News

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. 

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. 

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. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.