13 Jul , 2026 By : Debdeep Gupta
Shares of Avenue Supermarts, which operates the DMart retail chain, fell 4 percent in early trade on Monday after its April-June quarter earnings and management commentary reinforced concerns over slowing growth in key metro markets amid intensifying competition from quick commerce. Brokerages retained a cautious stance on the stock.
DMart (Avenue Supermarts) stock declined as much as 3.98 percent to Rs 3,918.5 in early trade, making it the top loser on both the BSE 500 and NSE 500 indices. It was also among the most actively traded stocks on the NSE. Despite Monday's decline, the stock remains up 6.2 percent so far in 2026.
The sell-off followed the company's June-quarter results, where consolidated net profit rose 11.3 percent year-on-year to Rs 860.6 crore, while revenue increased 14.9 percent to Rs 18,794 crore. EBITDA grew 15.4 percent to Rs 1,499 crore, with EBITDA margin remaining largely stable at 7.97 percent versus 7.94 percent a year earlier.
While the quarter delivered resilient profitability, brokerages said slowing same-store sales growth and increasing pressure from quick commerce in metro markets remain key concerns.
Brokerages remained broadly cautious after the results, with Goldman Sachs and Citi reiterating Sell ratings, JPMorgan maintaining Neutral, and Jefferies retaining Hold. Most analysts said slowing same-store sales growth and increasing competition from quick commerce in metro markets continue to weigh on the investment case despite stable operating margins.
Analysts also highlighted flat growth in older metro stores, while noting that better gross margins helped support profitability during the quarter. Some brokerages also pointed to DMart Ready's reduced footprint and trimmed their earnings estimates, citing a weaker medium-term growth outlook.
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