DMart shares fell nearly 5% on Thursday after the supermarket chain’s first-quarter business update failed to impress investors. While the company continued to grow its sales, the pace was slower than what the market had expected, triggering a sell-off in the stock.
Avenue Supermarts, which owns and operates DMart stores, reported standalone revenue of ₹18,343.49 crore for the quarter ended June 30, up 15.1% from ₹15,932.12 crore a year earlier. During the quarter, the retailer opened three new stores, taking its total network to 503 outlets.
Although the numbers reflected steady growth, analysts said they fell short of expectations. Investors were also disappointed by the slower pace of store expansion, raising concerns about the company’s near-term growth.
Several brokerages maintained a cautious view after the update. Goldman Sachs retained its ‘Sell’ rating, saying revenue growth remained weaker than expected despite favourable pricing trends in the FMCG sector. Macquarie also continued with its ‘Underperform’ rating, pointing to slower sales growth and fewer store additions than anticipated.
Morgan Stanley said the softer revenue performance could weigh on the stock in the near term, while HSBC kept its ‘Reduce’ rating after the company missed estimates. UBS, however, remained positive on the long-term story, retaining its ‘Buy’ rating despite describing the quarter as subdued.
DMart has long been regarded as one of India’s strongest retail success stories, known for its value-driven business model and loyal customer base. However, the company is now facing increasing competition from quick-commerce platforms and changing consumer spending patterns, making growth more challenging.
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