DMart Shares Fall Over 2% Despite 11% Profit Growth in Q1FY27; Should Investors Buy?

DMart's parent firm Avenue supermart saw its shares decline in Monday's trading session after the company posted a slow sales growth in the first quarter of FY27.

Shares of Avenue Supermart opened at Rs. 3950 apiece on the NSE, down by 69 points. However, the stock recovered slightly during the session and was trading at Rs. 4000, down 1.99% at the time of writing.

Avenue Supermart Q1FY27 Results

DMart reported an 11.3% jump in its net profit, which surged to 860 cr for Q1FY27 from 772.9 cr in the same quarter last year.

The consolidated revenue of the company rose 14.8% to Rs. 18,794.5 crore in the Q1FY27, as compared to 16,359.70 crore in the corresponding quarter last year

The total expenses jumped to Rs. 17,637.2 crore from Rs. 15,321.7 crore a year earlier. Additionally, the company's profit before tax surged by 11.88% YoY to Rs 1,183.14 crore.

Consolidated EBITDA surged by 15.39% YoY to Rs 1,499 crore in Q1 FY27 from Rs 1,299 crore in the corresponding quarter last year. The EBITDA margin improved marginally to 8.0% from 7.9%.

DMart Share Price Target

HDFC Securities has given an 'Add' rating on Avenue Supermarts (DMart) with a target price of Rs. 4,150, despite trimming its FY27 and FY28 earnings estimates by around 3% and 2%, respectively.

The brokerage said that "the retailer's Q1FY27 standalone revenue grew 15.1% YoY while same-store sales growth moderated to 5.5% from 7.1% a year earlier. Metro store growth was largely flat, although non-metro markets continued to perform well with 14-15% like-for-like growth.

About DMart

Headquartered in Mumbai, Avenue Supermarts Limited is a hypermarket chain that sells groceries, household goods, and daily essentials at low prices. The company was founded by Radhakishan Damani and has built its business around value retailing.

It operates under the DMart brand and focuses on offering products at competitive prices for everyday shopping.

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