TUESDAY, 20 OCTOBER 2026

QHAAT

Today in Indian Retail

Retail

DMart adds 15 stores to 518 as shares hit 3-year low

Revenue grew 18% and LFL hit 9.5% in Q2, yet margins and stock pressure leave merchants watching productivity hard.

, Retail correspondent··4 min read

Empty supermarket aisle with stacked grocery cartons under fluorescent lights
Empty supermarket aisle with stacked grocery cartons under fluorescent lights

Avenue Supermarts added 15 DMart stores in the July-September quarter to reach 518 outlets, up 20% year-on-year, even as the stock fell to a three-year low near ₹3,323 on 16 October after weaker-than-expected profitability. Like-for-like growth recovered to 9.5% and revenue rose 18%, but EBITDA margins contracted roughly 30 basis points.

DMart's Q2 store additions accelerated from just three in the prior quarter, taking the network to 518. Revenue growth picked up to 18% year-on-year while LFL sales improved to 9.5% from 5.5% in Q1. The stock has corrected 28% from its April high of ₹4,642 and slipped 9% over seven sessions.

Shop-floor managers now track smaller basket sizes in dense metro catchments where quick commerce bites hardest. Entry-level wage inflation pushed cost of retailing per square foot up 3%, squeezing the till on everyday grocery runs that once padded margins.

Store additions accelerated but margins contracted on wage inflation and weaker general merchandise mix.

The pressure helps pure-play value rivals and private-label specialists who can undercut on staples, while larger planned purchases at DMart remain more resilient. Newer tier-1 and tier-2 stores are outperforming the chain average, according to broker notes.

Watch Q3 festive window numbers and any update on the 15% annual area addition pipeline. Brokerages have trimmed FY27-28 estimates by 1-3% and stay Neutral or Hold until mature-store productivity stabilises.

Filed under Retail·Meera Iyer

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