Avenue Supermarts Limited has delivered strong financial performance in the third quarter of FY26, demonstrating continued growth momentum in India's retail sector. The company reported robust revenue growth and improved profitability metrics, while simultaneously announcing a significant leadership transition that will shape its future direction.

Financial Performance Highlights

The company's standalone financial results for Q3FY26 showed impressive growth across key metrics. Revenue performance and profitability improvements reflect the company's strong operational execution during the quarter.

Nine-Month Performance

For the nine months ended December 31, 2025, the company maintained strong growth trajectory with revenue from operations reaching ₹49,763.53 crores, representing a 14.9% increase from ₹43,327.42 crores in the corresponding period last year. Net profit for the nine-month period stood at ₹2,499.33 crores compared to ₹2,307.47 crores in the previous year, marking an 8.3% growth.

Key Financial Ratios

The company's financial health indicators remained robust during the quarter:

Leadership Transition

The Board of Directors announced a significant leadership change with the appointment of Anshul Asawa as the new Chief Executive Officer effective February 1, 2026, and as Managing Director for a three-year term starting April 1, 2026. This appointment is subject to shareholder approval. Asawa, an IIT Roorkee and IIM Lucknow alumnus, joined the company in March 2025 after a 30-year career at Unilever, where he held leadership roles across India, Asia, and Europe.

Ignatius Navil Noronha will conclude his tenure as Managing Director and CEO on January 31, 2026. The Board acknowledged his valuable contributions during his tenure with the company.

Organizational Restructuring

As part of the leadership transition, the company designated four officials as Senior Management Personnel effective February 1, 2026:

• Sachin Jaolekar, Vice President - FMCG
• Dastgir Shaikh, Vice President - General Merchandising
• Shyam Gupta, Head - Apparels
• Rushabh Ghiya, Head - Investor Relations and Chief of Staff

The quarterly results demonstrate Avenue Supermarts' continued ability to deliver consistent growth while successfully managing operational transitions. The company's strong financial metrics and strategic leadership appointments position it well for sustained performance in the competitive retail landscape.

Q2 FY26 data shows value-fashion retailers leading the charge in same-store sales growth, with V2 Retail and Baazar Style Retail significantly outpacing larger established players. The performance indicates a faster demand recovery at the mass market end of the retail spectrum.

Understanding Same Store Sales Growth

Same-store sales growth (SSSG) measures revenue increases in stores operating for at least one year, excluding growth from new store openings. This metric reflects organic growth through increased customer footfall or higher-value product mix shifts, without additional capital expenditure. Retailers typically report both normal SSSG and adjusted SSSG, with the latter excluding one-time factors like festival timing variations, store renovations, or temporary disruptions.

Q2 FY26 Performance Leaders

V2 Retail Takes the Lead

V2 Retail emerged as the clear winner with exceptional same-store sales performance. The value-fashion retailer operates under brands including Godspeed, Herrlich, Glamora, and Honey Brats, offering affordable clothing and lifestyle products.

The company's stores are concentrated in northern India, with Uttar Pradesh (48 stores), Bihar (44 stores), and Odisha (30 stores) representing major markets.

Baazar Style Retail Close Second

Baazar Style Retail Limited, established in 2013, demonstrated strong performance with 22% SSSG in Q2 FY26. The company focuses on Eastern India, particularly Odisha and West Bengal, delivering fashion clothing at competitive prices.

Mid-Tier Performers

Vishal Mega Mart and V-Mart

Vishal Mega Mart, targeting middle and lower-middle-income consumers across apparel, general merchandise, and FMCG categories, reported 12.8% adjusted SSSG. The retailer added 28 stores in Q2 FY26, reaching 742 total stores with balanced regional presence.

V-Mart Retail achieved 11% SSSG while expanding by 36 stores to reach 533 total outlets. The chain offers diverse products from clothing to daily essentials, with strong presence in Uttar Pradesh (162 stores) and Bihar (76 stores).

Avenue Supermarts (DMart) Performance

Avenue Supermarts Limited, operating the D-Mart retail chain, recorded the lowest SSSG at 6.8% among the compared retailers. The value retailer added 17 stores in H1 FY26, bringing total count to 432 stores. DMart's network is concentrated in southwestern India, with Maharashtra leading at 120 stores, followed by Gujarat (68 stores), Karnataka (41 stores), and Andhra Pradesh (42 stores).

Market Insights

The Q2 FY26 data clearly demonstrates that value-fashion retailers focusing on mass market segments are experiencing significantly higher same-store sales growth compared to larger, more diversified retail chains. This trend suggests robust demand recovery in the affordable fashion segment, with consumers showing preference for value-oriented retailers over big-box formats. The performance gap between V2 Retail's 23.4% and DMart's 6.8% SSSG highlights the varying recovery patterns across different retail categories and target demographics.