Synopsis:
National supermarket chain company’s shares fell over 2 percent in today’s trading session after announcing Q2 results.
A Large-cap company that is a national supermarket chain providing a wide range of products, is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.
With a market capitalization of Rs. 2,73,242.82 crore, the shares of Avenue Supermarts Limited were closed at Rs. 4,199 on Monday, down by 2.81 percent from its previous closing price of Rs. 4,320.40. The stock has reached a low of Rs. 4,192.10 in today’s trading session.
Q2FY26 Results
Avenue Supermarts Ltd reported Rs. 16,676 crore in revenue for the second quarter of FY26, 15.45 percent increase over the Rs. 14,444 crore for the same period in FY25. It increased by 1.93 percent as compared to Rs. 16,360 crore in Q1 FY26.
The company’s EBITDA for Q2 FY26 stood at Rs. 1,214 crore, down by 6.54 percent from Rs. 1,299 crore in Q1 FY25, but rose by 10.97 percent from Rs. 1,094 crore in Q2 FY25.
The consolidated net profit for the second quarter of FY26 was Rs. 685 crore, which was 11.38 percent lower than the Rs. 773 crore reported in the previous quarter but increased by 3.94 percent from Rs. 659 crore in Q2 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 10.53 in Q2 FY26 from Rs. 10.14 in Q2 FY25.
Management View
According to Mr. Anshul Asawa, CEO-Designate of Avenue Supermarts, Q2 FY26 revenue grew 15.4 percent YoY and PAT rose 5.1 percent YoY, with two-year-old and older DMart stores expanding 6.8 percent.
The company opened 8 new stores during the quarter, taking the total to 432 as of September 30, 2025, and passed on GST benefits to customers following recent government reforms.
According to Mr. Vikram Dasu, CEO of Avenue E-Commerce, the DMart Ready business added 10 new fulfillment centers and expanded in major metro cities, while ceasing operations in five cities, bringing its presence to 19 cities across India.
Also Read: Smallcap IT stock jumps 11% after Railway Minister Ashwini Vaishnaw endorses MapMyIndia
About the company
Avenue Supermarts Limited, headquartered in Mumbai, operates D-Mart, a national supermarket chain providing a wide range of products including groceries, FMCG, apparel, home and personal care, and general merchandise.
The company, which opened its first store in Mumbai in 2002, focuses on categories such as foods, non-foods, daily essentials, bed and bath, crockery, toys, and footwear.
As of September 30, 2025, Avenue Supermarts had 432 operating stores (including one temporarily closed for reconstruction) with a total retail area of 17.9 million sq. ft., spanning 13 states and union territories including Maharashtra, Gujarat, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab, NCR, Chhattisgarh, Uttar Pradesh, and Daman.
Analyst Outlook
Nuvama
Nuvama has maintained its ‘Hold’ rating on the stock with the target price raised from Rs. 4,544 to Rs. 4,580, with an upside of 9.07 percent from CMP of Rs. 4,199. Nuvama maintains a ‘Hold’ on Avenue Supermarts, noting easing but persistent margin pressure, sustained top-line growth, and a high Capital Work in Progress of Rs. 1,500 crore, indicating strong potential for new store additions in the next six months.
Motilal Oswal
Motilal Oswal has maintained its ‘Buy’ rating on the stock with the target price raised from Rs. 4,800 to Rs. 5,000, with an upside of 19.07 percent from CMP of Rs. 4,199. Motilal Oswal reiterates a ‘Buy’ on Avenue Supermarts, expecting 60 new store additions in FY26. While rising interest and depreciation costs pressure net profit, competitive intensity may have peaked. The brokerage projects a CAGR of 18 percent for consolidated revenue and EBITDA, and 16 percent for PAT.
UBS
UBS has maintained its ‘Buy’ rating on the stock but reduced the target price from Rs. 5,600 to Rs. 5,500, with an upside of 30.98 percent from CMP of Rs. 4,199. UBS maintains a ‘Buy’ on Avenue Supermarts, noting that while EBITDA growth lags revenue, the gap is narrowing. The brokerage sees the company as a key long-term compounding story in India’s consumer sector and views recent stock weakness as a temporary buying opportunity.
Macquarie
Macquarie has maintained its ‘Underperform’ rating on the stock with the target price of Rs. 3,100, with a downside of 26.17 percent from CMP of Rs. 4,199. Macquarie maintains an ‘Underperform’ on Avenue Supermarts, citing slightly moderated same-store sales growth compared to Q1, flat performance in general merchandise and apparel despite the early festive season, and a continued decline in net cash levels as key concerns.
Written By Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
