DMart Shares Surge 4% Following Strong Q4 Performance Despite Analyst Concerns

Q: What was the revenue growth for DMart in Q4 FY26?

DMart reported a **19% year-on-year** increase in standalone revenue for Q4 FY26.

Q: How many new stores did DMart open in Q4 FY26?

DMart opened **58 new stores** in Q4 FY26, bringing its total to **500 stores**.

Original: DMart shares jump 4% after strong Q4 update, but JM Financial calls risk-reward ratio unattractive; here's why

The Economic Times•Apr 6, 20264 min

In a Nutshell

Shares of Avenue Supermarts, the parent company of DMart, rose nearly 4% to ₹4,518 after reporting a 19% year-on-year increase in standalone revenue for Q4 FY26. Despite this positive update, JM Financial warns that the risk-reward ratio is unattractive due to potential volatility and increased costs.

Key Points

01DMart's standalone revenue reached ₹17,204.50 crore in Q4 FY26, a 19% YoY increase.
02The company opened its 500th store, with 58 new openings in Q4 alone.
03JM Financial raised DMart's target price to ₹4,500 but maintained a 'Reduce' rating.
04Same-store sales growth accelerated to approximately 10% in Q4, up from 6-7% in previous quarters.
05Despite the revenue growth, JM Financial expressed concerns over rising costs and cash flow.

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Full Summary

Avenue Supermarts, the operator of DMart, saw its shares increase by nearly 4% to ₹4,518 following a robust Q4 FY26 report, which showed a 19% year-on-year rise in standalone revenue from operations, totaling ₹17,204.50 crore. This growth marks a significant recovery from a 13% increase in the previous quarter. The company also achieved a milestone by opening its 500th store, with 58 new locations added in Q4 alone. JM Financial acknowledged the positive revenue update but cautioned that the risk-reward ratio is unattractive due to potential volatility in quarterly performance and increased costs associated with new store openings. They raised the target price for DMart to ₹4,500, reflecting a 3% upside from its previous closing price, while maintaining a 'Reduce' rating on the stock. Analysts are closely monitoring DMart's margin profile, debt levels, and operational cash flow as the company continues to expand.

Key Figures

₹17,204.50 crore

Total standalone revenue for Q4 FY26

19%

Year-on-year revenue growth for Q4 FY26

58

Number of new stores opened in Q4 FY26

₹4,500

New target price set by JM Financial for DMart

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Why It Matters

The increase in DMart's store count and revenue growth could lead to more job opportunities and better access to affordable grocery options for consumers in the regions where new stores are opened.

Who is affected

Consumers, job seekers, and local economies in areas where DMart expands.

What to know

Investors should monitor DMart's financial performance and store expansion strategy closely.

FAQ

DMart reported a 19% year-on-year increase in standalone revenue for Q4 FY26.

DMart opened 58 new stores in Q4 FY26, bringing its total to 500 stores.

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