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DMart Set to Post Q3 Results Today as Analysts See Margins Under Pressure

Brokers point to quick‑commerce competition as the key drag on profitability.

Overview

  • Avenue Supermarts has reported provisional Q3 standalone revenue of Rs 17,612.6 crore, an increase of about 13.2% year on year.
  • DMart closed the quarter with 442 stores after new openings across Andhra Pradesh, Karnataka, Gujarat, Rajasthan and Tamil Nadu.
  • Broker previews indicate EBITDA margins in roughly the 7.2%–7.7% range with single‑digit growth in profit after tax, reflecting softer operating leverage.
  • Analysts cite pressure from quick‑commerce rivals, deflation in staples and non‑food, lower MRPs after GST cuts, and dilution from rapid store expansion.
  • Opinions on valuation diverge, with CLSA cutting its target to Rs 6,105 but keeping a High‑Conviction Outperform as shares hover near Rs 3,800 and well below the 52‑week peak.