Shares of Avenue Supermarts (DMart) fell by about 2.89% to ₹4,264.80 on Wednesday after its Q1FY26 results and muted sales growth disappointed street expectations, prompting mixed reactions from brokerages.
According to its quarterly filing with exchanges, Avenue Supermarts reported standalone revenue of ₹15,932.12 crore for Q1FY26, up 16.2% YoY, but below some estimates. The company added nine new stores during the quarter, taking the total count to 424 stores as of June 30, 2025, with one under renovation.
Morgan Stanley maintained an underweight rating with a target price of ₹3,260, citing slower growth compared to prior quarters and expecting EBITDA margins to moderate to around 7.8% for Q1FY26 versus 8.7% in Q1FY25.
Macquarie also maintained an underperform stance with a target of ₹3,000, noting sales growth was slightly lower than Q4 and gross margins may improve sequentially due to a favorable product mix.
On the other hand, CLSA reiterated an outperform rating with a higher target of ₹5,549, highlighting healthy store additions and strong long-term fundamentals despite the marginal miss on revenue estimates.
Meanwhile, Avenue Supermarts’ Q1FY26 update filed with exchanges confirmed the revenue figures and store count mentioned above, stating that the reported numbers are subject to a limited review by auditors.
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