DMart shares fall 4% after Q4 results. What are Goldman Sachs, Morgan Stanley, others saying?

DMart Share Price: Shares of Avenue Supermarts, the operator of DMart, declined as much as 4% to their day’s low of Rs 4,402 on the BSE on Monday after it reported a net profit of Rs 656.6 crore for the March quarter of FY26, marking a jump of 19% from Rs 550.90 crore posted in the corresponding quarter of the previous financial year. The net profit is attributable to the equity holders of the company.

The company’s revenue from operations also gained 19% to Rs 17,684 crore versus Rs 14,872 crore reported in the same period last year, the company said in a regulatory filing.

Avenue Supermarts continued its expansion momentum in Q4FY26, adding 58 stores during the quarter and crossing the milestone of 500 DMart stores. The company noted that geopolitical tensions led to a temporary spike in consumer buying in March 2026, which normalised toward the end of the month. It also added that operations have not faced any significant supply chain disruptions so far.

What are experts saying?

Morgan Stanley has maintained an Overweight rating on Avenue Supermarts with a target price of Rs 5,188, upside of 12.5% from current levels. The brokerage sees a favourable setup for FY27, supported by faster store additions, improving inflation trends and a weak base. Management pointed to a temporary spike in demand during March driven by geopolitical tensions.

Goldman Sachs, on the other hand, has retained a Sell rating on Avenue Supermarts, raising its target price to Rs 4,000 from Rs 3,730, a downside of 13% from last close. The brokerage expects near-term support from FMCG price hikes and quicker store additions. It has raised FY27-28 EPS estimates by around 2% on account of lower interest costs, while the revised target price reflects unchanged operating assumptions but improved financing costs. Management indicated pantry stocking in March due to geopolitical tensions as a temporary factor supporting demand. EBITDA margin at 6.85% was largely in line with estimates.

Motilal Oswal has maintained its Buy rating on Avenue Supermarts with a target price of Rs 5,200, indicating an upside of 13%. The brokerage believes sustained acceleration in store additions will remain the key growth driver, and has factored in 85 and 90 new stores in FY27 and FY28 respectively. While competitive intensity from quick commerce may stay elevated in the near to medium term, it expects DMart’s value-driven model and strong store economics to support its competitiveness and customer relevance over the long run, particularly in tier 2 and smaller towns.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)