DMart’s Q2 FY26 results showed a 15% revenue rise but modest profit growth, leading to a 2% stock dip. Analysts remain cautious due to margin pressure and slower same-store growth. While long-term fundamentals are intact, investors are advised to watch cost trends and competitive dynamics before making buy/sell decisions.
Avenue Supermarts Ltd, the operator of DMart retail stores, saw its stock decline by 2% following the release of its Q2 FY26 results on October 11, 2025. Despite a 15% year-on-year revenue growth, the company’s earnings fell short of market expectations, prompting mixed reactions from analysts regarding its 2025 share price trajectory.
Earnings Snapshot
- DMart reported a consolidated revenue of ₹16,676 crore, up 15.4% from ₹14,445 crore in Q2 FY25.
- Net profit rose modestly to ₹747 crore, a 5.1% increase from ₹710 crore in the same quarter last year.
- Margins remained under pressure due to higher operating costs and slower same-store growth.
- The stock dropped 2.09% to ₹4,230 on the BSE, with a 9% decline over the past month despite an 18.79% gain year-to-date.
Brokerage Sentiment
Market experts are divided on the stock’s near-term prospects. While some brokerages maintain a “Hold” rating citing stable fundamentals, others urge caution due to margin compression and intensifying competition in the retail segment. The company’s asset-light model and strong brand recall continue to support long-term optimism, but analysts are watching cost dynamics closely.
Strategic Outlook
DMart’s focus on expanding its store network and maintaining low prices remains central to its growth strategy. However, rising input costs and urban saturation pose challenges. Analysts suggest that the company may need to explore digital retail innovations and supply chain efficiencies to sustain profitability.
Investor Takeaway
For investors, the current dip presents a moment of reflection. Those with long-term conviction in DMart’s business model may consider holding, while short-term traders are advised to monitor upcoming quarters for margin recovery and operational clarity.
Sources: ET Now, Zee Business, Goodreturns