Earnings Update: Avenue Supermarts Limited (NSE:DMART) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Avenue Supermarts Limited (NSE:DMART) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to ₹4,205 in the week after its latest quarterly results. Revenues of ₹167b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹10.49, missing estimates by 2.2%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the consensus forecast from Avenue Supermarts' 19 analysts is for revenues of ₹694.9b in 2026. This reflects a decent 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 13% to ₹47.33. Before this earnings report, the analysts had been forecasting revenues of ₹698.8b and earnings per share (EPS) of ₹48.44 in 2026. 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.

Check out our latest analysis for Avenue Supermarts

The consensus price target held steady at ₹4,359, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Avenue Supermarts analyst has a price target of ₹6,300 per share, while the most pessimistic values it at ₹3,100. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 21% 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 8.0% per year. So it's pretty clear that Avenue Supermarts is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Avenue Supermarts. 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. The consensus price target held steady at ₹4,359, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Avenue Supermarts going out to 2028, and you can see them free on our platform here..

You can also see whether Avenue Supermarts is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.