Avenue Supermarts Limited has announced significant leadership changes, including the cessation of an Independent Director and multiple senior management role transitions effective May 2026. The company communicated these changes to stock exchanges on 2nd May 2026, outlining both board-level and operational management restructuring.

Director Cessation

The Board of Directors took on record the conclusion of the second term of Mr. Chandrashekhar Bhave (DIN: 00059856) as an Independent Director on 16th May 2026. He will cease to hold office as an Independent Director with effect from the close of business hours on 16th May 2026. The Board placed on record their deep appreciation for the valuable contribution, guidance, and support rendered by Mr. Bhave during his tenure with the Company.

Senior Management Changes

Based on the recommendation of the Nomination and Remuneration Committee, the Board approved several changes in Senior Management Personnel effective 2nd May 2026. These changes involve role transitions, additional responsibilities, and reporting structure modifications across key operational areas.

Key Personnel Transitions

Mr. Rohit Mundhra will transition from Internal Auditor to Regional Head - Operations (Rajasthan). Due to this change in role and reporting structure, he will cease to be Senior Management Personnel effective 2nd May 2026.

Mr. Ravi Sharma, currently Head - Risk and Compliance (Partner Ecosystem), will take on the additional role of Internal Auditor for financial year 2026-27. He will continue to be categorized as Senior Managerial Personnel. Mr. Sharma brings 35 years of leadership experience across automobile and retail sectors and has been associated with Avenue Supermarts for 17 years, having previously led finance and human resources functions.

Mr. Hitesh Shah, presently Head - Pharma Business, will assume oversight of Food Business in addition to Pharmacy Business. He will be re-designated as Chief Business Officer - Pharmacy and Food Services while continuing as Senior Managerial Personnel. Mr. Shah joined the company in March 2007 and has 36 years of experience across multiple industries.

Mr. Stephen Thomas, Head - Food Services, will report to Mr. Hitesh Shah and will cease to be Senior Managerial Personnel due to the change in his reporting structure.

Management Restructuring Overview

These organizational changes reflect the company's strategic approach to operational efficiency and management structure optimization. The transitions maintain continuity while redistributing responsibilities across key business functions including operations, audit, compliance, and business development.

Morgan Stanley has maintained its positive stance on Avenue Supermarts Limited , reaffirming an Overweight rating with a target price of ₹5,188. The global investment bank's recommendation comes amid a strategic preference for discretionary and retail sector stocks during the current market environment.

Investment Rationale

The brokerage firm cited several factors supporting its bullish view on the DMart operator. Morgan Stanley expressed preference for discretionary and retail stocks as a defensive strategy amid ongoing geopolitical volatility and inflationary pressures affecting global markets.

Growth Prospects and Market Position

Avenue Supermarts is viewed by Morgan Stanley as relatively insulated from current market headwinds compared to other sectors. The investment bank highlighted the company's visible growth levers that are expected to support performance through FY27.

Market Context

The Overweight rating reflects Morgan Stanley's confidence in the retail sector's resilience during periods of market uncertainty. The brokerage's preference for discretionary and retail stocks suggests these sectors may offer better risk-adjusted returns amid current geopolitical tensions and inflation concerns.

The ₹5,188 target price indicates Morgan Stanley's expectation of significant upside potential for Avenue Supermarts shares, supported by the company's strong fundamentals and growth trajectory in the Indian retail market.