D-Mart Share Price in Focus as Avenue Supermarts Q1 FY26 Revenue Jumps 16% YoY

D-Mart Share Price in Focus as Avenue Supermarts Q1 FY26 Revenue Jumps 16% YoY

Avenue Supermarts, the company behind the popular retail chain D-Mart, has caught the attention of investors after releasing its Q1 FY26 revenue update. The company posted a 16.2% year-on-year growth in standalone revenue, rising from ₹13,711.87 crore in Q1 FY25 to ₹15,932.12 crore in Q1 FY26. This growth is being seen as a sign of resilience and continued momentum in India’s organised retail market.

D-Mart Share Price Reaction

Despite the robust revenue numbers, dmart share price ended 1.35% lower at ₹4,392.20 in the previous trading session. The stock has gained around 23% so far in 2025 but remains down 8% on a year-on-year basis. Analysts continue to maintain a ‘Hold’ rating, citing concerns over valuation and margin pressures. The average avenue supermarts share price target is ₹4,033, implying a potential downside of 8% from current levels, according to Trendlyne data.

Store Expansion: Focus on Uttar Pradesh

One of the major highlights of the Q1 FY26 update is the company's expansion into Agra, Uttar Pradesh. This marks a significant step as D-Mart looks to deepen its footprint in India’s most populous state. The company added six net new stores during the quarter, taking the total D-Mart store count to 424 across the country.

Uttar Pradesh has long been on D-Mart’s radar due to its large consumer base and relatively underpenetrated modern retail market. Entering Agra follows its earlier entry into Ghaziabad, signaling that the retailer is targeting key urban markets within the state.

Cluster-Based Strategy for Sustainable Growth

Avenue Supermarts continues to follow a cluster-based expansion strategy. This involves opening new outlets near existing ones and distribution centers to streamline supply chains and reduce operational costs. The strategy has helped the company maintain efficiency and scale operations without significantly inflating overhead costs.

What Happened in Q4 FY25?

It’s worth noting that Q1 FY26 comes on the back of a subdued Q4 FY25 performance. In the previous quarter, the company posted a 2% YoY decline in consolidated net profit at ₹551 crore, even though total revenue grew 17% to ₹14,872 crore. Margins were under pressure, with EBITDA margins shrinking to 6.4% from 7.4% a year earlier. EBITDA itself rose slightly by 1.2% to ₹955.3 crore.

This margin pressure has been a concern among analysts, who point to rising operational costs, inflationary pressures, and competitive pricing in the Indian retail market.

Share Price Outlook: Hold or Buy?

With the avenue supermarts limited share price currently hovering around ₹4,392, analysts remain cautious. The average dmart share price target of ₹4,033 suggests that most market watchers expect limited upside in the near term.

For investors already holding the stock, it might be wise to watch how the company performs in Q2, especially in terms of profitability and store productivity in newer markets like Uttar Pradesh. New investors may want to wait for a better entry point or further updates from management before making a move.

NSE: DMART – Stock Snapshot

• Stock: NSE: DMART
• Current Price: ₹4,392.20
• 52-Week Range: ₹3,282 – ₹4,578
• Market Cap: ₹2.84 lakh crore
• Shareholding: Promoters hold 74.99%

Conclusion

Avenue Supermarts' Q1 FY26 performance has reinforced its position as a leading player in India’s organised retail sector. While revenue growth is strong, the concerns around valuation and margin sustainability persist. Investors should continue tracking the d-mart share price and upcoming quarterly results closely. For now, the market seems to be adopting a ‘wait and watch’ approach, and rightly so.

Whether you’re a long-term believer in D-Mart’s business model or a cautious investor, this latest update adds valuable context to any investment decision involving dmart nse or avenue supermarts shares.