Avenue Supermarts: Should You Buy, Sell Or Hold DMart After Q2 Result?

Brokerages shared bullish calls on Avenue Supermarts Ltd. after the company registered its earnings for the September quarter of the fiscal year ending March 2026, with multiple firms hiking the target price.

Nuvama and Motilal Oswal are among the brokerages that hiked target prices on the counter, while Elara Capital said the D-Mart Ready realignment is finally coming through.

DMart's parent Avenue Supermarts posted a 4% rise in profit during the second quarter of fiscal 2026. The company's topline grew over 15% to Rs 15,676 core.

Avenue Supermarts Q2 Highlights (Cons, YoY)

• 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.

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.

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.

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.