Overview

• DMart’s Q1FY26 revenue grew 16.2% to ₹15,932 crore while standalone net profit increased by just 2% to ₹830 crore.
• EBITDA margin narrowed to 8.2% from 8.9% year-on-year and PAT margin fell to 5.2% from 5.9%, reflecting deflationary pricing and rising operating costs.
• The retailer opened nine new stores during the quarter, bringing its total to 424 outlets and achieving 7.1% same-store sales growth in two-year-old stores.
• Nuvama lowered its target price to ₹4,086 and trimmed FY26-27 profit estimates by 6–8%, while MOFSL cut its target to ₹4,500 and revised down earnings forecasts.
• Analysts attribute the margin pressures to a shift toward lower-margin food sales, investments in service capacity enhancements, and rising entry-level wages.