Avenue Supermarts Ltd. share price target

We attended Avenue Supermarts (DMart)’s FY26 analyst call, wherein the new CEO reaffirmed continuity of the company’s philosophy around disciplined execution with a target of ~15% YoY annual store additions, noting that the store acceleration seen in FY26 (+20% YoY) may not be feasible in FY27.

Avenue Supermarts’ (DMART) Q1FY27 standalone revenue growth of ~15% YoY was subpar, while EBITDA margin of 8.3% was a tad better than our expectations.

Avenue Supermarts (DMART) revenue growth moderated to ~15% YoY in 1QFY27, as like-for-like (LFL) growth decelerated to 5.5% (vs. 10.8% in 4QFY26).

Author: Vincent K A - Sr. Research Analyst sharper focus on home delivery as the preferred channel. The accelerated pace of store additions is expected to temporarily stretch inventory days and result in moderately higher debt; however, the company is expected to maintain its everyday-low-discount model strategy. DMart currently trades at 71x 1Yr Fwd PE (3yr avg =76x). We maintain our BUY rating with a target price of Rs.5,063 by valuing at 70x based on FY28 EPS....

With a 15% upside from the CMP, we maintain a BUY rating on the stock.

Avenue Supermarts (DMART) delivered strong revenue growth (+19% YoY) in Q4FY26, pushing past the 500-store milestone in FY26, which indicates encouraging execution on the capex front.

Food share increased by 70bps YoY amidst panic buying by consumer led by geopolitical crisis LFL at 10.8% in Q4 is likely to get moderated in coming quarters as panic buying normalizes We raise our FY27/FY28 EPS estimates by 3.3%/0.3%, factoring in the 4QFY26 EBITDA/PAT beat of 3.6%/5.4% driven by lower cost of retail. However, operating metrics in Q4FY26 remain weak, with sales/store up 1.3%, sales/ft up 1.8%, and bill cuts/store/day declining 5.5% YoY (due to increase in store openings). D'Mart...

Avenue Supermarts (DMART) delivered a strong beat on profitability in 4QFY26, driven by gross margin (GM) expansion and operating leverage.

Avenue Supermarts (DMart)’s revenue growth trajectory improved to 19% YoY in 4QFY26 (vs. 15% YoY in 9MFY26), driven by acceleration in store additions (though most of it was back-ended) and likely recovery in SSSG (vs. ~6% in the last few quarters).

Avenue Supermarts (DMart) continues to operate as a business focused on stability rather than growth acceleration. Margins delivered a positive surprise, with EBITDA margin at 8.4%, driven by execution discipline and cost control despite an unfavourable mix.

With a 17% upside from the CMP, we maintain a BUY rating on the stock.

Avenue Supermarts (DMART) delivered a strong beat on profitability in 3QFY26, driven primarily by gross margin (GM) expansion.

DMart Ready added 10 new fulfillment centers in key metro markets, while rationalizing presence by exiting five smaller cities. The platform now operates across 19 cities, reinforcing focus on high-potential urban clusters ....

With a 15% upside from the CMP, we maintain a BUY rating on the stock

Dmart’s Q2FY26 results were in line and soft. Standalone Rev/GP/EBITDA/APAT came in at 15.4/15.9/11.3/5.1% YoY. We believe Rev was impacted by monsoons, store cannibalization, shift to Qcom and price deflation.

We attended Avenue Supermarts (DMart)’s FY25 analyst meet, wherein the management indicated acceleration in store additions as the utmost priority.

D-Mart's annual analyst call reinforced our cautious stance due to 1) Rising land acquisition costs, increasing wage inflation, and a deteriorating product mix which can further pressurize margins in the near to medium term. 2) Structural challenges persist in the apparel segment. 3) stiff competition from quick commerce players (more in top 20 cities). And 4) little visibility on D-Mart...

Author: Vincent K A - Sr. Research Analyst improving the white label product mix, will reduce margin pressure in the future. We a target price of Rs.4,657 by valuing it on a DCF basis, implies 74x on FY27 EPS....

With an 18% upside from the CMP, we maintain a BUY rating on the stock.

GM&A share at 24.7% for 1QFY26 up by 210bps vs 22.26% in FY25 We cut our FY26/FY27 EPS estimates by 1.0%/1.9%, respectively, as we expect margin pressures to persist due to 1) Continued high competitive intensity...