Avenue Supermarts Q2 Results: A Detailed Analysis

Avenue Supermarts, the parent company of DMart, has posted its Q2 results for the fiscal year ending March 2026. The company has reported a 4% rise in profit during the second quarter of fiscal 2026, with its topline growing over 15% to Rs 15,676 core.

Q2 Highlights

• Revenue up 15.5% at Rs 16,676.30 crore versus Rs 14,444.50 crore.
• Ebitda up 11.0% at Rs 1,213.65 crore versus Rs 1,093.72 crore.
• Margin at 7.3% versus 7.6%.
• Net Profit up 4% at Rs 685.01 crore versus Rs 659.58 crore.

Brokerages have shared bullish calls on Avenue Supermarts after the company registered its earnings for the September quarter of the fiscal year ending March 2026, with multiple firms hiking the target price. Stock market news and updates can be found on our website.

Nuvama’s ‘Hold’ Call

Nuvama has maintained a ‘hold’ call on Avenue Supermarts, while hiking the target price from Rs 4,544 to Rs 4,580. The firm believes margin pressure, despite persisting, has eased. This comes on the back of Dmart posting a margin contraction that is the lowest in the last four quarters.

Dmart’s margins saw a contraction from 7.6% last year to 7.3% this year, thus accounting for a 30 basis point hit. Nuvama added that Avenue Supermarts’ topline momentum remained intact, while capital work in progress (CWIP), at Rs 1,500 crore, was at the highest level, implying robust store additions in the coming quarters. To learn more about investing in the stock market, visit our website.

Motilal Oswal’s ‘Buy’ Call

Motilal Oswal also retained a ‘buy’ call on Avenue Supermarts, while hiking the target price from Rs 4,800 to Rs 5,000. The firm believes the peak of competitive intensity is finally behind, which could mean an easier growth path ahead for Avenue Supermarts.

The brokerage further noted the company had 60 store additions in the pipeline this fiscal, though rising depreciation and amortisation cost would hurt profitability. For the latest Nifty trends and updates, visit our website.

Analysts’ Ratings

Out of 31 analysts tracking the company, 10 maintained a ‘buy’ rating, 10 recommended a ‘hold,’ and 11 suggested ‘sell,’ according to Bloomberg data. The average 12-month consensus price target implied a flat performance.

Overall, Avenue Supermarts’ Q2 results have been well-received by brokerages, with many firms hiking their target prices. However, the company still faces margin pressure and rising depreciation and amortisation costs. Investors should keep a close eye on the company’s future developments and Sensex updates before making any investment decisions.

Conclusion

In conclusion, Avenue Supermarts’ Q2 results have been a mixed bag, with the company reporting a rise in profit and revenue, but also facing margin pressure and rising costs. Brokerages have shared bullish calls on the company, but investors should exercise caution and keep a close eye on the company’s future developments before making any investment decisions. For more information on Indian stock market news and updates, visit our website.