
Shares of Avenue Supermarts Ltd (DMart) fell 4 per cent in Thursday’s trade after the retailer released its June quarter updates, eroding the notional value of promoter holdings—led by Radhakishan Damani—by Rs 8,100 crore. Pressure on revenue growth persists, said stock analysts tracking the firm.
Promoters held a 74.65 per cent stake in DMart as of the March quarter. This stake was valued at Rs 2,13,363 crore on Wednesday but dropped to Rs 2,05,239 crore on Thursday, mirroring the stock’s decline.
The DMart stock fell 3.81 per cent to hit a low of Rs 4,225 on BSE, trimming its 2025 gains to 18.73 per cent. According to the Bloomberg Billionaires Index, Damani’s net worth stood at $20.1 billion, placing him 112th among the world’s richest individuals.
DMart said its revenue grew 16 per cent YoY to Rs 15900 crore for the June quarter. This was against 17 per cent YoY growth in Q4FY25 and 18 per cent YoY growth in Q3FY25.
The revenue growth came in 1 per cent below JM Financial's estimate and 2 per cent below the consensus estimates.
DMart added 9 stores on a sequential basis in line with JM's estimate of 10 stores in Q1, taking the store count to 424 in Q1FY26. Assuming a new store area of 41,000 square feet, it added 0.4 million square feet QoQ in Q1, taking the EOP total selling space to 17.6 million square feet.
"We estimate a 40 bps YoY dip in Ebitda margin to 8.5 per cent in Q1FY26, despite expectations of flat gross margin, largely on account of higher operating cost. Overall, we expect 10% YoY growth in Ebitda to Rs 1,350 crore," JM Financial said.
Acceleration in store additions remains the key monitorable for DMart, said MOFSL as it retained its 'Buy' on the stock. The brokerage said it is building in 60 net store additions in FY26 against 50 in FY25.
"Based on our selling area estimates, we expect Ebitda per square feet of Rs 776, down 3 per cent YoY despite 2 per cent increase in sales/ sq ft due to 8-10 per cent increase in staff and
other expenses per sq ft. We expect PAT to grow 7 per cent YoY to Rs 870 crore largely on
account of increase in depreciation expenses and lower other income," JM said.