DMart Q1 FY26 Results: Avenue Supermarts (DMart) was in focus in Monday’s trade as the stock faced selling pressure after the Mumbai-headquartered supermarket chain operator reported its financial results for the April-June period. The results saw brokerages giving mixed views about the company after its net profit, almost unchanged on a year-on-year basis, fell short of analysts’ expectations while its margin contracted by 80 basis points.
On Monday, the DMart stock declined by as much as Rs 105.6, or 2.6 per cent, to Rs 3,958.4 apiece on BSE in a weak Mumbai market.
DMart Q1 FY26 Earnings Summary
After Friday’s market hours, DMart reported a consolidated net profit of Rs 773 crore for the quarter ended June 30 with revenue growth to the tune of 16.3 per cent to Rs 16,360 crore.
According to Zee Business analysts, DMart was estimated to register a net profit of Rs 843 crore with revenue of Rs 16,450 crore for the first quarter of the financial year.
Its margin–a key measure of a business’s profitability–shrank to 7.9 per cent for the three-month period from 8.7 per cent a year ago.
The analysts had pegged the company’s quarterly margin at 8.2 per cent.
The company witnessed a rise in operating costs owing to its efforts on improving service levels, capacity building, and inflation at entry-level wages.
How brokerages view DMart after the company’s Q1 FY26 results
Brokerage
Rating
Target
Jefferies
Hold
Raised to Rs 4,200 from Rs 4,100
CLSA
Accumulate
Decreased to Rs 5,466 from Rs 5,549
Macquarie
Underperform
Raised to Rs 3,100 from Rs 3,000
Citi
Sell
Raised to Rs 3,300 from Rs 3,250
Morgan Stanley
Underweight
Rs 3,350
JPMorgan
Neutral
Rs 4,150
Bernstein
Outperform
Rs 5,000
Maintaining an ‘underweight’ rating on DMart, Morgan Stanley said the company’s Q1 performance fell short of its estimates as rising competition and capability investments continued to weigh on its business.
The brokerage kept its target price for the stock at Rs 3,350 apiece, indicating a 17.6 per cent downside from Friday’s closing price.
JPMorgan maintained its ‘neutral’ rating and Rs 4,150 target for the DMart stock. The target implies a potential upside of 2.1 per cent in the stock.
According to the brokerage, DMart’s margin continues to weaken amid higher investments and its 7 per cent LFL growth alongside faster store expansion and e-commerce build-out are positive. However, its margin may continue to soften in the near term, it added.
JPMorgan now awaits Avenue Supermarts’ annual management interaction as the next potential catalyst.
