Dmart Q1 FY26 results are out. And they’re a bit of a mixed bag.
The retail giant saw its revenue from operations jump 16% year-on-year to ₹15,932 crore. But profit after tax (PAT) came in almost flat—down 0.11% to ₹773 crore.
It’s not the number you expect when revenue is rising. But here’s what’s behind the story.
Good Topline Growth, But Margins Under Pressure
EBITDA for Q1 FY26 stood at ₹1,299 crore. That’s an improvement from ₹1,221 crore in Q1 FY25. But the margin dropped. EBITDA margin fell to 7.9%, down from 8.7% a year ago.
That means costs are rising faster than profits.
Why Did Profit Stay Flat?
CEO Neville Noronha explained it clearly. Two things hit them hard:
- Deflation in staples and some non-food items.
- Fierce price competition in the FMCG space.
Add to that rising operating costs—from better services, more hiring, and inflation at lower job levels—and it becomes clear why the profit didn’t grow much.
Also Read Anand Rathi Wealth Soars 5.6% as Q1 FY26 Profit Jumps 28% YoY to ₹94 Crore
PBT, Store Count, and Strategy
Profit before tax (PBT) rose slightly by 0.32% to ₹1,057 crore.
The company added 9 new stores during the quarter. The total store count now stands at 424 as of June 30, 2025.
Dmart continues to follow its EDLC-EDLP strategy—keeping everyday costs and prices low by being super-efficient in buying and supply chain.
Standalone Numbers Tell a Slightly Better Story
On a standalone basis, the company posted a 2.1% increase in PAT to ₹829.7 crore. Revenue rose 16.2%.
Older stores (two years or more) grew by 7.1%, showing strong customer loyalty and repeat footfall.
Stock Reacts
Investors weren’t thrilled. Dmart’s stock fell 2.49% on Friday, July 11, closing at ₹4063.90.
Maybe they were expecting more on the bottom line. Or maybe the margin hit made them cautious.
Dmart Q1 FY26 shows a business still growing fast, but also dealing with tough market realities. High inflation, wage costs, and pricing wars in FMCG are eating into profits.
But the brand’s focus on efficiency, scale, and value remains rock solid.
Also Read GTPL Q1 FY26: Revenue Climbs 7.15% YoY, but EBITDA Slips 6.8% as Margins Tighten
