Motilal Oswal Recommends 'BUY' on Avenue Supermarts; Sets Target at Rs 4600

• Avenue Supermarts (DMART) reported strong profitability in 3QFY26, exceeding expectations.
• Gross Margin expanded by 50bp YoY to 14.6%, driven by GST reduction benefits and favorable category mix.
• EBITDA margin expanded by 50bp to 8.4%, leading to 20% YoY standalone EBITDA growth.
• Revenue growth moderated to ~13% YoY, primarily due to ~14% store area addition, with LFL growth at 5.6%.
• DMART added 10 stores in 3QFY26, with acceleration in store additions being the main growth driver.

Why It Matters: Motilal Oswal maintains a 'BUY' rating on DMART, projecting a target price of INR 4,600.