Avenue Supermarts reported standalone revenue of ₹19,206 crore for Q2FY27, up 18.4% year-on-year. Revenue growth accelerated from 15.1% in the first quarter and 19% in the fourth quarter of fiscal 2026. The Q2 revenue was 1.2% above CLSA’s estimate and 1.1% ahead of consensus.
The company added 15 new stores during the quarter, compared with eight stores in the year-ago period, taking its total store count to 518 at the end of Q2FY27. The store network increased by about 20% year-on-year.
However, store additions in the first half remained broadly steady, with 18 stores added in H1FY27 compared with 17 in H1FY26. The company had added just three stores in the first quarter of FY27, making the Q2 addition a notable sequential improvement.
CLSA has a ‘High Conviction Outperform’ rating on Avenue Supermarts with a price target of ₹5,723. The brokerage said that consumer price index inflation, based on July and August data, stood at 4.9% during the quarter, compared with 3.9% in Q1FY27.
Bernstein has an ‘Outperform’ rating on the stock with a price target of ₹5,000. The brokerage said Q2 standalone revenue growth of 18% was broadly in line with consensus and marked a recovery from Q1FY27 as well as the average growth seen in Q4FY26 and Q1FY27.
Bernstein said investors will be watching bill-cut growth and the company’s gross margin profile going ahead. It also expects Avenue Supermarts to maintain the pace of store additions seen in FY26 during FY27 and expects Q2 margins to be better than anticipated.Of the 32 analysts that have coverage on DMart, 10 of them have a ‘Buy’ rating, 13 have a ‘Hold’ rating, while nine have a ‘Sell’ call on the stock.
Shares of Avenue Supermarts settled 0.75% higher at ₹3,830 on Thursday. The stock has declined about 16% over the past six months and is up around 3% year-to-date.
First Published: Oct 5, 2026 8:48 AM IST