Avenue Supermarts Shares Fall 2% as Analysts Flag Slowing Growth, Margin Pressure

Avenue Supermarts shares declined nearly 2% on Monday following the company's mixed third quarter update, with analysts expressing concerns over slowing revenue growth momentum and increasing competitive pressures. The DMart operator's performance highlighted broader challenges facing traditional retail amid rising quick commerce competition.

Financial Performance and Growth Concerns

Avenue Supermarts reported standalone revenue growth of 13% year-on-year for the December quarter, though the absolute figure showed a marginal decline from earlier estimates.

Metric:	Q3 Current	Q3 Previous Year	Growth (%)
Revenue from Operations:	₹17,612.60 cr	₹15,565.00 cr	+13%
Store Count:	442 stores	-	-
Store Additions (Quarter):	10 stores	-	-
Three-year CAGR:	15.70%	-	-

While the company maintained double-digit growth, revenue momentum continued to moderate, with analysts noting that realisations may have come under pressure due to recent GST cuts. The company added 10 stores during the quarter, bringing total additions to 27 stores in the current fiscal year.

Analyst Reactions and Market Sentiment

Brokerages remained divided on Avenue Supermarts' prospects, with mixed ratings reflecting uncertainty about the company's ability to navigate current challenges.

Brokerage:	Rating	Price Target	Key Concerns
Citi:	Sell	₹3,250	Quick commerce competition, weak demand
Morgan Stanley:	Equal-weight	₹4,552	Flat to low single-digit same store sales

Citi maintained its 'Sell' rating, attributing the sharp moderation in growth to rising competitive intensity from quick commerce platforms, weak demand environment, and higher share of store additions in smaller towns. The brokerage highlighted that Avenue Supermarts has reported year-on-year EBITDA margin decline in 11 of the last 12 quarters.

Competitive Pressures and Operational Challenges

The retail chain faces mounting pressure from quick commerce platforms, which are impacting both pricing strategies and customer footfall. Morgan Stanley estimated implied same store sales growth for the quarter at flat to low single digits, indicating challenges in existing store performance.

Challenge Area:	Impact
Quick Commerce Competition:	Pricing pressure, margin decline
Store Expansion Strategy:	Higher share in smaller towns
Same Store Sales Growth:	Flat to low single digits
EBITDA Margins:	Decline in 11 of last 12 quarters

The company's store additions over the past year stand at 14.20%, indicating steady network expansion even as growth trends soften.

Market Performance and Outlook

Avenue Supermarts shares traded 1.77% lower at ₹3,654, with the stock down close to 3% in early trading. Among 29 analysts tracking the company, eight have 'Buy' ratings, 12 recommend 'Hold', and nine maintain 'Sell' calls.

Investors will closely monitor the company's detailed third quarter results for insights into operating performance, changes in assortment mix, and management commentary on store expansion strategy amid evolving retail dynamics.

The Indian banking and financial services sector demonstrated remarkable resilience and growth momentum during Q3 FY26, with major institutions across segments reporting strong business expansion. From non-banking financial companies to public and private sector banks, the comprehensive performance data reveals a sector firing on all cylinders, driven by robust deposit mobilization and credit growth.

NBFC Sector Performance

Bajaj Housing Finance emerged as a standout performer with exceptional growth across key operational metrics. The company's gross disbursements reached impressive levels, while its asset base expanded significantly year-over-year.

Metric	Q3 FY26	Q3 FY25	Growth (%)
Gross Disbursements	₹16,535.00 cr	₹12,571.00 cr	+31.53%
Assets Under Management	₹1,33,400.00 cr	₹1,08,314.00 cr	+23.00%
Loan Assets (AR)	₹1,17,290.00 cr	₹95,570.00 cr	+22.71%

Bajaj Finance continued its expansion trajectory with substantial customer base growth and strong asset quality. The company's customer franchise reached 115.40 million as of December 31, 2025, compared to 97.12 million in the previous year, representing an addition of 18.28 million customers. New loans booked grew 15% to 13.90 million in Q3 FY26, while AUM expanded 22% to approximately ₹4,85,900.00 crore. The deposits book stood at ₹71,000.00 crore, up from ₹68,797.00 crore in December 2024.

Public Sector Banking Excellence

Bank of Baroda delivered comprehensive growth across its global operations, with particularly strong performance in retail advances. The bank's global business expanded 12.22% year-over-year to ₹28,90,661.00 crore, driven by robust domestic operations.

Parameter	December 2025	December 2024	Growth (%)
Global Business	₹28,90,661.00 cr	₹25,75,943.00 cr	+12.22%
Global Advances	₹13,43,912.00 cr	₹11,73,034.00 cr	+14.57%
Global Deposits	₹15,46,749.00 cr	₹14,02,909.00 cr	+10.25%
Retail Advances (Domestic)	₹2,85,464.00 cr	₹2,43,360.00 cr	+17.30%

Bank of India and IDBI Bank also reported strong provisional performance, with Bank of India's global business reaching ₹16,27,098.00 crore, up 12.50% year-over-year, while IDBI Bank's total business expanded to ₹5,46,634.00 crore, reflecting a robust 12% increase from ₹4,89,245.00 crore.

Small Finance Bank Momentum

The small finance banking segment demonstrated exceptional growth momentum, with multiple institutions reporting double-digit expansion rates. AU Small Finance Bank led the charge with total deposits climbing 23.3% year-over-year to ₹1,38,420.00 crore, while gross advances expanded 24% to ₹1,25,210.00 crore.

Bank	Deposits Growth (YoY)	Advances Growth (YoY)
AU Small Finance Bank	+23.3%	+24.0%
Ujjivan Small Finance Bank	+22.2%	+21.6%
Equitas Small Finance Bank	-	+15.86%

Ujjivan Small Finance Bank posted total deposits of ₹42,219.00 crore, up 22.2% from ₹34,494.00 crore, with gross loan book expanding 21.6% to ₹37,055.00 crore. Sequential quarter-on-quarter growth remained strong at 7.5% for deposits and 7.1% for loans.

Regional Banking Performance

Regional banks also contributed to the sector's positive performance, with Bandhan Bank reporting loans and advances reaching ₹1,45,227.00 crore, up 10% year-over-year, while total deposits grew 11.1% to ₹1,56,723.00 crore. Jammu & Kashmir Bank's total business grew to ₹2,72,109.27 crore, up 13.34% year-over-year, with deposits reaching ₹1,55,861.35 crore, representing 10.58% growth.

Union Bank of India reported gross advances reaching ₹10,16,805.00 crore, up 7.13% year-over-year from ₹9,49,164.00 crore, while Equitas Small Finance Bank's gross advances touched ₹43,269.00 crore, marking a 15.86% year-over-year increase. The comprehensive performance across institutions reflects the sector's fundamental strength and growth potential in the current economic environment.