Avenue Supermarts shares fall on Q3 business updates, more details

Shares of Avenue Supermarts, operator of the DMart retail chain, declined over 2% on Monday as sentiment remained cautious following a mixed third quarter update. Standalone revenue for the quarter rose 13% year-on-year to ₹17,612.6 crore, compared with ₹15,565 crore in the corresponding period last year.

While the company maintained double-digit growth, the three-year compound annual growth rate moderated to 15.7%, reflecting a slowdown in momentum. Store expansion continued, with 10 new stores added this quarter and 27 so far in FY26, resulting in a network growth of 14.2% over the past year.

Avenue Supermarts stock fell 2.23% to Rs 3636.35 in the current session against the previous close of Rs 3721 . Market cap of the firm stood at Rs 2.35 lakh crore. Later, the stock ended 2.02% lower at Rs 3645.70. 

According to brokerages, realisations may have come under pressure due to recent GST cuts. Citi reiterated its 'Sell' rating and noted sharp moderation in growth to rising competitive intensity from quick commerce platforms, a weak demand environment and a higher share of store additions in smaller towns. Citi also flagged concerns around moderating same store sales growth, margin pressure from quick commerce driven pricing and cost dynamics, and stretched valuations.

The brokerage pointed out that Avenue Supermarts has reported a year-on-year EBITDA margin decline in 11 of the last 12 quarters."

Morgan Stanley assigned an 'Equal-weight' rating with a price target of ₹4,552 and estimated that implied same store sales growth for the quarter came ta flat to low single digits. The stock is down nearly 3% so far in 2026. Investors are expected to monitor the company's operating performance, assortment mix, and management commentary on further store expansion in the detailed Q3 results. Avenue Supermarts faces competition from both traditional retailers and emerging quick commerce platforms, with margin pressures and slower growth trends remaining at the forefront of analyst concerns.