Avenue Supermarts, which operates DMart, experienced a 4.2% drop in its share price, reaching an intra-day low of ₹4,395 on the Bombay Stock Exchange (BSE). This decline comes despite the company reporting a 19% year-on-year increase in net profit for Q4FY26, amounting to ₹656.59 crore, and a revenue rise to ₹17,683.86 crore. Analysts from Emkay Global Financial Services have maintained a 'Sell' rating, citing concerns over the company's expensive valuation at 80x forward price-to-earnings (P/E) ratio and a slow expansion of its total addressable market. They noted that while the quarter's performance was solid, the uplift in like-for-like sales was influenced by a spike in consumer buying amid geopolitical tensions, which has since normalized. Conversely, Motilal Oswal Financial Services raised its target price to ₹5,200, emphasizing the importance of sustained store openings as a growth driver. They project a 19% compound annual growth rate (CAGR) for consolidated revenue, EBITDA, and profit after tax (PAT) over the next two years. Overall, while Avenue Supermarts shows strong revenue growth, analysts remain cautious about its ability to maintain profitability amid rising competition and operational challenges.