Synopsis: Avenue Supermarts Limited posted strong Q3 FY26 results, while CLSA turned bullish with a higher target, even as Goldman Sachs and Jefferies maintained cautious views on growth and margins.
This large-cap stock, engaged in operating DMart supermarket chains, offering everyday low-priced groceries, FMCG, apparel, and household items across India, jumped 2.97 percent after the company reported strong December quarterly results with a 24.96 percent QoQ increase in net profit, while brokerages shared mixed views on its future outlook.
With a market capitalization of Rs. 2,45,131.15 crores, the share of Avenue Supermarts Limited has reached an intraday high of Rs. 3,917.95 per equity share, rising nearly 2.97 percent from its previous day’s close price of Rs. 3,805.10. Since then, the stock has retreated and is currently trading at Rs. 3,767 per equity share.
Q3 FY26 Result
Coming into the quarterly results of Avenue Supermarts Limited, the company’s consolidated revenue from operations increased by 13.32 percent YOY, from Rs. 15,972.55 crore in Q3 FY25 to Rs. 18,100.88 crore in Q3 FY26, and grew by 8.54 percent QoQ from Rs. 16,676.30 crore in Q2 FY26.
In Q3 FY26, Avenue Supermarts Limited’s consolidated net profit increased by 18.28 percent YOY, reaching Rs. 855.78 crore compared to Rs. 723.54 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 24.96 percent, from Rs. 684.85 crore.
The basic earnings per share increased by 18.26 percent and stood at Rs. 13.15 as against Rs. 11.12 recorded in the same quarter in the previous year, FY2025. Avenue Supermarts Limited’s revenue and net profit have grown at a CAGR of 19 percent and 15.78 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 18 percent and 13.4 percent, respectively. Avenue Supermarts Limited has an earnings per share (EPS) of Rs. 44, and its debt-to-equity ratio is 0.07x.
Analyst Viewpoints
CLSA has reiterated its “High Conviction Outperform” rating on Avenue Supermarts and raised its target price to Rs. 6,185 per share, citing stronger profit growth and improved earnings visibility. The brokerage has increased its FY26-FY28 earnings estimates by 1-7 percent, supported by operational efficiency, scale benefits, and steady store expansion, while remaining positive on long-term growth prospects.
In contrast, Goldman Sachs maintains a Sell rating with a target price of Rs. 3,500, flagging slowing like-for-like growth and viewing recent margin expansion as unsustainable. Jefferies has a Hold rating with a target of Rs. 4,050, supported by strong EBITDA margins and stable store additions. Other brokerage views are added in the next table.
Here are the brokerage views on Avenue Supermarts Limited
| Brokerage | Rating | Target Price | Upside / Downside |
|---|---|---|---|
| Prabhudas Lilladher | Hold | ₹3,783 | 0.42% |
| ICICI Securities | Hold | ₹4,000 | 6.19% |
| Motilal Oswal | Buy | ₹4,600 | 22.11% |
| Goldman Sachs | Sell | ₹3,500 | -7.09% |
| Jefferies | Hold | ₹4,050 | 7.51% |
| Nuvama | Hold | ₹4,351 | 15.50% |
| Citi | Sell | ₹3,150 | -16.38% |
| CLSA | High Conviction Outperform | ₹6,185 | 64.19% |
Store Expansion Strategy
As of September 2025, Avenue Supermarts Limited operates a strong retail network of 432 DMart stores across 19 cities in India. The highest store concentration is in Maharashtra with 120 outlets, followed by Gujarat with 68 stores, and Telangana with 45 stores. The company also has a significant presence in Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Punjab, and Chhattisgarh.
Company Overview
Avenue Supermarts Limited was founded in 2000 and is headquartered in Mumbai, and operates as DMart, running a leading supermarket chain in India focused on value retailing. The company offers everyday low prices on foods, FMCG, non-foods, apparel, and general merchandise across hypermarkets.
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