Avenue Supermarts (AVEU.NS): FY26 Analyst Meet Takeaways: Store Expansion Falls Short of Expectations

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Avenue Supermarts (AVEU.NS): FY26 Analyst Meet Takeaways: Store Expansion Falls Short of Expectations

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28 Jul 2026 13:23:40 ET │ 15 pages

Avenue Supermarts (AVEU.NS)

FY26 Analyst Meet Takeaways: Store Expansion Falls Short of

Expectations

CITI'S TAKE

Key highlights from FY26 analyst meet: (a) internal target is to grow the store Sell

network by ~15% annually; (b) store expansion in FY26 (85 stores / 20.5%

growth) also benefited due to some property getting ready ahead of time; (c) Price (28 Jul 26 15:30) Rs3,846.60

FY27 SSG should likely remain at current levels (8.1% in FY26); (d) slowdown Target price Rs3,300.00↓

in Metro stores SSG is due to store density, saturation and competition; (e)

from Rs3,400.00there are more number of QC players vs last years, however, not witnessing

any significant impact of QC in tier 2/3 markets; (f) DMart Ready is doubling Expected share price -14.2%down in 11 cities with focus on sustainable and profitable e-com model; (g) return

stepping-up investments in management bandwidth, capability, Expected dividend yield 0.0%technology and execution/expansion. We lower our store addition estimate

factoring management guidance and now estimate 80/95/110 in Expected total return -14.2%

FY27/28/29E (vs 95/120/150) and cut our EPS estimate by 2-3% leading to Market Cap Rs2,508,929M

revised DCF-based TP of Rs3,300 (Rs3,400 earlier). Maintain Sell. US$26,158M

Store expansion — Internal target is to grow the store network by ~15% annually

(including a mix of owned and LT lease). Also, stores will continue to follow cluster-

based expansion approach and build density in new markets (added 5 new states in

Price PerformanceFY26) and continue to expand in established markets. As of FY26, 68 stores were on