Prabhudas Lilladher cuts target for Avenue Supermarts stock to INR 3,214

Published on 10/20/2026 at 03:39 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q2 revenue reached INR 19,206 crore, up 18.4 percent year on year. Avenue Supermarts stock added 15 stores and earned INR 804 crore in Q2 FY27.

Valuation and operating evidence

Prabhudas Lilladher set a INR 3,214 target on October 11, 2026.
Standalone EBITDA margin fell to 7.3 percent in the second quarter of fiscal 2027.
Avenue Supermarts stock was last at INR 3,304 on NSE on October 19, 2026 at 3:29 p.m. IST.

Avenue, INE192R01011, Illustration mit AI erstellt.

Avenue Supermarts (ISIN INE192R01011) faced a lower valuation target after Moneycontrol reported on October 12, 2026 that Prabhudas Lilladher cut its target from INR 4,027 to INR 3,214 and changed its rating from Hold to Reduce in a report dated October 11, 2026. The revision followed Avenue Supermarts' second-quarter results.

FinancialFilings published the company's release dated October 10, 2026. Standalone revenue reached INR 19,206 crore in the quarter ended September 30, 2026, up 18.4 percent from INR 16,219 crore, while net profit rose 7.6 percent to INR 804 crore from INR 747 crore.

Q2 growth outpaces profit

The operating mix was less favorable than the revenue headline. Standalone EBITDA increased 14.1 percent to INR 1,403 crore in Q2 FY27, but EBITDA margin declined to 7.3 percent from 7.6 percent a year earlier, while profit after tax margin fell to 4.2 percent from 4.6 percent, according to the same release.

For the first half of fiscal 2027, revenue rose 16.8 percent to INR 37,550 crore and net profit increased 10.3 percent to INR 1,739 crore. Avenue Supermarts also added 15 stores in the quarter, taking the network to 518 locations as of September 30, 2026.

What does the margin pressure mean?

Moneycontrol said Prabhudas Lilladher cited stronger quick-commerce competition, limited pricing power and weaker store metrics. Its report said sales per store declined 0.7 percent year on year and bills per store per day fell 4.1 percent, despite bill cuts increasing 14.4 percent.

Three dates shape the valuation

On October 3, 2026, an Avenue Supermarts update reported standalone quarterly revenue of INR 19,206.18 crore. On October 10, 2026, the results release recorded INR 804 crore in quarterly profit and 15 new stores. On October 11, 2026, Prabhudas Lilladher cut its target to INR 3,214 and moved its rating to Reduce.

Next reporting date

Investing.com lists January 11, 2027 as the next reporting date for Avenue Supermarts.

Indian quote and valuation

Avenue Supermarts was last at INR 3,304 on NSE on October 19, 2026 at 3:29 p.m. IST. The 52-week range was INR 3,296.00 to INR 4,644.00, while market capitalization stood at INR 2.2 trillion.