Avenue Supermarts 2QFY26 Performance Update

▶Revenue grew 15.4% YoY/ 1.8% QoQ to Rs 162.18 bn during the quarter. This growth has come on a base of 14.2% YoY growth in 2QFY25. Growth during 1QFY26 stood at 16.2%.

▶In our view growth is impacted by intense competition from quick commerce, deflation in some product categories and dilution/ cannibalization due to rapid store expansion.

▶Revenue per sq.ft grew 1.7% YoY to Rs 9,045 in 2QFY26. In the base quarter of 2QFY25 revenue per sq.ft grew 0.4% YoY. In 1QFY26, revenue per sq.ft growth stood at 1.7%.

▶Revenue per store grew 0.7% YoY to Rs 375 mn. In the base quarter of 2QFY25 revenue per store grew 1.7% YoY. In 1QFY26, revenue per store grew ~2% YoY

▶Company added 8 stores during 2QFY26 vs 6 stores added during 2QFY25. Added 17 stores during 1HFY26 vs 12 stores added during 1HFY25. Total store count now stands at 432.

▶At CMP of Rs 4,418 stock is trading at EV/ EBITDA multiple of 45.1x on FY27E/ 38.2x on FY28E.