Shares of Avenue Supermarts, the operator of DMart retail stores, slipped 3% on Monday as investors reacted to the company's September-quarter (Q2) business update released late Friday.

The retailer posted revenue of ₹16,218 crore in Q2, a 15.4% rise from a year earlier. While the number looks healthy, it's only slightly below the company's three-year average growth rate of 15.8%. 

DMart also added eight new stores in the quarter, bringing its total count to 432. For the first half of the financial year, store additions stand at 17.

Brokerage View

Brokerages remained cautious following the update. Goldman Sachs kept its“sell” rating and trimmed its price target to ₹3,370 from ₹3,450. It pointed out that sales growth was weaker than expected, despite last year's low base, and said store expansion hasn't shown much acceleration. 

The brokerage also cut its sales growth forecast for FY26 to 18% from 20% and trimmed earnings estimates for FY26–FY28 by 2%.

JPMorgan was more balanced, maintaining a“neutral” rating with a price target of ₹4,350. It noted that the modest revenue growth is likely to keep pressure on the stock in the near term. DMart is set to release its full Q2 results on October 11.

Technical View

According to SEBI-registered research analyst Sunil Kotak, the weekly chart suggests the stock is sitting right on a major support zone between ₹4,250 and ₹4,350. Historically, this has been a robust floor with the stock having bounced more than one time from these levels, Kotak said.

He also pointed out that the relative strength index (RSI) is currently sitting at the 48–49 mark, a level which has been an area of strong buying in the past while the 21-week simple moving average (SMA) is also coinciding with the same support zone. 

What to Watch Next

Looking ahead, investors will be watching management's commentary during the results announcement. Key areas include the impact of recent GST cuts, the performance of DMart Ready (its online arm), and the pace of new store openings in the months ahead.

While Monday's drop shows investor caution after the business update, Kotak said the support zone near ₹4,250–₹4,350 could prove to be a critical level for the stock, especially if buyers step in again.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'neutral' amid 'normal' message volume.

Avenue Supermarts' stock has risen 20.5% so far in 2025.

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