Avenue Supermarts Limited has announced the successful allotment of commercial paper worth ₹100.00 crores, as disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was made on January 9, 2026, marking a significant short-term financing move by the retail chain operator.

Commercial Paper Details

The commercial paper issuance carries specific terms and conditions that reflect the company's financing strategy. The following table outlines the key parameters of this financial instrument:

Financial Terms and Structure

The commercial paper offers a competitive interest rate of 6.00% per annum, with the entire principal and interest payable at maturity on March 30, 2026. The instrument is structured as an unsecured debt obligation, indicating the company's strong creditworthiness and market confidence. The 80-day tenure positions this as a short-term financing solution for the company's working capital requirements.

Credit Rating and Market Positioning

The commercial paper has received ICRA A1+ credit rating, which represents the highest grade for short-term debt instruments. This rating reflects the company's strong financial position and ability to meet its short-term obligations. The instrument is proposed to be listed on BSE Limited, providing liquidity options for investors.

Regulatory Compliance

The announcement fulfills the company's disclosure obligations under SEBI regulations, ensuring transparency for stakeholders and market participants. The formal communication was signed by Ashu Gupta, Company Secretary & Compliance Officer, maintaining proper corporate governance standards. Avenue Supermarts continues to demonstrate its commitment to regulatory compliance and transparent financial reporting practices.

Avenue Supermarts , the company behind the popular DMart retail chain, is scheduled to release its Q3FY26 earnings results on Saturday, January 10, 2025. The Radhakishan Damani-backed retailer has already provided a glimpse of its December quarter performance through a business update disclosed on January 2, 2025.

Q3FY26 Business Update Highlights

The company reported encouraging top-line growth in its latest business update. Key performance metrics for the quarter include:

The revenue growth reflects sustained demand for essential retail and steady consumer spending across both food and non-food categories. During the quarter, DMart continued its expansion strategy by adding 10 new stores, though one store at Sanpada, Navi Mumbai, Maharashtra, remains temporarily closed for reconstruction.

Brokerage Expectations and Margin Concerns

Analysts anticipate a mixed performance for the December quarter, with revenue growth expected to be offset by margin pressures. According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, the results are expected to be flat to positive, in line with the recent business update.

Motilal Oswal Financial Services projects the following consolidated performance:

Nuvama Wealth Management expects similar trends on a standalone basis, with revenue growth of 13.20% year-on-year and core PAT growth of 6% year-on-year. However, the brokerage anticipates EBITDA margin compression to 7.50% in Q3FY26 from 7.90% in Q3FY25.

Key Factors Impacting Performance

Several factors are expected to influence DMart's quarterly performance:

• Cost Pressures: Elevated operating and input costs are likely to keep operating margins under pressure
• Competitive Intensity: Growing competition, including the expanding quick commerce segment, is impacting pricing strategies
• Gross Margin Stability: Nuvama expects a gross margin of 14%, assuming stable general merchandise and apparel mix
• Revenue vs Profit Growth: Recent quarters have shown revenue growth outpacing net profit expansion, indicating margin compression

Previous Quarter Performance Context

For Q2FY26, Avenue Supermarts reported net profits of ₹684.80 crore, representing a 3.90% increase, while revenue from operations grew 15.40% to ₹16,676.30 crore. This performance pattern of strong revenue growth coupled with modest profit expansion is expected to continue in Q3FY26.

Market Performance and Outlook

DMart shares closed 0.43% higher at ₹3,805.10 on the BSE on Friday, January 9, 2025. On a weekly basis, the stock gained over 2% for the week ended January 9, breaking a seven-week losing streak.

Analysts will closely monitor management commentary on store addition momentum, cost control measures, supply-chain efficiencies, and expansion plans for tier-II and tier-III cities. These factors will be critical in assessing the sustainability of growth and potential margin recovery over the medium to long term.