Avenue Supermarts Shares Fall Nearly 4% After Q4 Results; DMart Margins, Outlook in Focus

Shares of Avenue Supermarts, which operates the popular retail chain DMart, came under pressure after the company announced its Q4 FY26 results on Saturday, May 2nd. Despite reporting a strong set of numbers, investor sentiment turned cautious, which lead to a sharp decline in the stock.

Avenue Supermarts Share Price Today

Avenue Supermarts shares fell as much as 3.76% after the results announcement. The stock is currently trading around Rs. 4,371.10, down by over Rs. 200 in intraday trade. However, the broader trend remains positive, with the stock gaining nearly 15.17% over the past three months and rising about 10.53% over the last one year.

Avenue Supermarts Q4 FY26 Results

Avenue Supermarts reported a strong performance in the March quarter, beating expectations on profitability. Revenue grew 19% year-on-year to Rs. 17,684 crore, while net profit also rose 19% to Rs. 656.6 crore.

EBITDA saw a stronger jump of 26.7% to Rs. 1,210.5 crore, with EBITDA margins improving to 6.84% compared to 6.42% in the same period last year. Growth in mature stores stood at 10.8%, reflecting steady demand across existing outlets.

Full-Year FY26 Performance

For the full financial year FY26, Avenue Supermarts continued its steady growth trajectory. Total income rose 15.9% to Rs. 66,968 crore, while net profit increased 10.1% to Rs. 3,224 crore.

EBITDA for the year climbed 15.7% to Rs. 5,255 crore. The company also expanded aggressively, adding 85 new stores during the year and crossing the milestone of 500 stores across India.

Brokerage View: Growth Strong, Margins Under Watch

According to a report by Antique Stock Broking, " In our understanding, revenue trajectory will improve given the inflation/price hikes in staples and accelerated store openings. However, the sustainability of the improving margin trend is uncertain, due to increased competition and DMart's focus on enhancing customer experience, both leading to limited scope for margin expansion."

The brokerage firm has maintained a "Hold" rating on the stock, revising its target price to Rs. 4,524 from Rs. 4,185, based on 40x FY28 EV/EBITDA valuation.

About Avenue Supermarts

Avenue Supermarts Limited is the company behind DMart, one of India's best-known value retail chains. It was incorporated in 2000 by Radhakishan Damani, opened its first store in Powai, Mumbai in 2002, and is headquartered in Mumbai/Thane, Maharashtra DMart operates supermarkets and hypermarkets selling groceries, staples, dairy, frozen foods, toiletries, apparel, footwear, homeware, and other daily-use products. The business is built around an everyday-low-price model, with a focus on tight cost control and gradual expansion

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