Avenue Supermarts Ltd., widely known as DMart, is set to announce its Q1 FY26 financial results on July 11, 2025. As one of India’s most prominent retail chains, the upcoming quarterly results are being closely tracked by investors and market analysts. With healthy expansion in store count and steady consumer demand, DMart is expected to report a significant uptick in both revenue and profitability.
Let’s explore the Q1 FY26 preview in detail, along with DMart’s stock performance and the key metrics to watch.
Revenue Growth Anticipated Between 16% to 18%
DMart’s consolidated revenue for Q1 FY26 is expected to range between ₹15,932 crore and ₹16,348 crore, marking a year-on-year growth of approximately 16% to 18%. This projected revenue jump reflects strong consumer footfall and robust same-store sales growth across both urban and semi-urban markets.
The rise in revenue is largely attributed to:
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Increase in customer base
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Seasonal demand in the first quarter
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Strategic pricing and product availability
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Opening of 9 new stores during the quarter
Store additions continue to play a crucial role in top-line expansion. DMart’s consistent strategy of opening new outlets while maintaining high operational efficiency has reinforced its position as a leading value-retail brand.
PAT Growth: 8% YoY and 40% Sequential
DMart’s Profit After Tax (PAT) is expected to increase by 8% compared to the same quarter last year. On a quarter-on-quarter basis, the company may report up to 40% growth in PAT—highlighting strong operating leverage and improved margins.
The anticipated profit growth indicates the company’s ability to scale operations while absorbing the costs of expansion. However, cost inflation and margin pressures could still impact the overall profitability trend in the longer run.
EBITDA Forecasted to Increase by 10.5% YoY
Analysts expect DMart’s earnings before interest, tax, depreciation, and amortization (EBITDA) to reach approximately ₹1,349 crore in Q1 FY26. This would represent a 10.5% year-on-year growth.
This positive trend in EBITDA reflects a combination of:
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Better per-store efficiency
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Economies of scale from procurement
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Controlled store-level expenses
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A favorable product mix
However, increased fixed costs due to rapid expansion, including lease rentals and employee expenses, may cap further EBITDA expansion in the coming quarters.
9 New Stores Opened in Q1 FY26
A major highlight of the quarter has been the addition of 9 new DMart outlets. This expansion pushes the total number of operational DMart stores closer to 370+. These new stores have not only contributed to higher revenue but also increased the company’s reach across Tier 2 and Tier 3 cities.
DMart continues to follow a cautious yet consistent store rollout strategy—focusing on densely populated urban clusters while selectively entering high-potential semi-urban locations.
Stock Performance Analysis
DMart’s share price performance reflects both the optimism and challenges faced by the company.
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6-Month Gain: DMart stock rose 16.72% over the last six months, indicating a recovery in investor sentiment.
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1-Year Drop: On a one-year basis, the stock has declined by 16.43%, suggesting caution over near-term profitability and valuation concerns.
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5-Year Return: Over five years, DMart has delivered a solid return of 76.32%, confirming its status as a long-term compounder.
As of July 11, 2025, the stock was trading at ₹4,098.80 per share with an intraday high of ₹4,185.00. The recent uptrend may reflect market expectations of a strong Q1 performance.
Key Metrics to Watch in Q1 FY26
As the company releases its results, investors and analysts should closely monitor the following performance drivers:
1. Sales Trends in Metro vs Non-Metro Markets
Urban centers continue to be the biggest revenue contributors for DMart. However, growth in Tier 2 and Tier 3 cities will determine how successfully the company expands its retail footprint.
2. Cost Management Amid Expansion
DMart’s ability to maintain its low-cost model while adding new stores rapidly is critical. Expenses related to logistics, staffing, inventory, and leasing must be monitored to assess margin sustainability.
3. Store Network Growth Strategy
With 9 new stores added in Q1 alone, investors should evaluate the company’s pipeline for upcoming store launches. Higher frequency of store additions may boost top-line growth but could pressure operating margins in the short term.
4. Quick Commerce & Omnichannel Presence
Although DMart has traditionally been cautious with e-commerce, the rise of quick commerce players has intensified competition. Investors will be looking for management commentary on online sales contribution and digital initiatives.
Sector Outlook and Competitive Landscape
The Indian retail sector is witnessing strong growth driven by rising disposable incomes, evolving consumer behavior, and higher demand for convenience. However, competition is intensifying with the entry of deep-pocketed players like Reliance Retail, Tata Group (through BigBasket), and quick commerce startups such as Blinkit and Zepto.
Despite these developments, DMart has maintained its edge through:
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Everyday low pricing (EDLP) model
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Efficient supply chain and vendor relationships
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In-house logistics and warehousing infrastructure
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Conservative debt and cash management policies
The company’s preference for owned real estate and focus on value retailing continues to distinguish it from other players in the organized retail space.
Management Commentary Expected
DMart’s management commentary will be vital to assess:
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Expansion plans for FY26 and beyond
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Gross margin trends
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Competitive responses to online retail players
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Inflation impact on procurement and pricing
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Customer basket behavior across cities
Any updates on the company’s e-commerce platform, DMart Ready, will also be under the spotlight, particularly how it integrates with the company’s offline network.
Final Thoughts
DMart’s Q1 FY26 preview paints a picture of steady operational growth driven by store expansion and consistent consumer demand. The anticipated 16–18% revenue increase, 8% profit growth, and 10.5% EBITDA rise signal the company’s strength even amid macroeconomic headwinds and rising competition.
While short-term stock performance has been mixed, DMart’s long-term fundamentals remain intact. The management’s disciplined execution, efficient cost control, and measured approach to expansion continue to support its growth trajectory.
Investors with a long-term horizon may find DMart to be a resilient business with a strong moat in India’s organized retail sector. As it announces its Q1 FY26 results, all eyes will be on how the company balances growth with profitability in a rapidly evolving consumer landscape.
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