLSA: 'Outperform': Target Price: Rs 5,549

Global brokerage firm CLSA maintained its 'Outperform' rating on DMart, setting a bullish target price of Rs 5,549, 31% higher than the current market price. While it noted that revenue was 2% below expectations, CLSA remained positive on the company's expansion strategy. CLSA believes DMart's store network growth and long-term business fundamentals continue to support upside potential.

Macquarie: 'Underperform: Target Price: Rs 3,000

In contrast, Macquarie kept its 'Underperform' rating with a target price of Rs. 3,000, keeping a cautious stance with a 29% downside prediction. It flagged moderation in Q1 sales growth compared to Q4 and a marginal miss on revenue. Macquarie pointed out that Q1 typically benefits from a stronger product mix, leading to better margins.

About DMart

Avenue Supermarts Limited, popularly known as DMart, is a leading Indian retail chain founded by Radhakishan Damani in 2002. The company operates a network of supermarkets and hypermarkets across India. Headquartered in Mumbai, DMart had 415 stores as of March 2025, with a presence across 12 states and union territories, as per data from Wikipedia.

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