Avenue Supermarts Ltd has forecast a 16% year-on-year revenue growth in the first quarter of FY2026. Standalone revenue for the operator of the DMart retail chain is estimated to grow to Rs 15,932.1 crore during the April-June period, according to a quarterly business update released to the stock markets on Wednesday.
As of June 30, the DMart retail chain operator has 424 stores across India.
Last month, DMart announced the opening of its first flagship store in Uttar Pradesh. The new store, located at Rattan Mall in Agra, is a strong move for the retail giant, which previously had a presence only in Ghaziabad, which is part of the National Capital Region.
The company follows the ownership model for its retail stores and adopts a cluster-based approach to expansion, focusing on increasing penetration in existing areas before moving into new ones.
But Morgan Stanley maintained an ‘underweight’ rating on Avenue Supermarts with a target price of Rs 3,260. The brokerage firm sees the opening of the Agra store as a positive move. “We view this opening in the state of Uttar Pradesh as a positive move and will closely monitor the company’s expansion momentum in the state, where the opportunity for store openings is huge,” the note said. Avenue Supermarts is one of India’s leading retail chains, operating under the brand name DMart.
The company focuses on providing a wide range of products at competitive prices while meeting the needs of the Indian middle class. Shares of Avenue Supermarts closed 1.22% lower at Rs 4,398 per share.
This is compared to a 0.35% decline in the benchmark Nifty 50. It has declined 7.87% in the last 12 months and has gained 23.48% so far this year.
According to Bloomberg data, nine of the 31 analysts tracking the company have maintained a ‘buy’ rating, while several have advised ‘hold,’ and 13 have recommended ‘sell.’ The average 12-month consensus price target suggests a downside of 8.8%.
