US-based Capital Group divested a 1.04% stake in Avenue Supermarts Ltd, the parent company of retail chain D-Mart, for ₹2,537 crore through an open market transaction. According to The Economic Times, the financial services company sold 67,64,623 equity shares at an average price of ₹3,750.58 per share. The shares were offloaded through its affiliate American Funds Insurance Series Global Growth and Income Fund, with details of the buyers not immediately disclosed. Following the divestment announcement, Avenue Supermarts shares fell 2.28% to close at ₹3,822 apiece on the BSE.
The stock's decline comes after Avenue Supermarts reported robust first-quarter results last month, with both profit and revenue recording double-digit year-on-year growth. As reported by The Economic Times, the company's consolidated net profit for Q1 FY27 rose 11.33% YoY to ₹860.44 crore, compared with ₹772.81 crore in the year-ago quarter. Revenue from operations increased 14.9% YoY to ₹18,794.53 crore, from ₹16,359.70 crore in Q1 FY26. EBITDA stood at ₹1,499 crore, compared with ₹1,299 crore a year earlier. The company had posted a net profit of ₹772.81 crore in the April-June period of the previous fiscal year.
As reported by The Economic Times, Avenue Supermarts shares were trading at ₹3,822 following the divestment announcement, down 2.28% from the previous close. The stock has demonstrated mixed performance, gaining approximately 1.8% in 2026, which contrasts with the 6.9% decline in the Nifty 50 over the same period. At the current market price, the company maintains a market capitalisation of around ₹2.47 lakh crore. According to latest shareholding information, promoter entities held a 74% stake in Avenue Supermarts as of the end of the April-June quarter, while public shareholders held the remaining 26%.
During its analyst meet, DMart management indicated plans to increase its store count by around 15% of the existing base, translating to roughly 75 new stores. As reported by CNBC TV18, this was slightly below street expectations of around 80-100 additions. Management also described quick commerce as a structural threat to the business. Analysts attending the meeting told CNBC-TV18 that the company did not expect a significant revival in same-store sales growth in the coming years, adding to investor concerns around the company's growth trajectory. Following the latest results, brokerages remained cautious on the stock, citing slowing same-store sales growth and intensifying competition from quick-commerce platforms in key metro markets as major concerns, even as operating profitability remained resilient.
