Avenue Supermarts share price target after Q2 results: Shares of Avenue Supermarts dipped to their fresh 52-week low levels during Monday’s trading session after the Radhakishan Damani-led firm reported its second quarter results for the financial year 2026-27.
Shares of D-Mart owner fell nearly 5% during Monday’s trading session and hit to fresh 52-week low levels. The Maharashtra-headquartered retail supermarket chain had reported 8.5% year-on-year (YoY) growth in its net profit for Q2FY27. For investors tracking Avenue supermarts share price outlook, here’s what brokerages Motilal Oswal and ICICI Securities have to say.
Avenue Supermarts growth recovered but profitability and free cash flow (FCF) weakened during the September quarter due to weaker gross margin and higher cost of retailing (CoR) per square feet.
The company’s EBTIDA/PAT missed estimates by 3%/7% as EBITDA margin contracted by 30 basis points (bp) on an annual basis, highlighted Motilal Oswal Financial Services.
“While the QC dent remains concentrated in dense metro catchments for now, we believe overall discounting and customer acquisition intensity are unlikely to moderate in the near term and could weigh on DMART’s growth and margins over the medium term,” stated the brokerage in its report.