Avenue Supermarts (DMart) reported a Q2 margin miss despite 18% revenue growth, leading brokerages to cut target prices

Mon 12 Oct 2026

Net profit growth

7.6 percent

Revenue growth

18 percent

EBITDA growth

14 percent

Margin this quarter

7.3 percent

Like-for-like growth

9.5 percent

Heard on business television between 07:36:23 - 07:39:23 IST.

• Q2 business update showed revenue growth of around 18% but margins and profitability disappointed.
• Net profit grew only 7.6%, EBITDA grew 14%, margin fell to 7.3% from 7.6%.
• Like-for-like growth improved to 9.5% from 5.5% in Q1, but revenue per store declined 1%.
• Margin miss attributed to lower share of high-margin general merchandise/apparel and higher share of low-margin food and non-FMCG products.
• Jefferies maintained hold and cut target to 4,000 from 4,500; Citi maintained sell and cut target to 3,250 from 3,300; Morgan Stanley cut target to 4,182 from 4,464 on lower FY27-29 margin estimates.

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