DMart Shares Gets 'Hold' Rating From Systematix On Better Than Expected Q3 Margins— Check Revised Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Report

Avenue Supermarts Ltd.'s revenue growth stood at 13.2% YoY, operating margin at 8.4% leading to a 17.6% YoY PAT growth while PAT margin expanded 20 bps YoY to 5.2%.

The Q3 FY26 same store revenue growth for two years and older stores was 5.6% (as per the company). Revenue per sq.ft declined 0.4% YoY to Rs 9,624 during Q3 FY26, while Ebitda per sq.ft grew 5.5% YoY to Rs 809.

Revenue per store declined 0.9% YoY to Rs 398 million while Ebitda per store grew 5% YoY to Rs 34 million in Q3 FY26.

Gross margin increased 50 bps YoY to 14.6% while Ebitda margin expanded 47bps YoY to 8.4%.

Other expenses declined 25 bps YoY while employee costs increased 28 bps YoY. Adjusted PAT grew 17.6% YoY to Rs 9.2 billion.

Systematix maintains Hold rating on DMart with a SOTP-based target price of Rs 4,134 (from Rs 4,055 earlier) based on 38x Dec 2027 EV/Ebitda (35% discount to LPA of 60x) for the offline business and 2x Dec 2027 EV/ sales for the online business.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.