DMart Shares Surge 8% After Hitting 500-Store Milestone

DMart Hits 500-Store Mark, Shares Rally

Avenue Supermarts Ltd, the operator of the popular retail chain DMart, saw its shares jump significantly on April 1, 2026, marking the first day of the new financial year with strong investor confidence. The stock surged as much as 8.37% during intraday trading on the BSE, driven by the company's announcement of reaching a major operational milestone: a network of 500 stores. This rapid expansion has been a key focus for the company, led by veteran investor Radhakishan Damani.

Stock Performance and Investor Gains

On Wednesday, the shares of Avenue Supermarts were trading 7.69% higher at Rs 4,266 apiece by late afternoon, after touching a day's high of Rs 4,293. This represented the stock's largest single-day gain since February 1, 2025, when it had closed over 9.5% higher. The rally added substantial value for its promoters. Radhakishan Damani and other promoters, who hold a 74.65% stake in the company, saw the value of their holdings increase by over Rs 16,100 crore in a single day, rising from Rs 1,92,433 crore to Rs 2,08,549 crore at the day's peak.

An Accelerated Expansion Spree

The primary catalyst for the stock's upward movement was an accelerated pace of new store openings, particularly in the final days of March. According to exchange filings, DMart launched 12 new stores on March 31 alone. This followed the opening of seven stores on March 30 and three on March 29. The expansion spree began on March 28 with a new store in Bengaluru. In just four days, the company scaled its footprint from 478 to 500 stores. The new outlets are geographically diverse, with locations in Pune, Chennai, Cuttack, Lucknow, Greater Noida, Faridabad, and several other cities across India.

Annual Store Addition Trends

The recent launches capped a strong year of growth for the retailer. In the fourth quarter of fiscal year 2026, DMart opened 58 new stores. For the full fiscal year, the company added a total of 85 stores. This marks a significant acceleration compared to previous years; DMart opened 50 stores in FY25, 41 in FY24, and 40 in FY23. This demonstrates a clear strategy to intensify its physical presence across the country.

Recent Financial Highlights

DMart's expansion is supported by steady financial performance. For the third quarter of FY26, ending December 31, 2025, the company reported a 17.6% year-over-year increase in standalone net profit, reaching Rs 923 crore. Total revenue for the same period grew by 13.2% to Rs 17,613 crore. The company's EBITDA margin also improved to 8.4%, up from 7.9% in the corresponding quarter of the previous year. The second quarter of FY26 also showed healthy growth, with a 15% year-over-year increase in revenue from operations.

Analyst Views and Market Outlook

The aggressive expansion has caught the attention of market analysts, though opinions remain mixed. Brokerage firm CLSA maintained a 'High conviction outperform' rating on the stock, setting a price target of Rs 6,185. CLSA noted that DMart had already surpassed its earlier estimate of opening 60 new stores for the year, indicating that its expansion is proceeding faster than anticipated. However, a broader consensus of 29 analysts covering the stock shows a divided view: 10 recommend a 'Buy', 11 suggest 'Hold', and 8 advise 'Sell'.

Online Business and Other Factors

While the physical store network is growing rapidly, the company's online grocery business, DMart Ready, has experienced a slowdown. Its growth moderated to 20% in a recent quarter, down from 25% in the same period a year earlier. This was partly attributed to a consolidation of its operations, with its presence reduced from 25 to 19 cities. Despite this, the overall sentiment remains positive, driven by the success of its brick-and-mortar strategy.

Conclusion

Avenue Supermarts has started the new fiscal year on a strong footing, with its stock price reacting positively to its impressive expansion milestone. The company's ability to accelerate store openings has reassured investors of its growth trajectory. While challenges in its online segment persist and analyst opinions are varied, the market is currently rewarding the tangible growth in its physical retail footprint. Future performance will likely depend on sustaining this expansion momentum while also improving profitability and same-store sales growth.