The share price of Avenue Supermarts, which owns and operates DMart, has been on an upward trajectory lately. In the last one month, Avenue Supermarts share price surged over 26%. This is particularly striking given the sharp correction seen after the shares hit an all-time high of Rs 4,949.50 on September 04, 2025. Soon after that, the stock had started to move downwards, declining over 24% between September 4, 2025, and March 23, 2026.
What had changed after March 2026? Well, the company reported its provisional business update for the fourth quarter of FY26.
DMart: Brokerages on Q4 growth
Based on that, domestic brokerage house JM Financial pointed out that DMart’s “store additions (is) a positive surprise.” Another brokerage firm, Motilal Oswal Financial, said that Avenue Supermarts’ revenue growth trajectory improved to 19% YoY in Q4 FY26. The reason was one and only, acceleration in store additions (though most of it was back-ended) and likely recovery in SSSG (Same Store Sales Growth), as against 6% in the last few quarters.
DMart in Q4: Expansion strategy shift
DMart added 58 stores quarter-on-quarter, compared to an expectation of 33, taking the total store count to 500. Notably, 34 stores were added in the last eight days of Q4 alone. “This acceleration signals a broader strategy shift of stepping up expansion, particularly in the underpenetrated northern market,” said Motilal Oswal.
The store openings were the highest-ever in any quarter, implying total openings in FY26 of 85 stores, which is the highest ever in any year.
The store openings also highlight that the management stood firm to their guidance. DMart, in its last analyst call, had highlighted accelerating store openings, which are finally starting to show up.
Moving forward, high margins are what keep businesses like Avenue Supermarts profitable. Despite expanding robustly, the company’s operating margins remained steady at 8% over the past three years.
DMart: Tracking growth trajectory between FY23-FY25
For FY25, the company’s EBITDA came in at Rs 4,543 crore; in FY24, it was Rs 4,099 crore; and in FY23, it stood at Rs 3,659 crore.
Despite a challenging environment marked by pressure in GM&A sales and rising competition from other value retailers and Q-commerce players, the company has maintained its overall Gross and EBITDA margins at approximately 15% and 7-8%, respectively, over the past several quarters. “This reflects D-Mart’s strong execution capabilities, robust business model (EDLP), and operational efficiencies,” said Axis Securities.
| FY23 | FY24 | FY25 | |
| Operating margin | 8% | 8% | 8% |
| Net profit | 2,378 | 2,536 | 2,707 |
| ROCE | 20% | 19% | 18% |
Smooth transition of top leadership
From here on, the company’s former managing director and chief executive officer, Ignatius Navil Noronha, concluded his 20-year-long term on January 31, 2026. He was succeeded by former Unilever executive Anshul Asawa as CEO and MD for a three-year term. Also, Kalpana Unadkat became Chairperson, succeeding Chandrashekhar Bhave.
Apart from store expansion and change in leadership, the overall improving consumer demand, supported by stable macroeconomics, is expected to further support these initiatives and drive growth in high-margin general merchandise and apparel categories. Additionally, a reduction in the GST rate has spurred consumption and indirectly supported discretionary spending.
Avenue Supermarts’ share price performance
The stock price of DMart’s parent company has surged 2% in the last five trading sessions. The stock has given a return of 25% in the past one month and 7% in the last six months. The stock has increased 5% over the previous one year.
