INSUBCONTINENT EXCLUSIVE:
reported a 2% year-on-year (YoY) rise in standalone net profit to Rs 830 crore for the first quarter of FY26, compared to Rs 812 crore in
the year-ago period.Revenue from operations rose 16% YoY to Rs 15,932 crore.During the quarter, the company opened nine new stores, taking
its total count to 424 as of June-end.The company said revenue growth remained strong, but margin and cost pressures persisted
The highly competitive FMCG segment also weighed on margins.Standalone EBITDA came in at Rs 1,313 crore, up from Rs 1,221 crore in the same
However, EBITDA margin dropped to 8.2% from 8.9% a year ago
On a consolidated basis, EBITDA stood at Rs 1,299 crore with a margin of 7.9%, down from 8.7% in Q1FY25.
Live EventsCEO and MD Neville
Noronha said older stores (two years and above) recorded 7.1% growth in the quarter
Operating costs rose due to increased investments in service levels, capacity building, and inflation in entry-level wages
Gross margin also declined year-on-year due to continued pricing pressure in the FMCG segment.Should you buy, sell, or hold DMart shares?
The brokerage expects margin pressures to persist due to competitive intensity and has cut its FY26E and FY27E PAT estimates by around 6%
With a roll-forward to Q1FY28 PAT, the target has been revised downward from Rs 4,273 to Rs 4,086.Motilal Oswal (MOSL)Motilal Oswal has
maintained a Buy rating with a target price of Rs 4,500
retail costs per square foot
Revenue rose 16% YoY, largely driven by 14% store expansion, though like-for-like growth slowed to 7.1% amid deflation
The company added nine stores during the quarter, up from six a year ago.MOSL also highlighted that elevated operating costs stem from
efforts to improve service levels, build capacity, and manage wage inflation
Rising competition from quick commerce players could pressure near-term growth and margins, but strong store-level economics are expected to
