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Avenue Supermarts Shares Fall Despite Strong Second-Quarter Revenue Growth
Avenue Supermarts, which runs D-Mart stores, reported higher sales for the three months ending September 30, 2026.
Its sales were 18.4% higher than in the same quarter a year earlier.
Sales also rose compared with the previous quarter.
The company said it had 518 stores, including one in Sanpada that is closed while it is rebuilt.
Even with the sales growth, the company’s share price fell by more than 5%.
Two brokerages remained positive on the stock and gave price targets.
Technical analysts, who study price movements, said the share was showing signs of weakness.
They identified lower price levels the stock could test if the decline continues.
Avenue Supermarts reported standalone Q2 FY27 revenue of ₹19,206.18 crore, up 18.4% year on year.
Revenue rose 4.7% from ₹18,343.49 crore in Q1 FY27.
The company had 518 stores as of September 30, 2026; this includes a Sanpada outlet closed for reconstruction.
CLSA and Bernstein retained Outperform ratings, with price targets of ₹5,723 and ₹5,000, respectively.
Technical analysts described bearish momentum, citing a break below the ₹3,650–₹3,630 swing-low zone.
- Who
- Avenue Supermarts, operator of the D-Mart retail chain.
- What
- It reported Q2 FY27 standalone revenue growth while its shares fell by more than 5%.
- Where
- The company operates D-Mart stores across several states and markets in India.
- When
- The quarter ended September 30, 2026; the article also describes the share-price movement as occurring today.
- Why
- The articles do not establish a definitive reason for the share-price fall; technical analysts pointed to bearish price momentum.
Positive Brokerage Outlook
Bearish Technical Outlook
Stock outlook
Positive Brokerage Outlook
CLSA maintained a High Conviction Outperform rating, while Bernstein kept an Outperform rating. Bernstein said revenue growth was broadly in line with consensus and improved from recent quarters.
Bearish Technical Outlook
Technical analysts said the stock showed continued weakness, traded below key moving averages, and had broken below its recent swing-low zone.
What to watch next
Positive Brokerage Outlook
Bernstein expects store additions to continue at the FY26 pace and said Q2 margins could be better than previously anticipated; it highlighted bill-cut growth and gross margins for investors to track.
Bearish Technical Outlook
SBI Securities identified ₹3,550–₹3,530 as immediate support, while My Advisor Alpha said the stock could test ₹3,500 and that a rebound toward ₹3,750 could face selling pressure.
Key facts
- Q2 FY27 standalone revenue
- ₹19,206.18 crore
- Year-on-year revenue growth
- 18.4%, from ₹16,218.79 crore
- Sequential revenue growth
- 4.7%, from ₹18,343.49 crore in Q1 FY27
- Store count
- 518 as of September 30, 2026
- CLSA rating and target
- High Conviction Outperform; ₹5,723
- Bernstein rating and target
- Outperform; ₹5,000
- Technical support levels cited
- SBI Securities cited ₹3,550–₹3,530; My Advisor Alpha said the stock could test ₹3,500.
Sources
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