Avenue Supermarts stock fell under pressure after second quarter results showed slower EPS growth and margin compression

Mon 12 Oct 2026

Like-for-like sales growth

9.5 percent

New stores FY26

85 stores

New stores H1 this year

18 stores

EBITDA margin this quarter

7.3 percent

EBITDA margin year ago

7.7 percent

Heard on business television between 14:49:13 - 14:52:13 IST.

• Like-for-like sales grew 9.5% versus street expectations of around 7.5%.
• Management cited wage inflation at entry level leading to marginal increase in operating expenses, while gross margins stayed stable year-on-year.
• Company opened 85 new stores in FY26 and 18 in H1 of this year, raising operational costs before new stores ramp up revenue.
• EBITDA margins fell 40 basis points to 7.3% from 7.7%, with revenue growing 18.5% but net profit growing only 7.5%.
• Valuation multiple has compressed from over 80-100 times to about 60-65 times, but on PEG basis stock hasn't become cheaper; multiple brokerages downgraded the stock post results.

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