{"id":57783,"date":"2025-07-14T16:26:18","date_gmt":"2025-07-14T10:56:18","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=57783"},"modified":"2025-11-06T23:23:32","modified_gmt":"2025-11-06T17:53:32","slug":"avenue-supermarts-share-price-falls-post-q1-results-time-to-buy","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/avenue-supermarts-share-price-falls-post-q1-results-time-to-buy\/","title":{"rendered":"Avenue Supermarts Share Price Falls Post Q1 Results. Time to Buy?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p><\/p>\n\n\n\n<p><a href=\"https:\/\/www.equentis.com\/blog\/from-%E2%82%B982-lakh-cr-to-%E2%82%B9190-lakh-cr-in-2034-4-key-drivers-of-indias-retail-growth\/\">India\u2019s retail sector<\/a> isn\u2019t just about shopping \u2014 it\u2019s a major engine of the country\u2019s economy. The sector powers nearly 10% of our GDP and employs millions of people.<\/p>\n\n\n\n<p>When consumption booms, GDP flies. When it slows, the entire economy feels it.<\/p>\n\n\n\n<p>And at the heart of India\u2019s organised retail space is one <a href=\"https:\/\/www.equentis.com\/blog\/what-is-stock-market-and-how-it-works\/\">stock market<\/a> favourite: Avenue Supermarts, the company behind DMart \u2014 a name that needs no introduction to Indian households or investors.<\/p>\n\n\n\n<p>Over the weekend, the company posted its earnings for the quarter ended June 2025.<\/p>\n\n\n\n<p>In early trade today, <a href=\"https:\/\/www.equentis.com\/stocks-screener\/dmart-share-price\">Avenue Supermarts share price<\/a> declined after investors digested the results and brokerages highlighted their concerns. With this fall, the stock is now down 20% in a year.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>Avenue Supermarts Share Price &#8211; 1 Year<\/strong><\/p>\n\n\n\n\n\n<p>Let\u2019s take a detailed look into its earnings for the first quarter and examine whether a rebound is on the cards.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\">Avenue Supermarts Q1 Results<\/h1>\n\n\n\n<p>For the quarter ended June 2025, Avenue Supermarts, which runs the <a href=\"https:\/\/www.youtube.com\/watch?v=SFwu2UMDS6w\" target=\"_blank\" rel=\"noopener\">Dmart value chain<\/a>, reported a 16% YoY growth in its standalone revenue while its EBITDA grew 8%, missing street estimates.<\/p>\n\n\n\n<p>The company\u2019s management indicated that revenue growth was lower due to deflation in several categories.<\/p>\n\n\n\n<p>The company\u2019s gross margins came at 14.6% due to a decline in the share of higher-margin products, higher operating costs, and continued competition from the <a href=\"https:\/\/www.equentis.com\/blog\/fmcg-consumer-durables-revenue-to-reach-615-87-bn-by-2027\/\">FMCG sector<\/a>.<\/p>\n\n\n\n<p>As a result, the company posted a flat net profit for the quarter under review.<\/p>\n\n\n\n<p>During the quarter, Dmart added 9 new stores. Its annualized revenue per store<\/p>\n\n\n\n<p>rose 2% YoY.<\/p>\n\n\n\n\n\n\n\n<h1 class=\"wp-block-heading\">About Avenue Supermarts<\/h1>\n\n\n\n<p><a href=\"https:\/\/www.equentis.com\/blog\/dmart-share-price-all-you-need-to-know\/\">Avenue Supermarts<\/a> runs the national supermarket chain DMart \u2014 which provides value-conscious customers with home and personal use products under one roof. The company operates across three categories:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Foods<\/li>\n\n\n\n<li>Non-Foods (FMCG)<\/li>\n\n\n\n<li>General Merchandise &amp; Apparel<\/li>\n<\/ul>\n\n\n\n\n\n<h1 class=\"wp-block-heading\">Outlook for Avenue Supermarts<\/h1>\n\n\n\n<p>The muted performance by Avenue Supermarts has raised concerns about margin pressures in a competitive retail environment.<\/p>\n\n\n\n<p>Due to rising competition from <a href=\"https:\/\/www.equentis.com\/blog\/amazon-competes-with-zepto-blinkit-instamart-with-300-dark-stores\/\">quick commerce players<\/a>, and a surge in wages of entry-level positions, margins have tightened as can be seen from its numbers.<\/p>\n\n\n\n<p>Going ahead, the pace of store additions and margin improvement will be the key monitorables.<\/p>\n\n\n\n<p>The company plans to add 40\u201350 stores every year, which means there will be visibility on revenue growth.<\/p>\n\n\n\n<p>However, keeping an eye on margins is crucial \u2014 especially in the foods and FMCG segments, where competition from quick commerce players is intensifying.<\/p>\n\n\n\n<p>Even in the general merchandise and apparel segment, competition is gradually picking up as players like Reliance Retail and Aditya Birla Retail continue to expand their footprint.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.equentis.com\/blog\/dmart-avenue-supermarts-share-price-fell-by-9-47-5-major-causes-behind-the-decline\/\">Retail is a tough business<\/a> \u2014 and even well-run companies like DMart aren\u2019t immune to headwinds. While the company remains fundamentally strong, it currently faces challenges on both growth and margin fronts.&nbsp;<\/p>\n\n\n\n<p>Happy Investing.<\/p>\n\n\n\n<p class=\"has-ast-global-color-5-color has-vivid-red-background-color has-text-color has-background has-link-color wp-elements-499db7743cd6e0732dbcf68b165a209c\">Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis &#8211; Research &amp; Ranking. We will not be liable for any losses that may occur. <a href=\"https:\/\/www.equentis.com\/blog\/mukul-agrawal-portfolio-shareholdings-investments-all-you-need-to-know\/\">Investments<\/a> in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by <a href=\"https:\/\/www.equentis.com\/blog\/sebi-registered-investment-advisor-meaning-eligibility\/\">SEBI<\/a>, membership of BASL &amp; the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s retail sector isn\u2019t just about shopping \u2014 it\u2019s a major engine of the country\u2019s economy. The sector powers nearly [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":57784,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[948,9],"tags":[1747,1746,1698,231],"class_list":["post-57783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market-news","category-investing","tag-avenue-supermarts","tag-dmart","tag-investing-in-stocks","tag-long-term-stocks"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/57783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=57783"}],"version-history":[{"count":5,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/57783\/revisions"}],"predecessor-version":[{"id":59711,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/57783\/revisions\/59711"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/57784"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=57783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=57783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=57783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}