ICICI cuts Avenue target to INR 3,700: what it means for Avenue Supermarts stock

Published on 10/25/2026 at 02:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ICICI Securities cut its target from INR 4,200 to INR 3,700 on October 11, 2026. Avenue Supermarts stock grew Q2 revenue 18.4 percent.

Targets and margins shape valuation

ICICI Securities reduced its target to INR 3,700 on October 11, 2026.
Avenue Supermarts posted a 7.3 percent EBITDA margin in the second quarter of fiscal 2027.
Avenue Supermarts had a market capitalization of INR 2.1 trillion as of October 23, 2026.

Avenue, INE192R01011, Illustration mit AI erstellt.

Avenue Supermarts (INE192R01011) faces a lower analyst valuation after ICICI Securities cut its target from INR 4,200 to INR 3,700 on October 11, 2026. The broker retained its Hold rating after the retailer reported strong sales growth but slower profit expansion, as DSIJ reported.

What does the target cut mean?

The second-quarter figures show the tension behind the revised valuation. Standalone revenue rose 18.4 percent year on year to INR 192.06 billion in the quarter ended September 30, 2026, while net profit increased 7.6 percent to INR 8.04 billion. EBITDA grew 14.1 percent to INR 14.03 billion, but the EBITDA margin fell to 7.3 percent from 7.6 percent a year earlier, according to The Hindu BusinessLine.

ICICI Securities linked the pressure to higher staff and operating costs, as well as an 87 percent year-on-year increase in finance costs to INR 596 million. The broker also cited competition from quick-commerce operators as a risk to foot traffic and planned purchases. Its target reduction of INR 500 represents an 11.90 percent cut from the previous target.

Three dated signals for Avenue

On October 3, 2026, Avenue Supermarts reported standalone second-quarter revenue of INR 192.06 billion, up 18.4 percent year on year. On October 10, 2026, the company disclosed second-quarter net profit of INR 8.04 billion and 15 new stores, taking the network to 518, according to FinancialFilings. On October 11, 2026, ICICI Securities lowered its target to INR 3,700 from INR 4,200 while keeping its Hold rating.

The operating footprint continues to expand, but productivity and financing costs are becoming more important to the valuation. Retail business area reached 21.4 million square feet in the second quarter, compared with 17.9 million square feet a year earlier, while the broker reported debt of INR 41.0 billion in the first half of fiscal 2027 versus INR 14.8 billion a year earlier.

Valuation remains tied to execution

Avenue Supermarts had a market capitalization of INR 2.1 trillion as of October 23, 2026. Its reported 52-week range was INR 3,102.30 to INR 4,644.00 on the same date. The combination of 18.4 percent revenue growth and a 7.3 percent EBITDA margin leaves store productivity, product mix and cost control as the central valuation tests.