Avenue Supermarts share price declined over 4% in early trade on Friday, after the company reported its business update for the first quarter of FY26. Avenue Supermarts shares dropped as much as 4.86% to ₹3,984.20 apiece on the BSE.
Avenue Supermarts Ltd, the operator of the D-Mart retail chain, reported a 15.13% rise in its standalone revenue from operations to ₹18,343.49 crore for the first quarter ended on June 30, 2026.
The company had posted revenue from operations of ₹15,932.12 crore in the April-June quarter a year ago, Avenue Supermarts said in a regulatory filing on July 2.
On a sequential basis, D-Mart’s revenue in Q1FY27 increased 3.7% from ₹17,683.86 in the March quarter (Q4FY26).
Annualized revenue per store declined around 4% year-on–year (YoY) to ₹146.3 crore.
The total number of stores of the Radhakishan Damani promoted retail chain stood at 503 as of June 30, 2026.
Analysts believe the moderation in revenue growth is likely attributable to slower store additions compared with the nine stores opened in Q1FY26. DMart added net 3 stores during the June 2026 quarter. The company added 85 stores during FY26.
“Profitability is expected to remain subdued due to elevated operating costs and weaker GM&A performance. Aggressive upfront investments in new stores, coupled with elevated real estate costs, are also expected to weigh on ROCE. While these investments are intended to enhance customer experience and strengthen service offerings, they should keep profitability under pressure in the near term,” said Antique Stock Broking.
The brokerage firm cuts its estimates by 3% and 2% for FY27 and FY28 to account for weaker-than-expected Q1FY27 performance. It expects sales and EBITDA CAGR of 17% each over FY26-FY28.
“However, near-term challenges such as subdued performance in the margin of general merchandise & apparel, weak recovery in mature stores/ SSSG, and increasing competition intensity from online grocery format mainly in metros or Tier1 cities is likely to keep near term performance under check,” it added.
The brokerage firm maintained a ‘Hold’ rating and cut on Avenue Supermarts share price target to ₹4,437 apiece, based on 40x FY28 EV/EBITDA, from ₹4,524 earlier.
Avenue Supermarts Q1 Results Date
Avenue Supermarts will announce its financial results for the first quarter of FY27 on July 11, Saturday. The board of directors of the company is scheduled to meet on July 11 to consider and approve the unaudited Standalone & Consolidated Financial Results of the company for the quarter ended June 30, 2026.
Avenue Supermarts Fundraising
The board of directors of Avenue Supermarts, in its meeting on July 11, will also consider raising of funds by issue of Debt securities by way of private placement, upto such limit as may be deemed appropriate and approved by the board.
Avenue Supermarts Share Price Performance
Avenue Supermarts share price fell 4% in one month and declined 8% in three months. The stock has gained 7% in six months, and has dropped 8% in one year. DMart share price has slipped 16% in two years, but has rallied 21% over the past five years.
At 10:10 AM, Avenue Supermarts share price was trading 4.13% lower at ₹4,014.85 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
