DMart shares slide 3% after brokerages trim target prices post Q4 show

The company, in its Q4FY25, posted a 2.6% year-on-year increase in standalone net profit for Q4 FY25, reaching Rs 619.71 crore. The company posted a standalone net profit of Rs 604.2 crore in the same quarter last year.

Meanwhile, revenue from operations rose 16.7% YoY to Rs 14,462.39 crore, up from Rs 12,393.46 crore in Q4 FY24.

However, on a sequential basis, net profit declined 21% from Rs 784.65 crore in Q3 FY25, while revenue also dipped 7% from Rs 15,565.23 crore. Total expenses rose to Rs 13,713 crore YoY but fell 5.7% QoQ from Rs 14,549.07 crore.

For the full FY25, profit after tax grew 8.6% to Rs 2,927.18 crore from Rs 2,694.92 crore in FY24. EBITDA rose to Rs 4,543 crore, compared to Rs 4,099 crore in the previous year, though the EBITDA margin narrowed to 7.9% from 8.3%.

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Here’s what brokerages said post Q4 show:Nuvama: Hold | Target price: Rs 4,273
Nuvama maintained its ‘Hold’ call on the stock with a target price of Rs 4,273.
DMart was able to maintain its 15%-plus growth trajectory for both Q4FY25 and FY25. Store addition picked up, and DMart was able to meet its annual guidance. Management has indicated pressure on gross margins driven by higher competitive intensity in the FMCG space.

On opex, DMart is seeing a surge in wages due to demand-supply mismatch along with elevated investments for building and improving service levels.

“We are tweaking FY26E/27E revenue slightly by 0.2%/-0.2% and building in softness in margins, we are trimming FY26E/27E PAT by -0.3%/-3%,” Nuvama said.

Motilal Oswal: Buy | Target price: Rs 4,350
Motilal Oswal Financial Services (MOSL) has reiterated its Buy rating on Avenue Supermarts with a revised target price of Rs 4,350, down from Rs 4,650 earlier.

The company reported weak results for Q4FY25. With recent fundraises by the top three quick commerce players and the growing presence of large offline and online retailers in the space, competitive intensity is expected to remain high in the near term. Despite this, MOSL believes DMart’s value-driven model and strong store-level economics will help maintain its competitiveness and consumer relevance, even amid the growing appeal of quick commerce’s convenience.

However, increasing pricing pressure could impact DMart’s growth and margins in the near future. As a result, MOSL has lowered its FY26-27E EBITDA estimates by 5% and cut EPS forecasts by approximately 6–8%, reflecting concerns around heightened competition and rising cost of revenue.

DMart share price

Shares of the company have fallen 12% in the last one year. Meanwhile, the stock has offered 5% and 78% returns in the last three and five-year periods, respectively. According to Trendlyne, Avenue Supermarts has worse 1 year returns than Sensex, Sector, Nifty50, and Industry.