DMart share price jumps 5% as store count hits 500

The move: DMart rebounds after weeks of selling

Avenue Supermarts (DMart) saw a sharp relief rally after a prolonged correction, with the stock rising nearly 5% in one session and extending gains across three consecutive sessions. During Wednesday’s trade, the stock touched an intraday high of ₹3,844.70, marking its strongest single-day rise in about five months. The bounce came after weeks of steady selling pressure that intensified following the company’s December-quarter business update. Investors have been tracking the stock closely because the recent decline was steep even as the company continued to report double-digit revenue growth. The latest up-move stood out for both its timing and the spike in trading volumes. Even after the rebound, the stock remains materially below its recent peak levels, underlining how sharp the earlier correction had been.

Store launches provided a near-term trigger

A key near-term trigger cited in the market was the cadence of store launches. Avenue Supermarts informed exchanges that it opened a new DMart store at Ullal in Dakshina Kannada, Karnataka, on March 6, 2026. Separately, market commentary noted that the company announced 20 store additions over three calendar days, lifting the fourth-quarter store-opening tally. The market has been sensitive to store-addition momentum because it directly shapes DMart’s growth narrative and, in turn, the valuation investors are willing to pay. The renewed focus on openings comes alongside the company’s stated push to expand its footprint, including a stronger presence in Northern India, as it adapts to evolving consumer behavior and intensifying competition.

Volumes and price action signaled a shift in sentiment

Trading activity rose alongside the price.

• BSE volume was around 82,000 shares versus a two-week average of 39,000.
• NSE volume was about 11.54 lakh shares during the session.

Higher volumes do not confirm a lasting trend by themselves, but they often indicate broader participation in the move. For DMart, this mattered because the rally followed weeks of persistent selling after the quarterly update. The rebound offered short-term relief for shareholders who had seen the stock drift toward levels last seen in 2025.

The larger backdrop: from September highs to a deep correction

The rebound followed a sustained slide from earlier highs. The stock had hit a one-year high of ₹4,949 in September before selling pressure pulled it lower. From that September high, the stock was down 23% at one point, and from the record high of ₹5,900 it was down about 35.2%. The broader performance context in the coverage also pointed to a 6.20% gain for 2025 after a 12.8% decline in 2024. This sequence left investors weighing whether the recent move is a short-term reversal or the start of a more durable recovery tied to execution on growth drivers.

Q3FY26 snapshot: growth continued but momentum moderated

For the quarter ended December (Q3FY26), the company reported revenue from operations of ₹17,612.62 crore, up 13.15% year on year from ₹15,565.23 crore in Q3FY25. Another report on the quarter cited revenue of ₹18,100.88 crore (up 13.3%) and net profit of ₹855.92 crore (up 18.3% year on year). Profitability indicators referenced in the same coverage included an EBITDA margin of 8.1% (versus 7.6% a year ago), PAT margin of 4.7% (versus 4.5%), and gross margin of 14.6% (a 50 basis-point year-on-year improvement). Same-store sales growth (SSSG) was cited at 5.1% in Q3 FY26 in one section of the material, and 5.6% in another. The common thread across the reports was that DMart remained in growth mode, but investors noted a moderation compared with earlier quarters.

Store additions: slowdown in Q3, then acceleration into Q4

Store momentum became a key swing factor in market sentiment. In Q3FY26, DMart added 10 stores, and total stores added so far in FY26 were cited as 27 in one update. Total store count across India was stated as 442 in the same context. Later updates highlighted a sharp acceleration in Q4, including 58 store additions in the quarter, described as the highest ever in any quarter, implying FY26 openings of 85 stores.

By March 31, 2026, Avenue Supermarts reported that the total number of stores stood at 500, with one store at Sanpada, Navi Mumbai, currently closed for customers due to reconstruction. For investors, this shift from a slower Q3 cadence to a faster Q4 cadence helped explain the rapid change in near-term sentiment.

Q4FY26 business update: revenue growth and index-level comparisons

In the Q4FY26 business update, Avenue Supermarts reported standalone revenue from operations of ₹17,204.5 crore for the quarter ended March 31, 2026, compared with ₹14,462.39 crore a year earlier. On the session following the update, the stock rose 3.4% on the BSE and logged an intraday level of ₹4,512.6 per share, while the Sensex was down 0.45% at 72,988.

The stock’s quoted trading levels varied across the material due to different reference points, including mentions of around ₹3,800 in April 2026 and around ₹3,450 on NSE in April 2026. The same set of notes also cited a 52-week range of ₹3,300 (low) to ₹5,000 (high), and a trailing P/E of approximately 68x, reflecting that valuation remains central to how the market is pricing incremental growth.

Analyst takes and valuation debate

Brokerage views in the material show a wide spread. Motilal Oswal reiterated a Buy and raised its target to ₹5,000 from ₹4,600, arguing that store additions remain the key trigger and pointing to white spaces in UP, Bihar, and West Bengal. Another segment noted a target band of ₹4,500-5,200 as a 12-month consensus range, while a separate section cited an average target price of ₹4,374. There were also mixed recommendations: out of 29 analysts, 10 Buys, 11 Holds, and eight Sells.

Valuation remains contested. One snapshot pegged the P/E at around 89.08x as of March 26, 2026, while another cited trailing P/E near 68x. The debate is amplified by quarterly volatility discussed in the material, including a view that Q4 revenue growth accelerated to 19% after 13% in Q3, and that SSSG rose to 10% in Q4 versus 6-7% in the preceding two quarters.

Competition, costs, and the operating levers DMart is leaning on

The company’s strategic priorities, as described, include expanding its store footprint with an emphasis on Northern India, improving service quality, and strengthening private label offerings to protect margins. At the same time, it is operating under pressure from quick commerce and large competitors, with Blinkit and Swiggy Instamart explicitly referenced as competing for the grocery wallet, alongside Reliance JioMart.

Cost pressures were also highlighted: rising operational costs, wage inflation, and the impact of lease and depreciation costs as the company increases focus on rental properties. On the digital side, DMart Ready’s growth was cited as slowing to 20% from 25% year on year, alongside a reduced operating presence from 25 cities to 19 cities in one report, even as other notes described the platform as available in 30+ cities.

Macro uncertainty was also referenced, including a 26% US reciprocal tariff on Indian goods announced on April 2, 2026, described as a broader overhang for Indian equities through FII outflows and earnings estimate revisions.

Key data points at a glance

What investors will watch next

Avenue Supermarts is scheduled to announce its Q4 FY26 (January to March 2026) financial results on April 25, 2026. The results and management commentary will be watched for clarity on same-store sales momentum, store-opening pace, and how costs such as rentals, depreciation, and staffing are trending as the footprint expands. Investors will also track how DMart balances physical expansion with its online channel in a market where quick commerce is pushing up service expectations. Near-term stock moves have shown that the market is highly sensitive to incremental changes in store-addition visibility and SSSG direction.

The recent rally has improved near-term sentiment, but the broader question remains execution: converting a faster pace of store openings into sustained growth while preserving the value-led economics that underpin DMart’s positioning.