Avenue Supermarts (DMART IN) – Q2FY26 Result Update – Tepid store metrics, Rich valuations limit upside – HOLD
Published on 12 Oct 2025
D’Mart has opened 8 stores in 2QFY26, and we expect a significant pick up in store openings in 2H with an estimate of 60/65/70 in FY26/FY27/FY28. We expect some bounce back in 2H as easing inflation, festival season and GST rates rationalization play out. With high margins in base quarters over by 2Q26, we anticipate 2H26 to report double-digit profit growth. We estimate 7.8% EPS growth in FY26 and 14.5% CAGR over FY26-28. We expect back-ended returns given rich valuations of 73.6xFY28E EPS. Maintain Hold.
