Target Price: ₹5,270
Current Market Price (CMP): ₹4,056.05
DMart has demonstrated a consistent revenue growth rate of 17-20% CAGR over the past several quarters, primarily due to a network and retail space expansion of 14-15%. The recent investment in D-Mart Ready aims to bolster operations, working capital, and expansion, which is anticipated to enhance the company’s competitive standing in the online grocery sector and produce long-term advantages.
In Q4 FY26, DMart experienced a 9% year-on-year revenue growth, attributed to increased customer footfall. Additionally, mature stores—those operational for two years or more—recorded a notable growth of 10.8% during the same quarter.
Looking towards FY27, DMart is strategically focused on improving store productivity, enhancing profitability, and revitalizing the General Merchandise and Apparel (GM&A) segment, setting the stage for a gradual recovery in earnings. Management indicated that in light of recent GST reforms, the company has passed benefits from tax reductions to consumers where feasible. With consumer demand on the upswing, macroeconomic conditions stabilizing, and the implications of GST 2.0, these efforts are strategically positioned to facilitate growth in high-margin GM&A categories. Analysts maintain a positive outlook on the stock’s long-term potential, recommending a ‘Buy on Dips’ strategy.
However, key risks remain, including a protracted recovery in consumer demand and increased competitive pressure within the value retail sector.
Published on June 8, 2026
