DMart Share Price Falls 2% After Q2 Results Despite 15% Jump in Revenue; Analysts Turn Cautious; BUY/SELL?

Shares of Avenue Supermarts Ltd, the operator of the popular retail chain DMart, fell sharply on Monday, October 13, after the company announced its Q2 FY26 earnings on Saturday, 11 October.

DMart Share Price Today

The stock is trading 2.09% lower at Rs. 4,230 at the time of writing on the BSE. Over the past month, DMart shares have slipped nearly 9.05%, though they remain up about 18.79% so far in 2025.

DMart Q2 Results

Avenue Supermarts Ltd, OR DMart, reported a steady performance in its Q2 FY26 results, with consolidated revenue rising 15.4% year-on-year to Rs.16,676 crore from Rs.14,445 crore in the same quarter last year. EBITDA grew 11% to Rs.1,214 crore, though the EBITDA margin slipped slightly to 7.3% from 7.6%. Net profit inched up 3.9% to Rs.685 crore, with the PAT margin moderating to 4.1% versus 4.6% a year earlier. Earnings per share (EPS) stood at Rs.10.53 compared to Rs.10.14 in Q2 FY25.

For the first half of FY26, revenue rose 15.9% to Rs.33,036 crore, while EBITDA increased 8.6% to Rs.2,513 crore. However, margin pressures persisted, with EBITDA margin declining to 7.6% and PAT margin to 4.4%. Net profit for H1 FY26 stood at Rs.1,458 crore, up just 1.7% year-on-year.

For DMart, sales momentum was strong this quarter; profitability continues to be impacted by elevated costs and competitive pressures.

Brokerage Recommendations on Avenue Supermarts: DMart Share Price Target

Brokerages maintained a cautious stance on Avenue Supermarts Ltd (DMart) post its Q2 FY26 results.

Systematix Institutional Equities has given a "HOLD" rating on the stock, setting a target price of Rs. 4,055 against the current market price of Rs. 4,320, citing a downside potential of around 6%. The broking in its report said that while DMart continues to show healthy revenue growth, margin compression remains a concern due to competitive pricing and higher operating costs.

Similarly, Centrum Broking maintained a "NEUTRAL" stance with a target price of Rs. 4,000, against the market price of Rs. 4,305, indicating a negative return of 7%.

About DMart

Avenue Supermarts Ltd, popularly known as DMart, is one of India's largest retail chains, founded by veteran investor Radhakishan Damani in 2002. Headquartered in Mumbai, the company operates a nationwide network of over 400 stores across multiple states, offering a wide range of everyday essentials from groceries, personal care, and home care items to apparel, kitchenware, and general merchandise. DMart follows a unique "Everyday Low Cost, Everyday Low Price" model, which focuses on keeping prices consistently low by maintaining lean operations, efficient supply chains, and, in many cases, owning its store properties, which has helped DMart build strong customer loyalty among middle-income and price-conscious households.

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