Shares of Avenue Supermarts, the operator of the DMart retail chain, fell over 4 percent in Friday's morning trade after the company reported a softer-than-expected business update for the April-June quarter, prompting brokerages to retain their cautious stance on the stock.
Avenue Supermarts shares were trading at Rs 4,016.50, down 4.07 percent in morning trade. Despite the decline, the stock remains up about 8 percent so far in 2026, outperforming the Nifty 50, which has declined around 7 percent during the same period. The company commands a market capitalisation of Rs 2.62 lakh crore.
The retailer reported standalone revenue of Rs 18,343.49 crore for the quarter ended June 30, 2026, up 15.1 percent from Rs 15,932.12 crore in the corresponding period last year. During the quarter, Avenue Supermarts added three new stores, taking its total store count to 503.
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Goldman Sachs maintained its 'Sell' rating on the stock with a target price of Rs 4,000. The brokerage said revenue growth moderated in the June quarter despite strong store additions towards the end of the March quarter and higher FMCG inflation. It also said that store additions during the quarter were slower than the pace seen in recent years.
According to Goldman Sachs, the key upside risks to its cautious view include a faster-than-expected pace of store expansion, successful scaling of DMart Ready, a slower shift towards online grocery shopping, and a stronger recovery in discretionary spending by middle-income consumers.
Macquarie also retained its 'Underperform' rating on Avenue Supermarts with a target price of Rs 3,100, implying around 26 percent downside from Thursday's closing price. The brokerage described the June quarter sales performance as disappointing, saying both revenue growth and store additions fell short of its expectations. It also expects same-store sales growth to have moderated from the March quarter.
The stock reaction came after the company's June quarter business update showed a slower pace of expansion and sales growth than some analysts had anticipated, even as the retailer continued to expand its store network.
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