Dmart Shares Plummet Despite Q3 Profit Surge: What's Next for Investors?

• Dmart's parent company, Avenue Supermarts, saw its shares fall despite a 17% net profit increase to ₹856 crore and a 13.3% revenue rise to ₹18,101 crore in Q3 FY26.
• Operating profit grew by 20.2% to ₹1,463 crore, and operating margin improved from 7.7% to 8.1%.
• A major concern for brokerages is the slowdown in same-store (LFL) growth to 5.6%.
• Jefferies and Nuvama maintained 'Hold' ratings with target prices of ₹4050 and ₹4351 respectively, citing good margins but slow revenue growth.
• Citi issued a 'Sell' rating with a target price of ₹3150 due to slow growth, margin risks, and increased competition from quick commerce.

Why It Matters: Despite strong Q3 earnings, Dmart shares fell due to slow same-store growth and brokerage concerns over future margins.