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Informist, Friday, Jul. 10, 2026

 

By Ruchira Kagita

 

MUMBAI – DMart operator Avenue Supermarts Ltd. is likely to report a modest set of earnings for the June quarter. Its net store additions for the quarter have disappointed some analysts. Like-for-like on-year sales growth is estimated to be below expectations, according to brokerages. The company's earnings before interest, taxes, depreciation, and amortisation margin is expected to be flat.

 

The retailer's net profit for the June quarter is expected to rise 9.5% on year to INR 9.09 billion, according to the average of estimates from seven brokerages. The profit estimates range from a low of INR 8.5 billion from Motilal Oswal Financial Services Ltd. to a high of INR 9.5 billion from Emkay Global Financial Services Ltd.

 

The company's revenues are estimated to rise almost 17% year-on-year to INR 186.12 billion for the June quarter. The highest sales expectation is of INR 188.79 billion from Prabhudas Lilladher Pvt. Ltd. and the lowest is INR 183.43 billion from Emkay Global.

 

The healthy store additions in the March quarter should have contributed "incrementally" to the company's growth for the June quarter, Emkay Global said. However, Avenue Supermarts' like-for-like sales growth is seen around 3% on year for the reporting quarter. This is lower than its recent trend of 7-8% growth, the brokerage said.

 

Avenue Supermarts' standalone sales per square foot likely contracted 3% year-on-year for the June quarter, Nuvama Wealth Management Ltd. said. This decline is expected despite the company having added 58 stores in the March quarter, it said. "After pick up in momentum in the past (March) quarter, this comes as a negative surprise," Nuvama said.

 

Sales for the June quarter rose 15% on year to INR 183.43 billion, the company had said in its business update. Brokerages were disappointed with the provisional figures. Motilal Oswal had estimated the company's sales to rise 17-18% on year. Citigroup had pegged the grocery-selling chain to post 19.5% on-year growth for the quarter.

 

Avenue Supermarts' EBITDA is expected to increase 15.6% on year to INR 15.17 billion, according to the average of seven estimates. This implies that its EBITDA margin could be around 8%, largely unchanged from the year-ago quarter. Higher store additions in the March quarter are likely the key factor impacting the company's margin, according to analysts.

 

Friday, the company's shares ended largely flat at INR 4,081 on the National Stock Exchange. The stock has fallen nearly 7% since it announced its earnings for the March quarter. The company is set to release its earnings for the June quarter Saturday.

 

Of the 10 research reports on the company available with Informist, four have a 'buy' rating on the stock, with an average target price of INR 4,766 per share. Three brokerages have 'hold' and 'sell' recommendations each.

 

The Following are the estimates for the June quarter earnings of Avenue Supermarts, in INR billion, from seven brokerages in descending order of net profit:

 

Brokerage	Net Sales	Net Profit	EBITDA
Emkay Global Financial Services Ltd	183.43	9.50	15.46
JM Financial Institutional Securities Pvt Ltd	183.44	9.45	15.25
Elara Securities (India) Pvt Ltd	186.91	9.36	15.11
Nuvama Wealth Management Ltd	183.44	9.31	15.22
Kotak Securities Ltd	188.35	8.80	14.88
Prabhudas Lilladher Pvt Ltd	188.79	8.69	15.10
Motilal Oswal Financial Services Ltd	188.50	8.50	15.20
Average	186.12	9.09	15.17

 

End

 

Edited by Shubhayan Bhattacharya

 

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