Avenue Supermarts, operator of the D-Mart retail chain, is scheduled to announce its Q3FY26 earnings on January 10, 2026. The results come amid growing market concerns about the company's growth trajectory and margin pressures, following a softer-than-expected business update released on January 2.

Q3FY26 Financial Performance

The company's Q3FY26 business update revealed mixed signals for investors. Key financial metrics for the quarter ended December 2025 show:

While the 13% revenue growth appears healthy on the surface, it falls below the company's three-year compound annual growth rate (CAGR) and trails the pace of store additions, suggesting negative same-store sales growth (SSSG). This performance has already impacted the stock, which has corrected meaningfully in recent months.

Margin Compression Expected

Analysts anticipate significant margin pressures in Q3FY26 results. On a consolidated basis, market expectations point to EBITDA growth of approximately 8-9% against the 13% revenue growth, indicating margin compression during the quarter.

Several factors are contributing to this pressure:

• GST Rate Cuts: Recent reductions in GST rates on staple and consumable categories from 18% to 12% or 5% have likely impacted average realizations
• Competitive Intensity: Rising competition in the retail sector is limiting pricing power
• Product Mix Changes: Shifting assortment mix is affecting overall profitability
• Price-Led Demand: Stimulation strategies are impacting operating leverage

D-Mart Ready Contribution

A key focus area for Q3FY26 will be the performance of D-Mart Ready, the company's online grocery and e-commerce platform. Market expectations suggest this digital arm could contribute incremental revenue of ₹250-300 crore during the quarter.

While D-Mart Ready's contribution would support overall revenue growth, the profitability impact remains uncertain given typically lower margins in online retail compared to traditional brick-and-mortar operations.

Key Areas to Monitor

Investors and analysts will closely watch several critical aspects in the upcoming earnings announcement:

• Operating performance trends and same-store sales growth trajectory
• Changes in product mix and their impact on margins
• Management commentary on pricing strategies and margin outlook
• Store expansion guidance and growth plans
• Performance metrics for D-Mart Ready platform

Over the first nine months of FY26, faster-than-expected store additions have been among the few positive highlights, with management signaling an accelerated expansion pace.

Stock Performance and Market Position

Ahead of the earnings announcement, Avenue Supermarts shares gained 0.30% on Friday, closing at ₹3,801.30. The Mumbai-headquartered retailer maintains a market capitalization of ₹2,47,363.00 crore but has delivered negative returns of approximately 9% over the past six months, reflecting investor concerns about growth momentum and margin pressures.

The upcoming Q3FY26 results will be crucial in determining whether management can provide reassurance on growth stabilization, same-store sales recovery, and sustained expansion plans that could offer relief to the stock after its recent correction.

Avenue Supermart, which operates the popular DMart supermarket chain across India, is set to announce its third quarter financial results for FY 2025-26 on January 10, 2025. The retail giant has already provided a quarterly business update showing strong revenue growth for the period.

Results Announcement Schedule

According to an exchange filing dated January 2, the company's Board of Directors will convene on Saturday, January 10, to consider and approve the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The company has not yet announced any schedule for an earnings call to discuss the results with investors and analysts.

Q3 FY26 Revenue Performance

The retail chain has already shared its quarterly business update, revealing strong top-line growth for the third quarter. The company's standalone revenue performance demonstrates continued momentum in its core retail operations.

This revenue growth reflects the company's ability to maintain its market position in the competitive retail sector, with DMart continuing to serve customers across its network of supermarkets offering daily essentials, groceries, personal care items, clothing, and household appliances.

Trading Window Restrictions

In compliance with SEBI regulations to prevent insider trading, Avenue Supermart has implemented trading window restrictions for designated persons and their immediate relatives. These restrictions have been in effect since December 15 and will continue until two trading days after the Q3 FY26 results declaration.

Previous Quarter Performance Context

The company's Q2 FY26 results provide useful context for the upcoming announcement, showing consistent growth trends across key financial metrics.

Share Price Movement

Avenue Supermart shares have shown mixed performance across different time periods. The stock gained 1.60% in the past five trading sessions and increased 0.80% on a year-to-date basis. However, the shares declined 1.95% over the past month and dropped 9.99% in the past six months. On a yearly basis, the stock has decreased 1.33%.

The stock reached its 52-week high of ₹4,949.50 on September 4 and touched a 52-week low of ₹3,340.00 on March 3, 2025. Shares closed at ₹3,792.00 on Thursday, down 1.29%, compared to the Nifty 50's 1.01% decline.