More Stories

Informist, Tuesday, Apr. 28, 2026

By Avishek Rakshit

KOLKATA – Avenue Supermarts Ltd. is expected to post strong on-year growth in revenue and net profit for the March quarter on the back of new store additions. The company added 58 stores during the March quarter, taking its total store count to 500, which is expected to support the retailer's top-line growth. However, competition from e-commerce and quick commerce portals persists, which is likely to weigh on sales, brokerages said.

Same-store sales growth is expected to remain in single digits in Jan-Mar, in line with the past several quarters, brokerages said. This is a key barometer in the retail industry which measures the extent to which a single store generated revenue over a period of time, and often compares a financial year or a quarter on a year-on-year and sequential basis. 

Avenue Supermarts' net profit for the March quarter is expected to increase 11% on year to INR 6.9 billion, according to the average of estimates from seven brokerages. The revenue for the quarter is expected to increase 21% on year to INR 174.8 billion, according to the same estimates. Sequentially, the bottom line is expected to decline 26% and the top line is expected to fall nearly 1%. Avenue Supermarts will declare its financial results for the March quarter and year ended Mar. 31 on Saturday. 

The estimates for net profit range from INR 6.06 billion by Motilal Oswal Financial Services Ltd. to INR 7.78 billion by JM Financial Institutional Securities Pvt. Ltd. The revenue estimates range from INR 172 billion by HDFC Securities Ltd. to INR 177.05 billion by Kotak Securities Ltd.

In its quarterly business update earlier this month, Avenue Supermarts said its revenue for the March quarter increased around 19% on year to INR 172 billion. 

Brokerages including Kotak Securities, Motilal Oswal, and Nuvama attributed Avenue Supermarts' revenue growth to new store additions and modest same-store-sales growth. 

Avenue Supermarts is expected to report an earnings before interest, tax, depreciation, and amortisation, or EBITDA, of INR 12.02 billion in the reporting quarter, according to the average of estimates from six brokerages. The highest estimate for EBITDA is INR 12.54 billion by JM Financial and the lowest is INR 11.50 billion by brokerage Motilal Oswal. 

Nuvama expects gross margin to improve to 14% in the March quarter as against 13.5% a year ago, aided by a better product mix and a similar flow-through to EBITDA. Brokerage Motilal Oswal expects both gross and EBITDA margins to rise 10 basis points on year. 

However, Prabhudas Lilladher Pvt. Ltd. expects Avenue Supermarts to face margin pressure as most of the new store additions are in tier-2 and tier-3 cities, where margins are lower compared to metros and major cities. 

Brokerages will be keeping an eye on the company's store expansion plans and same-store sales growth in the coming months. They will also monitor the impact of quick commerce platforms on the company's revenue performance, 

Of the eight research reports on the company available with Informist, three have a ‘buy' or equivalent recommendation on the stock with an average target price of INR 4,233. Another three have a 'hold' recommendation with an average target price of INR 4,045 and the remaining two have a ‘sell' recommendation with an average price of INR 4,100 per share. 

Tuesday, shares of the company ended 0.83% higher at INR 4,544.40 on the National Stock Exchange. The stock is up nearly 19% since the company announced its December quarter earnings on Jan. 10.

Following are the Jan-Mar earnings estimates for Avenue Supermarts based on reports from seven brokerages in descending order of the estimate of net profit, in INR billion: 

End

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000  

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.