Company Update : Avenue Supermarts Ltd by Motilal Oswal Financial Services Ltd
D-Mart 1QFY26 pre-quarter update
Revenue grew 16% YoY (vs. 17% YoY in 4Q and our est. ~18% YoY)
* DMart’s 1QFY26 standalone revenue at INR159b grew 16.2% YoY (slightly weaker vs. our pre-quarter estimate of ~18% YoY), driven by 14% YoY store addition and likely mid to high single-digit SSSG.
* Unlike value fashion retailers, we do not expect any significant impact on LTL growth for DMart due to the shift in Eid dates as apparel forms a small part of DMart’s overall revenue mix.
* DMart added 9 stores during the quarter (vs. 6 stores opened in 1QFY25), taking the total count to 424 stores.
* Productivity remains weak
* Annualized revenue per store grew ~2% YoY to INR1.52b (vs. +3% YoY growth in 4QFY25).
* Annualized revenue/sqft. (calculated) stood at INR36.7k, up ~2% YoY (~3% YoY growth in 4QFY25).
Acceleration in store additions remains the key monitorable for DMart. We are building in 60 net store additions in FY26 (vs. 50 in FY25).
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
