By News18
Avenue Supermarts’ share price declined 4 per cent in the morning trades on Thursday. The Radhakishan Damani-promoted DMart announced its Q1 updates on Wednesday after market hours.
DMart noted that the standalone revenue from operations for the quarter ended June 30, 2025 stood at Rs 15,932 crore, higher by 16.2 per cent YoY from Rs 13,712 crore reported in the same quarter last year.
The retail player added that the total number of stores as of June 30, 2025 stood at 424 (including one store at Sanpada, Navi Mumbai, Maharashtra, currently closed for customers due to renovation).
At 9.45 a.m., shares were quoting Rs 4,230, down 3.8 per cent on the NSE.
Global brokerage Morgan Stanley has retained its ‘underweight’ rating on Avenue Supermarts (DMart), setting a target price of Rs 3,260 per share. The firm noted that DMart’s standalone revenue for Q4 rose 16.2% year-on-year, slightly trailing its estimate of 17.4% growth.
In Q1FY26, DMart added nine new stores, compared to six in the same quarter last year but down from 28 additions in Q4FY25. With the total store count now at 424, the estimated same-store sales growth (SSSG) for the quarter stands at approximately 3–4%. Morgan Stanley projects the EBITDA margin to decline to 7.8% in Q1, from 8.7% a year ago.
Echoing a cautious outlook, Macquarie maintained its ‘underperform’ rating on the stock with a revised target price of Rs 3,000. The brokerage highlighted a slight moderation in Q1 sales growth compared to Q4, with figures falling marginally short of estimates. However, it expects a sequential improvement in both gross and EBITDA margins, supported by a favourable product mix typically seen in the first quarter.
Contrary to the subdued tone of its peers, CLSA reiterated its ‘outperform’ rating on DMart and kept its target price at Rs 5,549 per share. While it acknowledged that Q1 standalone revenue came in 2% below expectations, CLSA remains optimistic on the company’s long-term prospects.