D-Mart Shares Jump 5% in Sharpest Rally in 5 Months

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AuthorIshaan Verma|Published at:
D-Mart Shares Jump 5% in Sharpest Rally in 5 Months
Overview

Avenue Supermarts shares surged 5% today, marking its sharpest intra-day gain in five months and outperforming a weaker market. The rally precedes the company's Q3 FY26 earnings announcement scheduled for January 10, 2026. Analysts highlight robust revenue growth and strategic store expansion plans, despite ongoing challenges like competition and longer store gestation periods.

Avenue Supermarts (ASL), operating the popular D-Mart chain, saw its stock price surge 5% to ₹3,844 on the BSE during Wednesday's trading session. This marked the sharpest intra-day rally for the stock in the past five months, a significant move in an otherwise subdued market. ASL's performance contrasted sharply with the BSE Sensex, which declined by 0.38% at the time of the surge.

Revenue Growth Momentum

The company reported a robust 13.15% jump in standalone revenue from operations for the quarter ended December 31, 2025 (Q3FY26). Revenue reached ₹17,612.62 crore, up from ₹15,565.23 crore in the same period last year. As of Q3FY26, Avenue Supermarts operated 442 stores across India, reflecting its expanding physical footprint.

Analyst Confidence and Expansion Plans

Credit rating agency ICRA anticipates continued accelerated store openings in the near to medium term, with plans to add 10-20% of its existing store base annually. This strategy is expected to drive healthy revenue growth, capitalizing on the low penetration of organised retail in India's food and grocery segment. Axis Securities maintained its 'BUY' rating on the stock, setting a target price of ₹4,960.

Challenges and Strategic Initiatives

Despite positive outlooks, analysts acknowledge challenges faced by D-Mart, including subdued demand in the value segment and longer gestation periods for new, larger stores. Competition from organised players and online platforms also remains a factor. In response, ASL has implemented leadership changes, focused on improving profitability for its online grocery service D-Mart Ready, and aims for consistent store additions.

Upcoming Financials

The board of directors for Avenue Supermarts is scheduled to convene on Saturday, January 10, 2026. The primary agenda will be to consider and approve the un-audited financial results for the quarter and the nine-month period ending December 31, 2025. This announcement will be keenly watched by investors for further insights into the company's performance.

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