RK Damani stock: Can DMart deliver robust growth this quarter?

Synopsis: DMart reported strong Q4 FY26 revenue of Rs. 17,204 crore (up ~19% YoY) and reached 500 stores, indicating solid growth momentum, though margins and same-store sales will determine profitability sustainability.

One of India’s leading value retail chains is in focus as it gains amid a mixed market trend after reporting its Q4 business update, highlighting strong revenue growth and aggressive store expansion, while investors closely watch whether the company can sustain robust growth supported by improving margins and consistent demand.

With a market capitalisation of Rs. 2.90 Lakh Crore, the shares of Avenue Supermarts are trading at Rs. 4,465, up by 2.40 percent from its previous closing of Rs. 4,360. The stock after today’s opening made a high of Rs. 4,512.60 , which is 3.48 percent up. Stock’s past 1 year return stands at 12 percent with 5 year return standing at an underperforming 52 percent. 

Business Update and Milestones for Q4

Avenue Supermarts Limited (DMart) reported a strong business update for Q4 FY26, with standalone revenue from operations rising to Rs. 17,204.5 crore, reflecting a healthy year-on-year growth of around 19% compared to Rs. 14,462.39 crore in Q4 FY25. The company has maintained a consistent growth trajectory over the past four years, driven by steady store expansion and resilient consumer demand.

During the quarter, DMart also achieved a key milestone by reaching a total of 500 stores as of March 31, 2026, further strengthening its presence in the value retail segment, although one store in Sanpada, Navi Mumbai, remains temporarily closed for reconstruction. Overall, the performance highlights strong business momentum and continued execution of its expansion strategy.

Avenue Supermarts Limited (DMart) announced the opening of 12 new stores across multiple cities, including Pune, Chennai, Lucknow, Greater Noida, Faridabad, Ahmedabad, and Nagpur. With these additions, the company’s total store count reached 500 stores. Notably, 12 out of these 500 stores were opened on March 31, 2026, itself, highlighting a strong push in expansion at the end of the financial year.

Performance Expectation

While the topline performance and store additions point toward continued business momentum, the extent of robust growth in this quarter will also depend on factors such as same-store sales growth, operating margins, and cost efficiencies, which are yet to be disclosed. Overall, the update suggests a positive outlook, but a clearer picture of profitability and underlying demand trends will be crucial to assess the sustainability of this growth.

Consolidated Financial Highlights

On a QoQ basis (Sep 2025 to Dec 2025), the company reported steady growth across key metrics, with sales rising from Rs. 16,676 crore to Rs. 18,101 crore (up 8.5 percent), while operating profit increased from Rs. 1,214 crore to Rs. 1,463 crore (up 20.5 percent). This led to an improvement in operating margins from 7 percent to 8 percent, reflecting better efficiency, and net profit grew from Rs. 685 crore to Rs. 856 crore (up 25.0 percent), indicating strong operating leverage.

On a YoY basis (Dec 2024 to Dec 2025), sales grew from Rs. 15,973 crore to Rs. 18,101 crore (up 13.3 percent), while operating profit rose from Rs. 1,217 crore to Rs. 1,463 crore (up 20.2 percent). Margins remained stable with OPM at 8 percent, and net profit increased from Rs. 724 crore to Rs. 856 crore (up 18.2 percent), highlighting healthy profitability growth.

DMart, operated by Avenue Supermarts Limited and founded by Radhakishan Damani in 2002, is one of India’s leading supermarket chains with 500 stores known for its low-cost retailing strategy. The company follows an “Everyday Low Price” (EDLP) model, offering groceries, FMCG products, apparel, and household essentials at competitive prices. With a strong focus on operational efficiency, cost control, and value-for-money offerings.

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