DMart Shares Plunge on Q3 Worries; Brokerages Mixed, Citi Recommends 'Sell'

• DMart shares fell over 2% to ₹3645.70 after investors reacted negatively to the Q3 business update, raising concerns about future growth.
• Avenue Supermarts reported a 13% YoY revenue increase to ₹17,612.6 crore for Q3 FY2026, but growth was sluggish with a 3-year CAGR slipping to 15.7%.
• Brokerage firm Citi maintained a 'Sell' rating with a ₹3250 target, citing strong competition from quick commerce, weak demand, and declining operating margins.
• Morgan Stanley gave an 'Equal-weight' rating with a target of ₹4552, reflecting a mixed outlook among analysts.
• DMart's operating profit margin has declined in 11 out of the last 12 quarters, highlighting persistent pressure.

Why It Matters: DMart faces investor concern and mixed brokerage outlook due to sluggish Q3 growth and margin pressures.