Synopsis:
Shares of Avenue Supermarts fell over 3 percent after Goldman Sachs lowered its target price and retained a “sell” rating, citing softer-than-expected sales and slower store growth ahead of Q2 FY26 results.
Shares of one of the largest food & grocery retailers in India moved down by nearly 3.3 percent on BSE, following Goldman Sachs’ “sell” rating and a target price cut from Rs. 3,450 to Rs. 3,370 per share, implying a potential downside of about 21 percent from current levels.
At 11:31 a.m., the shares of Avenue Supermarts Limited were trading in the red at Rs. 4,278.05 on BSE, down by around 3 percent, as against its previous closing price of Rs. 4,417.55, with a market cap of Rs. 2.79 lakh crores. The stock has delivered negative returns of over 5 percent in the last one year, and has fallen by around 9 percent in a month.
Brokerage Target & Outlook
Global brokerage firm Goldman Sachs maintained its “sell” rating on Avenue Supermarts Limited, while revising its target price downwards from Rs. 3,450 to Rs. 3,370 per share, representing a downside of nearly 21 percent from the current price levels.
The brokerage attributed the downgrade to weaker-than-expected quarterly sales growth, despite a relatively low base for DMart. Additionally, it noted a lack of significant acceleration in store expansion, prompting a reduction in FY26 sales growth projections from 20 percent to 18 percent. Earnings per share (EPS) forecasts for FY26-28 were also lowered by 2 percent.
Meanwhile, JPMorgan retained a “neutral” rating on Avenue Supermarts, assigning a target price of Rs. 4,350 per share. The brokerage highlighted that slower revenue growth in the quarter could weigh on the stock in the near term.
According to the latest filings, Avenue Supermarts, the parent company of the DMart hypermarket chain, posted a standalone revenue growth of 15.4 percent YoY in Q2, reaching Rs. 16,218 crore.
This growth was slightly below its three-year compound annual growth rate (CAGR) of 15.8 percent. During the quarter, the company added eight new stores, bringing the total store count to 432, with 17 new openings in the first half of the current fiscal year.
Going forward, key factors to monitor include the impact of GST rate cuts on financial performance, the progress of DMart Ready, and the company’s strategy for further store expansions.
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Financials & More:
Avenue Supermarts reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 16 percent, from Rs. 14,069 crores in Q1 FY25 to Rs. 16,360 crores in Q1 FY26.
In contrast, the company’s net profit decreased during the same period from Rs. 774 crores to Rs. 773 crores, representing a marginal decline of nearly 0.12 percent YoY.
Avenue Supermarts Limited is a national supermarket chain with a focus on value retailing. It offers a wide range of products with a focus on the Foods, Non-Foods (FMCG) and general merchandise & apparel product categories. The company is scheduled to announce its Q2 FY26 results on 11th October 2025.
Written by Shivani Singh
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