Shares of Avenue Supermarts, which operates the retail chain DMart, are expected to attract investors during Monday’s session (5 January), following the release of the company’s December quarter business update.

In its filing to the exchanges after market hours today, the company reported standalone revenue from operations of ₹17,612.62 crore for the December quarter (Q3FY26), reflecting an increase of 13.15% from ₹15,565.23 crore in the same quarter of the previous fiscal year.

During the quarter, the company added 10 new stores, taking its total store count to 442 (including one store at Sanpada, Navi Mumbai, Maharashtra, which is currently closed for customers due to reconstruction), according to the regulatory filing.

For the September quarter (Q2FY26), the company reported a 3.85% year-on-year (YoY) rise in its consolidated net profit at ₹684.85 crore, while revenue from operations grew 15.45% YoY to ₹16,676.30 crore in the same quarter.

Following the company’s Q2 earnings, brokerages turned mixed, with some retaining their bullish outlook while others reduced their earnings estimates. On a more optimistic note, global brokerage firm CLSA, in its recent report, picked DMart as one of its top bets for 2026, framing it as a long-term free cash flow story.

Drawing comparisons with global retailers such as Walmart and Costco, CLSA noted that rapid store expansion typically results in negative or minimal free cash flow in the early years.

DMart is expected to remain in this phase in the near term, with store additions projected at 15–20% annually and management visibility extending to 2,200 stores. CLSA maintained that DMart’s long-term demand environment remains favourable.

The brokerage also highlighted that quick commerce is expected to account for less than 20% of urban consumption even by FY35, leaving significant room for DMart’s physical retail model.

To further add value, DMart is expanding its private-label portfolio, offering products priced 40–50% lower than branded alternatives and, in some cases, even at one-third of the price, added the brokerage.

DMart share price trend

The company’s shares have remained under significant selling pressure since September 2025, losing 22% from that level. This followed a prolonged bull run between February and August 2025, during which the stock had rallied 40%.

In terms of yearly performance, the stock finished 2025 with a modest growth of 6.20%, recovering from a 12.8% drop in 2024. From its record high of ₹5,900, the stock is currently down 37%.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.