Avenue Supermarts shares fell over 3% as soon as the trade opened, as the company reports earnings for Q4FY26. This came despite brokerages raising their target prices and giving positive comments on the stock.

Motilal Oswal on Avenue Supermarts

Motilal Oswal Financial Services raised the target price to Rs 5,200 from Rs 5,000, implying an upside of over 13% from the current market price. The brokerage retained its ‘Buy’ rating on the back of strong store additions during the quarter. 

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“Sustained acceleration in store additions remains the key growth trigger for DMart, in our view. We built 85 and 90-store additions in FY27 and FY28. While the competitive intensity from quick commerce could remain high in the near-to-medium term, we believe DMart’s value-focused model and superior store economics would ensure its competitiveness and customer relevance over the long run, especially in tier 2+ towns,” it added.

Nuvama on Avenue Supermarts

The international brokerage, Nuvama Institutional Equities, also increased the target price to Rs 4,975 from Rs 4,351, implying an upside of 8.5%. Same Store Sales Growth re-accelerated to 10.8% in Q4, which was the first double-digit print in seven quarters. 

The profit before tax margin expanded in Q4FY26 and Q3, reversing compression seen in 12 of the prior 13 quarters. Store additions hit a record 85 in FY26 (versus 50 in FY25), the highest in DMart’s history. However, the brokerage maintained its ‘Hold’ rating on the stock. 

DMart Q4FY26 performance 

The company, which owns and operates the DMart retail chain, recorded a net profit of Rs 656.6 crore in Q4 of FY26, an increase of 19% year-over-year from Rs 550.90 crore reported in the corresponding quarter of the previous financial year. 

The company’s revenue from operations also surged 19% YoY to Rs 17,684 crore as against Rs 14,872 crore posted in the same quarter a year back.

Its EBITDA rose 26.7% YoY to Rs 1,210.5 crore from Rs 955.1 crore. Margins expanded to 6.85% from 6.42% in the same period last year.

DMart Q4FY26: New store addition

Avenue Supermarts added 58 stores in the quarter and crossed the milestone of 500 DMart stores.

Its net profit margin remained the same at 3.7% compared to Q4FY25, while basic earnings per share (EPS) increased to Rs 10.09 from Rs 8.47 a year ago.

The company noted that geopolitical tensions led to a temporary spike in consumer buying in March 2026, which normalised toward the end of the month. It also added that operations have not faced any significant supply chain disruptions so far.

For the whole year for FY26, its total revenue rose 15.9% YoY to Rs 66,968 crore. EBITDA grew 15.7% to Rs 5,255 crore, while net profit surged 10.1% to Rs 3,224 crore.

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Dmart share price performance

The share price of Avenue Supermarts has risen 2% in the last five trading sessions. The stock has surged a bit in the past one month and 10.32% in the last six months. Dmart’s stock price has increased 14% over the previous one year. 

Avenue Supermarts Q3FY26

Avenue Supermarts recorded an 18.27% rise in consolidated net profit at Rs 855.78 crore for Q3 of FY26, compared with Rs 723.54 crore in the same period last year.

Its revenue from operations surged 13.32% YoY to Rs 18,100.88 crore, up from Rs 15,972.55 crore in the corresponding quarter of the previous financial year. Total expenses rose 13% YoY to Rs 16,942.62 crore in Q3FY26, while total income, including other income, increased 13.25% to Rs 18,117.81 crore.