Avenue Supermarts Ltd (DMART)

Consumer Services · Retail · NSE · Updated 1 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹3,830 ↓ 19.41% (1Y)

🎯 Key Takeaways

Avenue Supermarts Ltd (DMART) is in a phase of controlled expansion with disciplined profitability, operating in a mature retail segment but still capturing market share through value-driven pricing and store network growth. The company maintains strong returns on capital and low leverage, yet faces pressure from softening consumer demand reflected in recent sales trends and a declining stock price over the past year.
Revenue grew 6.3% QoQ to ₹18,795 in Q1FY27.
⚠️ Margin compression in core retail operations due to softening consumer demand and competitive pricing pressures, despite stable revenue trends.

Market Cap

₹2.50 L Cr

P/E Ratio

81.5

P/B Ratio

10.21

ROE

12.5%

ROCE

17.2%

Debt/Equity

0.04

Promoter

74.5%

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📖 The Story

Avenue Supermarts Ltd (DMART) is in a phase of controlled expansion with disciplined profitability, operating in a mature retail segment but still capturing market share through value-driven pricing and store network growth. The company maintains strong returns on capital and low leverage, yet faces pressure from softening consumer demand reflected in recent sales trends and a declining stock price over the past year.

📰 What's Happening

In the last three quarters, DMART has expanded its omni-channel capabilities and secured shareholder approval for up to Rs. 35,000 crores in related party transactions with its e-commerce subsidiary, Avenue E-Commerce, signaling strategic push into digital retail. Additionally, the company issued two short-term commercial papers totaling Rs. 500 crores in August 2026 (₹300 crore at 6.70% and ₹200 crore at 6.50%), indicating proactive liquidity management amid rising working capital needs. The AGM also reappointed key directors and cleared audited FY2026 financials, reinforcing governance continuity while enabling capital allocation for future growth initiatives.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	16,676	18,101	17,684	18,795
Operating Profit	960	1,195	927	1,212
OPM %	5.8%	6.6%	5.2%	6.5%
Net Profit	685	856	656	860
EPS	₹10.53	₹13.15	₹10.09	₹13.20

Operating revenue has shown volatility but remains broadly stable, with Q1FY27 (Jun 2026) revenue at ₹18,795 crores slightly up from ₹18,101 crores in Dec 2025, though operating margin dipped to 6.5% from 6.6% in the prior quarter, suggesting margin pressure despite revenue resilience. Net profit and EPS rose to ₹860 crores and ₹13.2 in Q1FY27 from ₹656 crores and ₹10.09 in Mar 2026, indicating improved profitability quarter-on-quarter, likely driven by cost optimization and scale benefits from expanded store footprint.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue or margin growth in the latest filings, but the approval of large-scale related party transactions and continued debt issuance suggests confidence in deploying capital toward e-commerce integration and store expansion. The repeated use of commercial paper at elevated coupons (6.50–6.70%) may reflect rising funding costs or a strategic shift toward short-term market financing, which management views as a flexible tool for working capital optimization.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	651	651	651	652
Reserves	19,487	20,777	22,239	23,811
Borrowings	713	820	1,609	965
Total Liabilities	23,040	24,320	26,914	29,524
Fixed Assets	14,435	16,099	17,538	20,083
Investments	87	3	3	11
Total Assets	23,040	24,320	26,914	29,524

The balance sheet shows a steady rise in total assets from ₹24,320 crores in Mar 2025 to ₹29,524 crores in Mar 2026, driven by expansion in store network and investments. However, borrowings have increased from ₹820 crores to ₹965 crores, and with equity flat at ~₹651 crores, the equity base is not keeping pace with asset growth, implying leverage is rising modestly. Reserves have grown from ₹20,777 crores to ₹23,811 crores, indicating retained earnings are supporting capital intensity without diluting shareholders.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2026
Operating	+3,467
Investing	-4,207
Financing	+288
Net Cash Flow	-452

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	74.7%	74.7%	74.5%	74.5%
FII	8.7%	8.7%	9.0%	9.2%
DII	9.1%	8.9%	8.8%	8.7%
Public	4.4%	4.6%	6.4%	6.4%
# Shareholders	5,85,510	5,99,296	5,73,764	5,42,175

Promoter holding remains stable near 74.5%, indicating confidence and alignment. However, Foreign Institutional Investor (FII) ownership has declined slightly from 9.23% in Q1FY27 to 9.0% in Q4FY26, while Domestic Institutional Investor (DII) shareholding has also dipped from 9.09% to 8.74%, suggesting foreign and domestic institutions are gradually reducing exposure. The growing number of retail shareholders (5.42 lakh) reflects broadening retail interest but may contribute to higher volatility.

⚖️ Peer Comparison — Retail

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
DMART	2.50 L Cr	81.5	17.2%	12.5%	0.04
TRENT	1.54 L Cr	62.6	33.9%	26.0%	0.07
VMM	50,388	56.4	21.4%	13.9%	0.00
CARTRADE	14,472	62.2	14.4%	11.4%	0.00
ABLBL	10,328	58.4	26.4%	12.5%	0.59
FIRSTCRY	9,700	—	0.2%	-3.8%	0.12
MEDPLUS	8,122	38.5	19.8%	10.7%	0.00
V2RETAIL	8,064	6.2	28.7%	19.9%	0.28
ETHOSLTD	7,705	73.9	17.6%	10.8%	0.00
AVL	7,628	54.8	22.4%	20.2%	0.48

🔗 Peer Stock Analyses

TRENT VMM CARTRADE ABLBL FIRSTCRY

⚠️ Risk Factors

1. Margin compression in core retail operations due to softening consumer demand and competitive pricing pressures, despite stable revenue trends. 2. Rising leverage from short-term debt issuance (₹500 crores in August 2026) increases financial risk if operating cash flows weaken. 3. Large-scale related party transactions with Avenue E-Commerce expose the company to governance and valuation risks if e-commerce growth underperforms. 4. Flat promoter and institutional ownership trends amid declining stock price may limit investor support during downturns.

📋 Recent Filings

🧠 Analyst's Read

DMART remains a cash-generative retail business with strong unit economics, but near-term growth hinges on successful integration of its e-commerce arm and sustained consumer spending. Investors should monitor quarterly sales trends, margin trajectory, and the pace of related party transaction utilization for clarity on capital allocation priorities.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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