Avenue Supermarts Share Price Falls About 5% Despite an 18.4% Q2 Revenue Jump: What Is Weighing on DMart, From Flat Metro Stores and Quick Commerce to a 10 Times Book Valuation

Avenue Supermarts share price fell about 5% on 5 October even though the DMart operator reported a strong Q2 FY27 business update on 3 October. Standalone revenue rose 18.4% to Rs 19,206.18 crore, up 4.7% from the previous quarter, and the store count reached 518. The stock slid to around Rs 3,621 against a 1 October close of Rs 3,813, while the Sensex rose, so the fall is stock-specific.

If you are searching for why the DMart share price is falling and why Avenue Supermarts shares fell after a good update, this article covers the DMart Q2 update and Q2 FY27 numbers, what the update leaves out, the store count and productivity maths, the Q1 results, EBITDA margin and like-for-like trend, quick commerce and DMart Ready, analyst views, valuation and the 52-week low, and what to watch in the Q2 results on 10 October. Price data is based on NSE and BSE figures, so recheck it before acting.

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Why Is Avenue Supermarts Share Price Falling Despite a Strong Q2 Update?

The DMart share price is falling because investors read the update as strong on the surface and uncertain underneath. Five points weigh on the stock:

1. The update has no like-for-like sales, margin or profit figures, so the quality of growth is unknown.
2. The store count grew about 20% in a year, slightly faster than revenue, which hints at softer productivity per store.
3. Q1 like-for-like growth slowed to 5.5%, with flat sales in older metro stores, which analysts blame on quick commerce.
4. At about 80 times earnings and 10 times book value, the stock has little room for disappointment.
5. Retail stocks were weak: V2 Retail fell as much as 19% on its own update, and DMart traded near its 52-week low.

A market that rose on 5 October raised the bar, so Avenue Supermarts shares falling 5% on a day of gains sent a clear message that investors want proof of profit growth and not just sales growth. The DMart Q2 update did not provide it.

DMart Q2 FY27 Update: Numbers Behind the Avenue Supermarts Share Price

Metric	Q2 FY27	Q2 FY26	Q1 FY27
Standalone revenue	Rs 19,206.18 crore	Rs 16,218.79 crore	Rs 18,343.49 crore
Growth	Up 18.4% year on year, up 4.7% on the quarter	Up 15.4% year on year	Up 15.1% year on year
Store count at quarter end	518	432	503
Stores added in the quarter	15	Not shown	3
Simple revenue per store	About Rs 37.1 crore	About Rs 37.5 crore	About Rs 36.5 crore

Revenue growth accelerated from 15.1% in Q1 to 18.4% in Q2, which is a positive. The company said the revenue figure is subject to limited review by its auditors and gave no profitability or same-store data, so the full results on 10 October carry the real information.

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Store Count Versus Revenue: The Productivity Question for the Avenue Supermarts Share Price

DMart added 86 stores in twelve months, taking the count from 432 to 518, a rise of 19.9%. Revenue grew 18.4%, so the simple revenue per store slipped about 1.2% from Rs 37.5 crore to Rs 37.1 crore, my calculation.

This is only a hint. The figure ignores store size and age, and 15 stores opened in Q2 contributed only part of a quarter. Even so, it fits the like-for-like slowdown seen in Q1: if new stores are ramping slowly and older metro stores are flat, revenue per store falls even while total revenue grows, which is what the Avenue Supermarts share price is reflecting.

Q1 FY27 Results Behind the Avenue Supermarts Share Price Fall

Q1 FY27 metric	Figure	Comparison
Consolidated revenue	Rs 18,794.53 crore	Up 14.9% year on year
Consolidated net profit	Rs 860.44 crore	Up 11.33% from Rs 772.81 crore
EBITDA	Rs 1,499 crore	Up 15.4%, margin 8.0% against 7.9%
PAT margin	4.6%	Against 4.7% a year earlier
Like-for-like growth, stores older than two years	5.5%	Against 7.1% in Q1 FY26 and 10.8% in Q4 FY26
Staff costs	Up over 30%	Limited margin expansion
Stores added	3	Total 503

The Avenue Supermarts share price fell over 4% on 13 July after those results. The key point, which management stated, is that growth in older stores in large metros, where revenue per square foot is highest, was flat in Q1, while non-metro stores kept growing well.

Quick Commerce, DMart Ready and the Avenue Supermarts Share Price

Analysts link flat metro sales to quick commerce, which delivers groceries in minutes. DMart's own online arm, DMart Ready, discontinued operations in seven cities in Q1 and now runs in 11, against a peak of 25. Its subsidiary revenue grew only 5% against 16% to 20% in the previous four quarters, and its loss rose 32% to Rs 75.3 crore.

Citi noted that profit growth has lagged revenue growth in 10 of the last 13 quarters, which explains why the market focuses on earnings and not sales when pricing the Avenue Supermarts share price. Non-metro stores, with like-for-like growth of 14% to 15% according to HDFC Securities, are the bright spot.

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What Analysts Say About the Avenue Supermarts Share Price

Brokerage	View after Q1 FY27 or earlier
Goldman Sachs	Metro same-store sales flat year on year, likely due to quick commerce
JPMorgan	Like-for-like growth a key negative; expects subdued stock performance
Citi	Cut FY27 to FY29 revenue estimates by 4% to 6% and EPS by 5% to 7%
Jefferies	Q1 better than headline because Q4 saw pre-buying, but flat metro sales are a concern
HDFC Securities	Add rating
Motilal Oswal	Buy with a Rs 5,000 target set earlier in 2026, on faster store additions

Ratings are mixed and not uniformly optimistic: on one data provider, about 44% of 32 analysts rate the stock a Hold. The bulls rely on store additions and non-metro growth, and the bears on quick commerce and valuation, so the Avenue Supermarts share price sits between the two camps.

Avenue Supermarts Share Price Today: Valuation and Key Numbers

Item	Figure	What it tells you
Company	Avenue Supermarts (DMart)	National value retailer
1 October close	Rs 3,813	NSE
5 October price	About Rs 3,621	Down about 5%, my calculation from reported levels
Market capitalisation	About Rs 2.36 lakh crore	Down about Rs 12,500 crore in a session
Price to earnings	About 77 to 81 times	Premium for a slowing like-for-like trend
Price to book	About 10 times	Very high for a retailer
Return on capital employed	About 16.4%	Solid, not exceptional
One-year return	About -14%	Underperforming
Dividend	None	Cash is reinvested in stores
Promoter holding	74.5%	Radhakishan Damani and family

Valuation is the core of the debate. At about 77 times earnings, the Avenue Supermarts share price assumes years of 20% earnings growth, while recent profit growth was 11% in Q1 and like-for-like growth slowed.

Avenue Supermarts Share Price Levels to Watch

Level	Why it matters
Rs 4,644	52-week high
Rs 3,997 to Rs 4,037	200-day moving average, mid to late September
Rs 3,870 to Rs 3,894	50-day moving average
Rs 3,813	1 October close, now resistance
Rs 3,643.60	Intraday level at 10:23 AM on 5 October
Rs 3,528.65	52-week low, set on 2 March 2026

The Avenue Supermarts share price trades below both its 50-day and 200-day averages, and a close under Rs 3,528.65 would be a fresh 52-week low. These are reference levels based on past prices, not forecasts.

What to Watch for the Avenue Supermarts Share Price in DMart Q2 Results on 10 October

1. Like-for-like growth for stores older than two years, against 5.5% in Q1 and 7.1% a year earlier.
2. EBITDA margin against 8.0% in Q1 and 7.3% in Q2 FY26, with gross margin and staff costs.
3. Whether growth in older metro stores is still flat.
4. DMart Ready losses and city footprint after the exits.
5. Store addition guidance, with the company targeting roughly 15% growth in store area a year.

The Q2 FY26 base is soft, with net profit of Rs 684.85 crore, up only 4%, and an EBITDA margin of 7.3%, so year-on-year profit growth should look better for the Avenue Supermarts share price. The market will care more about like-for-like trends.

Risks Behind the Avenue Supermarts Share Price

Quick commerce: Flat sales in older metro stores can persist if instant delivery keeps taking baskets, which would weigh on the Avenue Supermarts share price.

Valuation: A multiple near 80 times earnings can pull the Avenue Supermarts share price lower if growth stays near 10%.

Margin pressure: Staff costs grew over 30% in Q1, and gross margin gains may not last, which matters for the Avenue Supermarts share price.

Weak productivity: Revenue per store slipping while the store count grows can hurt returns and the Avenue Supermarts share price.

Online losses: DMart Ready's loss rose 32% in Q1, although it has shrunk its footprint, so it remains a drag on the Avenue Supermarts share price.

Conclusion

The Avenue Supermarts share price fell about 5% on 5 October despite 18.4% Q2 revenue growth and a store count of 518, because the update lacks like-for-like and margin data and revenue per store looks soft. At about 80 times earnings and near its 52-week low, Avenue Supermarts shares need the 10 October results to show better same-store growth. Rs 3,528.65 is the support to watch for the Avenue Supermarts share price and Rs 3,813 the resistance. Consult a SEBI-registered advisor before making any decision.

Frequently Asked Questions

Why is Avenue Supermarts share price falling today?

Ans. The Avenue Supermarts share price fell about 5% on 5 October because the Q2 update gave no like-for-like or margin data, revenue per store looks soft, and the stock trades near 80 times earnings.

What did the DMart Q2 update show for revenue and store count?

Ans. Standalone revenue was Rs 19,206.18 crore, up 18.4% from Rs 16,218.79 crore and up 4.7% on the quarter. The store count reached 518, with 15 added in Q2, yet the Avenue Supermarts share price fell.

What is DMart's like-for-like growth?

Ans. Like-for-like growth for stores older than two years was 5.5% in Q1 FY27, against 7.1% a year earlier and 10.8% in Q4 FY26. Q2 figures come with results on 10 October and will drive the Avenue Supermarts share price.

How does quick commerce affect DMart?

Ans. Analysts say quick commerce kept sales flat in older metro stores. DMart Ready has exited seven cities and now operates in 11 against a peak of 25.

When are DMart Q2 results?

Ans. The board meets on 10 October 2026 to approve unaudited Q2 and half-year results. They will include like-for-like growth and margins.

What are the key levels for Avenue Supermarts share price?

Ans. The 52-week low is Rs 3,528.65 and the 52-week high is Rs 4,644. The 1 October close of Rs 3,813 is now resistance. These are reference levels and not predictions.

Is Avenue Supermarts share price expensive?

Ans. The stock trades at about 77 to 81 times earnings and about 10 times book value. That is a high premium for like-for-like growth of 5.5%.

Are Avenue Supermarts shares a good buy after the fall?

Ans. This article does not constitute investment advice. The business is growing and store additions continue, but valuation and quick commerce are risks. Consult a SEBI-registered financial advisor before investing.