Avenue Supermarts share price target after Q2 results: Shares of Avenue Supermarts dipped to their fresh 52-week low levels during Monday’s trading session after the Radhakishan Damani-led firm reported its second quarter results for the financial year 2026-27.
Shares of D-Mart owner fell nearly 5% during Monday’s trading session and hit to fresh 52-week low levels. The Maharashtra-headquartered retail supermarket chain had reported 8.5% year-on-year (YoY) growth in its net profit for Q2FY27. For investors tracking Avenue supermarts share price outlook, here’s what brokerages Motilal Oswal and ICICI Securities have to say.
Avenue Supermarts Q2 results review
Avenue Supermarts growth recovered but profitability and free cash flow (FCF) weakened during the September quarter due to weaker gross margin and higher cost of retailing (CoR) per square feet.
The company’s EBTIDA/PAT missed estimates by 3%/7% as EBITDA margin contracted by 30 basis points (bp) on an annual basis, highlighted Motilal Oswal Financial Services.
“While the QC dent remains concentrated in dense metro catchments for now, we believe overall discounting and customer acquisition intensity are unlikely to moderate in the near term and could weigh on DMART’s growth and margins over the medium term,” stated the brokerage in its report.
Avenue Supermarts standalone revenue grew by 18.4% on an annual basis, driven by improved like-for-like (LFL) growth of 9.5%. GM pressure, entry-level wage inflation and faster growth in operating expense, weighed on EBITDA margin, highlighted ICICI Securities in its report.
“DMART’s Q2FY27 performance improved, with LFL growth of 9.5% and a pickup in store additions, but gross margin contraction, wage inflation and higher finance costs restricted PAT growth to 7.6% YoY,” noted the brokerage in its report while stressing that Avenue Supermarts’ near-term margin expansion and operational upside appear limited.
Avenue Supermarts share price target
Motilal Oswal revised its target price for DMart-owner Avenue Supermarts. The brokerage maintained its ‘Neutral’ rating for the stock with a target price of ₹3925 per share. “We assign a ~35x Dec’28E Pre-Ind AS EV/EBITDA multiple (implying ~57x Dec’28 P/E) to arrive at our TP of INR3,925 (vs. INR4,000). Reiterate Neutral.”
ICICI Securities maintained ‘hold’ rating for the stock with a target price of ₹3,700 per share. “Maintain HOLD rating with a DCF-based revised target price of INR 3,700 (INR 4,200 earlier). At our target price, DMART would trade at an implied P/E multiple of ~48x based on Sep’28E EPS.”
Avenue Supermarts share price
The stock was trading 3.75% lower at ₹3388 per share on BSE at 1:11 pm. Its share price value dipped to fresh 52-week low of ₹3,362.15 per share. The stock has declined 21.58% in one year, 25.92% in two years, and 12.33% in three years.
Avenue Supermarts Q2 result recap
The company reported a net profit of ₹742.98 crore in Q2FY27 which is 8.5% higher than the same quarter in previous financial year. The company’s total income surged by ₹19,657 crore in Q2FY27. Its earnings before interest, tax, depreciation, and amortisation surged by 14.7% YoY to ₹1,393 crore in Q2 FY27.
