Shares of Avenue Supermarts, which operates the retail chain DMart, garnered traction in Wednesday’s trading session, January 7, as they gained 5% to the day’s high of ₹3,844.70 apiece, marking their biggest single-day gain since mid-August 2025.
On BSE, 82,000 shares of DMart changed hands as of 2.40 pm, as against the two-week average of 39,000 shares. Meanwhile, 11.54 lakh shares were traded on NSE.
Today’s rally has also provided some relief to the company’s shareholders, as the stock has been under prolonged selling pressure since reaching a one-year high of ₹4,949 in September.
The sell-off had deepened following the release of the December quarter business update last week, which pushed the stock to its lowest level since March 2025, as both topline growth and store expansion fell short of analysts’ estimates.
DMart December quarter update
For the December-ending quarter (Q3FY26), Radhakishan Damani-owned DMart reported standalone revenue from operations of ₹17,612.62 crore, reflecting a 13.15% increase from ₹15,565.23 crore in the same quarter of the previous fiscal year, as per the company’s regulatory filing last Friday.
Though the company posted double-digit topline growth, the momentum moderated compared to the 16% and 15% YoY growth recorded in the first two quarters of FY26.
Domestic brokerage firms JM Financial and Motilal Oswal had estimated a 17% revenue growth, according to the latest reports shared by the brokerages.
During the quarter, the company said it added 10 stores, taking total additions to 27 so far in FY26 and overall store count to 442 across India.
Given the sharp rise in discounts from quick-commerce companies, which are expected to be sustained in the near term, Motilal Oswal expects the acceleration in store count additions to remain the key growth driver for DMart, projecting 60 net store additions in FY26, up from 50 in FY25.
The brokerage expects the company’s gross margin pressure to continue over the medium term. JM Financial also expects a flat gross margin but estimates a 40-basis-point YoY dip to 7.5% in Q3FY26, largely due to negative operating leverage.
Overall, it expects EBITDA to grow 8% YoY to ₹13.3 billion and anticipates a 3% YoY growth in net profit to ₹8.1 billion.
DMart share price trend
From the September highs of ₹4,949, the shares have lost 23% of their value. This followed a prolonged bull run between February and August 2025, during which the stock had rallied 40%.
In terms of yearly performance, the stock finished 2025 with a modest growth of 6.20%, recovering from a 12.8% drop in 2024. From its record high of ₹5,900, the stock is currently down 35.2%.
Anshul Jain, Head of Research at Lakshmishree, said, “DMart has spent the last 22 weeks locked in a broad 3205 to 3518 range, with price trending lower for nearly 18 consecutive weeks and correcting over 27% from recent highs. This prolonged decline signals selling exhaustion rather than fresh distribution. The structure now shows early signs of stabilisation, with the last four sessions printing clear institutional long-side volumes, hinting at accumulation at lower levels”
“Momentum remains weak on higher timeframes, but mean reversion conditions are firmly in place. A sharp technical pullback toward the 4100 to 4200 zone appears increasingly likely as short covering and value buying kick in. This move should be viewed as a counter-trend bounce, not a trend reversal. Risk stays defined near recent lows, while upside potential remains attractive in the near term,” he further added.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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