DMart Shares Decline Over 3% as Q4 Profit Falls Short of Projections

DMart Stock Falls 3.3% After Reporting Mixed Q4 FY26 Results

Avenue Supermarts Ltd (DMart) shares declined by 3.3 percent in Monday's trade, with the stock trading at Rs 4,434.3 in morning trade on May 4. The decline comes after the company reported mixed results for Q4 FY26, as net profit missed estimates while revenue growth remained robust and margins improved.

Despite the decline, the stock remains up 10.4 percent over the past one year, outperforming the Nifty 50, which is down around 1 percent in the same period. The company reported a net profit of Rs 656.6 crore for Q4FY26, up 19.2 percent year-on-year from Rs 550.9 crore, but below the CNBC-TV18 poll estimate of Rs 680 crore.

Revenue Growth Remains Robust

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Revenue for the quarter rose 18.9 percent to Rs 17,683.9 crore from Rs 14,871.9 crore a year earlier. Operating performance was relatively stronger, with EBITDA growing 26.7 percent year-on-year to Rs 1,210.5 crore, slightly ahead of estimates of Rs 1,200 crore. Operating margins expanded to 6.85 percent from 6.42 percent in the year-ago period, indicating some improvement in cost efficiencies.

Brokerage Views

Brokerages largely acknowledged the strength in operating metrics and growth trajectory, even as the earnings print remained mixed. CLSA maintained its high conviction outperform rating with a target price of Rs 6,628. Morgan Stanley retained its overweight rating with a target price of Rs 5,188 per share. However, Jefferies maintained a more cautious stance with a hold rating, while raising its target price to Rs 4,500 per share.

Key Developments

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On the operational front, DMart continued to expand its footprint, reaching 500 stores during FY26. The company also announced key management changes, with Hitesh Shah appointed as Chief Business Officer for Pharmacy and Food Services. Director Chandrashekhar Bhave will step down from the board effective May 16, while Ravi Sharma has been appointed as Internal Auditor for FY27.