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Avenue Supermarts falls as much as 6% as Citi keeps 'sell' despite 18.4% Q2 revenue growth
Avenue Supermarts reported Q2FY27 standalone revenue of Rs 19,206 crore, up 18.4 percent year-on-year, and added 18 stores in H1 FY27 versus 17 a year earlier. Shares fell as much as 6 percent on 5 October after Citi kept 'sell'.
The numbers
Figures from Moneycontrol
| Q1FY27 revenue growth: | 15.1 percent |
|---|---|
| Q4FY26 revenue growth: | 19 percent |
| Citi target price: | Rs 3,300 |
| Intraday share low on NSE: | Rs 3,575.70 |
Why it matters to operators and investors
With store additions steady at 18 versus 17 and growth driven largely by organic execution, DMart looks like a scale benchmark rather than an acquirer or target, and a sell-side-led pullback is a useful read on how richly the market prices high-growth grocery peers.
What to watch next
- Whether the stock closes below the Rs 3,575.70 intraday low on the NSE in coming sessions
- Any broker downgrade or target cut that follows Citi's Rs 3,300 target
- Q3 standalone revenue growth compared with Q2's 18.4% and Q1's 15.1%
- The pace of store additions in H2 compared with the 18 added in H1
- Management commentary on margins and like-for-like growth at the next earnings call
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Avenue Supermarts is likely to keep opening stores at a similar pace to H1's 18, and management is expected to stress store productivity over a sharp jump in openings.
- Other brokerages are likely to publish post-result notes that split between defending the stock on the growth acceleration and agreeing with Citi on valuation.
- Citi is likely to hold its 'sell' call and Rs 3,300 target unless a later quarter shows revenue growth clearly above the 18.4% just reported.
- Domestic institutional investors may add on weakness near the intraday low of Rs 3,575.70, while short-term traders are likely to keep the stock volatile.
- Quick-commerce and modern-trade rivals may use the stock's weakness to argue that DMart's value-retail model faces more competition, which could affect how investors value the sector.
The source
First seen