DMart promoter Avenue Supermarts shares soar over 8% after opening new store in Punjab

Shares of Avenue Supermarts Ltd, the parent company of DMart, surged 8.13% to an intra-day high of ₹4,324.00 apiece on the National Stock Exchange (NSE) on Wednesday, July 30.

This sharp surge in the company's stock price comes a day after it announced the opening of a new store in Pathankot, Punjab, on Tuesday. Earlier this month, the company opened another store in Tathawade, Pune.

With the new DMart opening, the firm's total store count stands at 426, compared to 424 as of June 30, 2025. It had opened nine stores in the first quarter.

Avenue Supermarts Q1 results

Earlier this month, the company reported a marginal year-on-year (YoY) fall in its consolidated net profit to ₹773 crore in the June quarter of the 2025-26 financial year (Q1FY26). In the corresponding period of the same year, its profit was at ₹774 crore.

However, its revenue from operations stood at ₹16,358.7 crore during the quarter under review, jumping 16.3% YoY from ₹14,069 crore in the first quarter of FY25.

At an operational level, Avenue Supermarts’ EBITDA (earnings before interest, tax, depreciation and amortisation) surged 6.4% YoY to ₹1,299 crore in Q1FY26, compared to ₹1,221.2 crore in Q1FY25. Its EBITA margin contracted to 7.94% from 8.68% in the same quarter of the previous fiscal year.

Commenting on the results, Neville Noronha, CEO & Managing Director of Avenue Supermarts, said: "Revenue growth impact of approximately 100-150 bps was primarily due to high deflation in many staples and non-food products. Gross margins are lower as compared to the same period in the previous year, due to continued competitive intensity within the FMCG space. Operating costs are higher due to our efforts on improving service levels, capacity building and inflation at entry-level wages," he added.

The shares of Avenue Supermarts closed 6.75% higher at ₹4,269 apiece on Wednesday.

It has a total market capitalisation of ₹2.78 lakh crore, as of July 30, 2025, as per data on the NSE.