Avenue Supermarts slides 5% after Q1 update; earnings date announced, analysts flag concerns

Shares of Avenue Supermarts, the operator of the supermarket chain D-Mart, slipped as much as 4.87% to hit a low of ₹3,982.70 apiece on the NSE in the early trade on Friday, July 3, following the company's business update for the June (Q1 FY27) quarter.

Besides, the company has also announced the schedule for its Q1 FY27 earnings release.

In a regulatory filing, the company said its Board of Directors will meet on Saturday, July 11, 2026, to, among other things:

• Consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026.
• Consider raising funds through the issuance of debt securities on a private placement basis, up to such limit as the Board may deem appropriate and approve.

DMart Q1 business updates

In a separate filing, the company shared its business update for the June quarter.

In its Q1 FY27 business update, Avenue Supermarts said its standalone revenue from operations rose 15% year-on-year to ₹18,343.49 crore for the quarter ended June 30, 2026, compared with ₹15,932.12 crore in the corresponding quarter last year.

The company had 503 stores as of June 30, 2026, including one outlet in Sanpada, Navi Mumbai, Maharashtra, which remains temporarily closed to customers due to reconstruction.

Investors should note that the revenue figures disclosed in the business update are provisional. The company will release the audited financials along with its Q1 FY27 earnings announcement.

What analysts said on D-Mart after the Q1 business update

Morgan Stanley said D-Mart’s 15% revenue growth in Q1 FY27 came in below expectations, especially after a strong fourth quarter. It termed the update a weak print, particularly compared with pre-sales updates from other retailers such as V-Mart, V2 Retail and Bazaar Retail, where growth momentum has remained strong.

Morgan Stanley believes the weaker-than-expected growth could lead to near-term underperformance in the stock. It added that margins will be a key monitorable during the earnings announcement. The investment firm is building in an 8% EBITDA margin (up 120 basis points quarter-on-quarter and flat year-on-year), but cautioned that the weaker top-line growth also poses risks to margin performance.

Analysts at Goldman Sachs noted that Q1 FY27 revenue growth slowed despite a large number of store openings at the end of Q4 FY26 and higher FMCG inflation. It also highlighted that store additions during Q1 FY27 were lower than in previous years.

According to Goldman Sachs, the key upside risks to its cautious stance are as below.

• Faster-than-expected store roll-out.
• Successful expansion of DMart Ready, helping offset online competitive pressures on the brick-and-mortar business.
• A moderation in the pace of e-commerce adoption in grocery retail.
• A stronger-than-expected recovery in discretionary demand among middle-income consumers, leading to faster growth for Avenue Supermarts.

India's retail market outlook

India's retail market is expected to more than double to ₹210-₹215 lakh crore in 2035 from ₹90-₹95 lakh crore in 2025 as the country continues to outperform major global economies and is on track to become the world's third-largest economy, according to a report released in February 2026.

As India's retail sector enters its next phase of growth, success will favour those who combine clarity of focus with disciplined execution and AI-led transformation, as per the report -- 'Winning Codes for Retail 2035: Capturing the Rs 200 Trillion Prize' -- released jointly by Boston Consulting Group (BCG) and the Retailers Association of India (RAI) at the Retail Leadership Summit 2026.

Retailers who embrace structural change across consumer engagement, operating models, and talent will be best positioned to capture disproportionate value in the journey towards a ₹200 lakh crore retail market, it said.

Explicit trade-offs and disciplined execution are critical to delivering a differentiated customer value proposition and sustaining profitable growth, the report stated.

The findings underscore the increasingly complex and context-driven nature of consumer decision-making, alongside the growing influence of technology, especially artificial intelligence, in shaping every stage of the shopper journey, it said.

D-Mart Q4 FY26 earnings

Avenue Supermarts Ltd reported a 19.17% year-on-year (YoY) rise in its consolidated net profit to ₹656.42 crore in the March quarter of FY26.

The company had posted a net profit of ₹550.79 crore in the January-March quarter a year ago, according to a regulatory filing from Avenue Supermarts.

Revenue from operations increased 18.9% to ₹17,683.86 crore during the quarter under review, from ₹14,871.86 crore in the corresponding quarter last fiscal.

"PAT (profit after tax) margin stood at 3.7% in Q4FY26 as compared to 3.7% in Q4FY25," the company said in its earnings statement on Saturday.

Total expenses of Avenue Supermarts in the March quarter rose 18.5% to ₹16,797.86 crore.

Avenue Supermarts' total income, which includes other income, was at ₹17,702.03 crore, up 18.83% in the March quarter.

In the entire FY26, Avenue Supermarts registered a profit of ₹2,969.86 crore, up 9.7%. Total consolidated income rose 15.8% to ₹68,894.84 crore during the financial year ended March 2026.

Commenting on the performance of the brick-and-mortar business, Managing Director & CEO Anshul Asawa said that gross margins saw slight improvement, and costs were largely in line with business growth.

Two-year-old and older D-Mart stores grew by 10.8% during Q4 FY26 as compared to 8.1% in Q4 FY25.