Shares of Avenue Supermarts Ltd (DMart) fell following a cut in price target by Goldman Sachs after the company reported its Q2 FY26 standalone results.
Q2 Performance
- Revenue: ₹16,218 crore (+15.4% YoY), slightly below the three-year CAGR of 15.8%.
- Store Additions: 8 new stores in Q2, taking the total to 432. H1 FY26 saw 17 new store openings.
Brokerage Assessments
- Goldman Sachs: Maintained “sell” rating; reduced price target to ₹3,370 from ₹3,450. Cited weaker-than-expected sales growth and lack of acceleration in store expansion. FY26 sales growth projection reduced to 18% from 20%, and EPS estimates for FY26–28 cut by 2%.
- JPMorgan: Maintained “neutral” rating; price target at ₹4,350. Noted that moderate revenue growth could pressure near-term stock performance.
Market Consensus
Among 31 analysts covering Avenue Supermarts:
- 10 recommend buy
- 10 recommend hold
- 11 recommend sell
Key factors to watch include GST impact, performance of DMart Ready, and future store additions.
Summary
- DMart Q2 revenue grew 15.4% YoY to ₹16,218 crore.
- Store count: 432 with 8 new openings in Q2.
- Goldman Sachs: Price target cut to ₹3,370; FY26 sales forecast lowered.
- JPMorgan: Maintains neutral rating at ₹4,350.
- Analyst consensus remains mixed, reflecting uncertainty on near-term growth and store expansion.
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