DMart stock poor show may continue, but there're triggers to reverse it too

DMart's 15.4% revenue growth in Q2FY26 masks margin pressure and rising costs, but analysts see long-term upside from its North India push and network expansion

DMart's pre-quarter update for the second quarter of 2025-26 (Q2FY26) disappointed the market but several analysts continued to issue “Buy” recommendations. Revenue grew by 15.4 per cent year-on-year (Y-o-Y), led by 55 net store additions Y-o-Y, taking the total to 432 stores. Profitability is likely to be subdued due to elevated operating costs, and competitive intensity. DMart opened net eight new stores during the quarter (net 17 stores added in the first half of the financial year, or H1FY26), with one store temporarily closed for reconstruction.

 

The foray into UP and North India provides headroom for aggressive expansion