Earnings Miss: Avenue Supermarts Limited Missed EPS By 7.9% And Analysts Are Revising Their Forecasts

Avenue Supermarts Limited (NSE:DMART) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like the results were a bit of a negative overall. While revenues of ₹136b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.9% to hit ₹10.59 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Avenue Supermarts

Taking into account the latest results, the current consensus from Avenue Supermarts' 16 analysts is for revenues of ₹617.2b in 2025. This would reflect a major 27% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 39% to ₹51.80. In the lead-up to this report, the analysts had been modelling revenues of ₹625.1b and earnings per share (EPS) of ₹53.18 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at ₹4,085, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Avenue Supermarts analyst has a price target of ₹4,700 per share, while the most pessimistic values it at ₹3,100. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Avenue Supermarts'historical trends, as the 21% annualised revenue growth to the end of 2025 is roughly in line with the 20% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.7% per year. So it's pretty clear that Avenue Supermarts is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Avenue Supermarts. Long-term earnings power is much more important than next year's profits. We have forecasts for Avenue Supermarts going out to 2026, and you can see them free on our platform here.

Even so, be aware that Avenue Supermarts is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.