Avenue Supermarts has delivered a strong financial performance in Q2, showcasing robust growth across key financial metrics. The company demonstrated solid operational efficiency with significant improvements in profitability and revenue generation compared to the same quarter in the previous year.

Financial Performance Overview

The company's financial results reflect strong business momentum with consistent growth across all major parameters. Avenue Supermarts achieved notable improvements in both top-line and bottom-line performance during the quarter.

Revenue and Profitability Growth

The company's revenue performance showed strong momentum, reaching ₹176.00 billion compared to ₹155.60 billion in the corresponding quarter of the previous year. This represents a healthy year-on-year growth of 13.1%, indicating robust business expansion and market penetration.

Net profit demonstrated even stronger growth trajectory, increasing by 17.6% to ₹9.23 billion from ₹7.85 billion in the same period last year. This outpaced revenue growth, highlighting improved operational efficiency and cost management.

Operational Efficiency Metrics

Avenue Supermarts showed enhanced operational efficiency with EBITDA growing to ₹14.81 billion from ₹12.35 billion, representing a substantial increase of 19.9%. The EBITDA margin also improved to 8.41% compared to 7.94% in the previous year, indicating better cost optimization and operational leverage.

The margin expansion of 47 basis points demonstrates the company's ability to maintain pricing power while managing operational costs effectively. This improvement in profitability metrics reflects strong business fundamentals and efficient resource utilization during the quarter.

Avenue Supermarts, operator of the popular DMart retail chain, delivered strong financial performance in the third quarter of FY26, posting double-digit growth across profit and revenue metrics. The results demonstrate resilience in a challenging retail environment marked by margin pressures and rising operating costs.

Strong Q3 FY26 Financial Performance

The company's consolidated results for the quarter ended December 2025 showed robust growth across key metrics:

*Calculated based on reported standalone growth rate

The standalone revenue of ₹17,612.00 crore, reported earlier in the quarterly business update, aligned closely with the final consolidated numbers, indicating consistent performance across the business.

Operational Context and Business Model

DMart's performance reflects the strength of its everyday low-cost pricing model and supply chain efficiencies. The company focuses on high-volume categories including groceries and essential household products, which provide stability during market fluctuations. However, the retail sector continues to face challenges from rising input costs and competitive pricing pressures that impact margins.

Leadership Transition

Alongside the earnings announcement, Avenue Supermarts informed exchanges of a significant leadership change:

Quarterly Performance Comparison

The Q3 FY26 results represent a marked improvement from the previous quarter's performance:

Notably, Q2 FY26 had experienced profitability pressure with PAT margin declining to 4.1% from 4.6% year-on-year, making the Q3 recovery particularly significant.

Market Performance and Company Profile

DMart shares ended Friday's trading session 0.45% higher, though the stock declined 3.92% over the past five trading sessions. On a one-year basis, DMart shares gained 8.54%. Avenue Supermarts operates over 424 DMart stores as of mid-2025, spanning 12 states including Maharashtra, Gujarat, Karnataka, and Tamil Nadu, with approximately 14,000 permanent staff plus contractual workers.