DMart share price trades flat after Q3 results. Should you buy, sell or hold?

DMart share price was flat during Monday's trading session following the Q3 FY26 results announcement from its parent company, Avenue Supermarts, over the weekend. Although the earnings were considered decent, the market sentiment for the stock was lukewarm; Citi advised investors to ‘sell’ due to decelerating same-store growth and unstable margin factors as per reports, while Jefferies and Nuvama suggested to ‘hold’ DMart shares, indicating limited potential for gains despite an earnings surpass driven by significant margin growth.

DMart announced its third-quarter results for the financial year 2026 on Saturday, reporting an 18.3% year-on-year (YoY) increase in its consolidated profit after tax (PAT), reaching ₹855.92 crore, compared to ₹723.72 crore in the corresponding period last year.

At the same time, revenue from operations experienced a 13.3% YoY increase. For that quarter, revenue from operations amounted to ₹18,100.88 crore, up from ₹15,972.55 crore in the third quarter of the prior fiscal year.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose to ₹1,463 crore in Q3FY26, an increase from ₹1,217 crore in the same quarter last year. The EBITDA margin improved to 8.1%, compared to 7.6% in Q3FY25.

Here's what brokerages say

Nuvama Institutional Equities noted that due to the present slower growth trajectory and heightened focus on margins, the brokerage is making adjustments to FY26E/27E revenue and PAT by -0.6%/-3.7% and +5.4%/-3.5%, respectively, resulting in a new target price of ₹4,351 (previously ₹4,580). “We continue to recommend a ‘HOLD’ on the stock,” said Nuvama.

According to reports, Citi has assigned a ‘Sell’ rating to DMart, setting a target price of ₹3,150 per share. It reported that same-store growth declined to 5.6%, resulting in a 13% year-on-year revenue increase that fell short of its estimates, with deflation in staples contributing to the slowdown in revenue growth.

While noting that EBITDA and profit increased by 20% and 18% year-on-year and slightly surpassed expectations, Citi warned that the sustainability of margins poses a risk. It suggested that the expansion in gross margins might be an isolated event, linked to FMCG discounts or a reduction in discounting following GST adjustments.

As per reports, Citi also highlighted a trend where profit growth has trailed revenue growth in 10 out of the last 12 quarters, linking this to pressures from quick commerce competition and rising costs.

Additionally, according to reports, Jefferies has kept a ‘Hold’ rating with a target price of ₹4,050, recognizing the earnings surprise driven by margins but emphasizing the slowing revenue growth and weak like-for-like trends. It also pointed to potential execution challenges related to store expansions and the impending transition in CEO.

DMart share price today

DMart share price today opened at ₹3,841.60 apiece on the BSE, the stock touched an intraday high of ₹3,917.95, and an intraday low of ₹3,764.35.

Anshul Jain, Head of Research at Lakshmishree, said that DMart share price has spent nearly 50 months oscillating within a broad 5,180 to 3,205 range, building a long-term balance zone. According to Jain, the stock is currently positioned near the middle of this range and is resting on its rising 50-month moving average, which is acting as a key structural support.

“As long as the index holds above the long-term average, the logical and measured objective remains the upper end of the range near 5,180. Any sustained failure below the moving average would invalidate this mean-reversion thesis,” said Anshul Jain.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.