DMart Q1 results for the financial year 2026-27 are out, and they show a mixed picture. Avenue Supermarts Limited, the company behind the popular DMart supermarket chain, posted higher profit and revenue for the quarter ended June 30, 2026. But growth slowed compared to the previous quarter, and the stock market reacted with a sharp fall.
In this article, we break down the DMart Q1 results FY27 in simple terms, covering the numbers, the business updates, past stock performance, and what top brokerages think about the stock going forward.
DMart Q1 Results FY26-27: Key Details
Avenue Supermarts announced its DMart Q1 results on July 11, 2026, after market hours. The board met the same day to approve the unaudited financial results for the quarter. The company also discussed a plan to raise funds through debt securities, subject to approvals.
The headline numbers were good on paper. Consolidated net profit rose 11.33% year-on-year to ₹860.44 crore, up from ₹772.81 crore in the same quarter last year. Revenue from operations climbed 14.9% to ₹18,794.53 crore, compared to ₹16,359.70 crore a year ago.
However, one number worried investors more than the rest. Like-for-like, or LFL, growth (sales from stores open for more than a year) slowed to 5.5%, down sharply from 10.8% in the previous quarter. This means older stores are not growing sales as fast as before, partly due to rising competition from quick-commerce apps.
Q1 Results Summary Table
| Metric | Q1 FY27 (Apr-Jun 2026) | Q1 FY26 (Apr-Jun 2025) | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹18,794.53 crore | ₹16,359.70 crore | +14.9% |
| Total Income | ₹18,820.31 crore | — | +14.9% |
| Total Expenses | ₹17,637.17 crore | — | +15.11% |
| Consolidated Net Profit | ₹860.44 crore | ₹772.81 crore | +11.33% |
| EBITDA | ₹1,499 crore | ₹1,299 crore | +15.4% |
| PAT Margin | 4.6% | 4.7% | -10 bps |
| Operating (EBITDA) Margin | 8.0% | 7.9% | +10 bps |
| LFL (Same-Store) Growth | 5.5% | 10.8% (previous quarter) | Slower |
Financial Performance
Looking closely at the DMart Q1 results, the company’s standalone revenue (just the core DMart business, without subsidiaries) rose 15% to ₹18,343.49 crore, up from ₹15,932.12 crore a year earlier. This shows the main retail business is still growing at a healthy pace, even if slower than before.
Total expenses grew slightly faster than revenue, rising 15.11% year-on-year. This is why profit margins stayed almost flat instead of expanding. The PAT (profit after tax) margin dipped slightly to 4.6%, from 4.7% in the same quarter last year, showing thin but stable profitability.
EBITDA, which measures core operating profit before interest, tax, and depreciation, grew faster than revenue at 15.4%, reaching ₹1,499 crore. The operating margin improved slightly to 8.0% from 7.9%. This suggests the company is managing its store-level costs reasonably well despite external pressures.
Business & Operational Highlights
Beyond the numbers, the DMart Q1 results included several important business updates. Here are the key highlights:
- Store count: DMart’s total store count reached 503 as of June 30, 2026, including one store at Sanpada, Navi Mumbai, which is temporarily closed for reconstruction.
- Store additions slowed: Only 3 new stores were added in Q1 FY27, a sharp slowdown after aggressive expansion in Q4 FY26 (85 stores added in FY26 overall).
- DMart Ready restructuring: The company is scaling back its online grocery arm, DMart Ready, by exiting 7 cities that contributed only marginally to sales. It now operates in 11 cities, focusing on larger metro markets.
- Online losses widened: DMart Ready’s losses grew to ₹247.4 crore in FY25, adding pressure on the company to make its e-commerce arm profitable.
- Management commentary: MD and CEO Anshul Asawa noted that stores open for more than two years grew more slowly than they did in the same quarter last year, pointing to maturing demand in older markets.
- Rising competition: Quick-commerce players continue to pressure DMart’s traditional store-based model, especially in big metro cities.
DMart Stock Performance
As of July 14, 2026, DMart shares were trading around ₹3,904, with a 52-week high of ₹4,949.50 and a 52-week low of ₹3,529. The current market capitalisation stands at roughly ₹2,60,500 crore.
Here is how the stock has performed over different time frames:
| Period | Approximate Return |
|---|---|
| YTD (2026, before Q1 results) | +8.7% |
| 1-Year | Roughly -2% to -3% |
| 3-Year | Around +28% |
| 5-Year | Around +41% |
These figures show that while DMart has delivered solid long-term gains for patient investors, the stock has struggled over the past year. Slower same-store growth and rising quick-commerce competition have weighed on investor sentiment recently.
Also Read: DMart Share Price Target
Brokerages’ Takeaway
Brokerage opinions on Avenue Supermarts remain divided after the DMart Q1 results. Some see long-term value, while others are cautious about high valuations and slowing growth. Here’s a quick summary:
- Motilal Oswal Financial Services (Buy): Raised its target price to ₹4,800 from ₹4,750, citing DMart’s value-focused model and strong store economics as long-term advantages, despite near-term growth deceleration.
- Citi (Sell): Set a target of ₹3,400, pointing to the slowdown in same-store sales growth, rising losses at DMart Ready, and cuts of 4-7% to FY27-29 revenue and profit estimates.
- Goldman Sachs (Sell): Target of ₹4,000, flagging that profit-before-tax growth is lagging EBITDA growth due to higher depreciation and interest costs.
- PL Capital (Hold): Cautious stance due to high valuations, growing competition, and weaker store-level metrics, including a 3.7% drop in sales per store and rising debt.
Overall, analyst sentiment leans toward “Hold,” with an average 12-month price target suggesting moderate upside from current levels. Most brokerages agree that DMart’s core value-retail model remains strong, but near-term growth is likely to stay under pressure from quick commerce.
Conclusion
The DMart Q1 results for FY27 show a company that is still growing its profit and revenue at a healthy clip, but at a slower pace than before. Net profit rose 11.3%, and revenue grew 14.9%, yet slowing same-store sales and a tough e-commerce environment have made investors more cautious. The stock’s sharp fall after results reflects these worries.
For long-term investors, DMart’s steady 3-year and 5-year returns show the strength of its low-price retail model. But in the short term, rising competition from quick-commerce apps and slower store additions mean the stock may stay under pressure. Anyone tracking DMart Q1 results should watch how the company manages this balance between growth and profitability in the coming quarters.
Disclaimer: All the information provided in this article is for educational and infomational purposes only. DateUpdateGo always advises seeking guidance from a certified financial advisor before making any investment-related decisions.
