Avenue Supermarts Q2 business update shows margin miss and weak profitability despite strong revenue growth; brokerages cut target prices

Mon 12 Oct 2026

Revenue growth Q2

18 percent

Net profit growth

7.6 percent

EBITDA growth

14 percent

EBITDA margin

7.3 percent

Like-for-like growth Q2

9.5 percent

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

• Q2 revenue growth was strong at 18%, in line with expectations, but margins missed and overall profitability was impacted.
• Net profit grew 7.6%, EBITDA grew 14%, margin at 7.3% versus 7.6% earlier; profit growth lagged revenue growth in 11 of last 14 quarters.
• Like-for-like growth recovered strongly to 9.5% versus 5.5% in Q1, but revenue per store declined 1%.
• Margin miss attributed to general merchandise and apparel share moderating by 10 basis points (high-margin products), food contribution rising 40 basis points (low margin), and non-FMCG segment moderating 25 basis points.
• Jefferies maintained hold, cut target price to 4,000 rupees from 4,500, citing healthy demand but disappointing profitability and cutting EPS estimates by 2-3%.
• Citi maintained sell, cut target price to 3,250 rupees from 3,300, citing quick commerce competition and lower other income.

The call above is Citi's, reported here as they made it. Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.