Avenue Supermarts (DMart) reported a margin miss despite better-than-expected like-for-like sales growth, sending the stock down about 3% in pre-open

Mon 12 Oct 2026

Like-for-like growth

9.5 percent

Street expectation for like-for-like growth

7.5 percent

EPS growth

7 to 7.5 percent

Current valuation multiple

60 to 65 times

Peak valuation multiple

90 to 100 times

Heard on business television between 09:13:44 - 09:16:44 IST.

• Like-for-like growth came in at 9.5% versus street expectations of 7.5%, but EBITDA was lower than expected.
• Management attributed the EBITDA miss to store expansions and wage inflation at entry level raising operating expenses.
• Gross margins remained stable year-on-year with a mild improvement, but EPS growth was only about 7-7.5%.
• Valuation has fallen from a peak of 90-100 times to about 60-65 times, but the PEG ratio remains elevated given slower growth, a concern for shareholders.
• Brokerages have cut their EPS estimates and calls on the stock following the results.

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