Avenue Supermarts Limited, one of India's largest food and grocery retailers operating DMart stores, delivered strong financial performance for the quarter ended December 31, 2025. The company reported standalone revenue growth of 13.2% and significant improvement in profitability metrics, demonstrating resilience despite challenges in the staples segment.

Quarterly Financial Performance

The company's standalone results for Q3FY26 showed robust growth across key financial metrics. Revenue performance was supported by store expansion and operational efficiency, while profitability margins expanded year-on-year.

EBITDA margin improved to 8.4% in Q3FY26 compared to 7.9% in the corresponding quarter last year, while PAT margin expanded to 5.2% from 5.0% in Q3FY25.

Nine-Month Performance Overview

For the nine-month period ended December 31, 2025, Avenue Supermarts maintained strong revenue momentum while facing margin pressures. The company's performance reflected both growth opportunities and operational challenges in the retail environment.

EBITDA margin for the nine-month period stood at 8.1% compared to 8.2% in 9MFY25, while PAT margin was 5.0% versus 5.3% in the previous year.

Consolidated Results and Store Expansion

On a consolidated basis, the company reported total revenue of ₹18,101 crores for Q3FY26, representing growth of 13.3% over Q3FY25. Consolidated PAT reached ₹856 crores, up 18.2% year-on-year, with PAT margin improving to 4.7% from 4.5%.

The company continued its expansion strategy by adding 10 stores during Q3FY26, bringing the total store count to 442 as of December 31, 2025. For the nine-month period, 27 new stores were added to the network.

Management Commentary and Business Strategy

CEO-Designate Anshul Asawa highlighted the company's performance amid market challenges, noting that revenue growth was partially impacted by deflation in staples. He emphasized that stores aged two years and older achieved 5.6% growth in Q3FY26 compared to the same period last year.

The company continues to follow its Everyday Low Cost - Everyday Low Price (EDLC-EDLP) strategy, focusing on competitive procurement, operational efficiency, and delivering value to customers through competitive pricing. Avenue Supermarts operates across 13 states and union territories with a retail business area of 18.3 million square feet, offering a comprehensive range of products including grocery, FMCG, general merchandise, and apparel categories.

Avenue Supermarts Limited (DMart) delivered impressive financial performance for the quarter ended December 31, 2025, alongside announcing key leadership transitions that mark a new chapter for India's leading retail chain.

Strong Financial Performance in Q3FY26

The company demonstrated robust growth across key financial metrics during the third quarter of fiscal year 2026. Revenue momentum remained strong with significant year-on-year improvements.

The company's profitability metrics showed healthy improvements, with net profit margin expanding to 5.24% in Q3FY26 compared to 5.04% in the corresponding quarter of the previous year. Operating margin also strengthened to 8.41% from 7.94% year-on-year.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, Avenue Supermarts maintained its growth trajectory with consistent performance improvements.

Leadership Transition and Management Changes

The Board of Directors approved significant organizational changes during their meeting held on January 10, 2026. Ignatius Navil Noronha's tenure as Managing Director and CEO will conclude on January 31, 2026, marking the end of his successful leadership period.

Anshul Asawa, an IIT Roorkee and IIM Lucknow alumnus, brings extensive experience from his 30-year career at Unilever, where he held leadership roles across India, Asia, and Europe. He joined DMart on March 17, 2025, and has been serving as CEO Designate.

Senior Management Restructuring

The company designated four officials as Senior Management Personnel effective February 1, 2026, reflecting organizational restructuring:

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

Operational and Financial Metrics

The company maintained strong operational efficiency with improved key ratios. Inventory turnover remained healthy at 2.84 times for the quarter, while the current ratio of 2.81 times indicates solid liquidity position. The debt-equity ratio of 0.07 times reflects the company's conservative financial structure.

Employee benefits expense increased to ₹350.41 crores in Q3FY26 from ₹265.98 crores in the previous year, reflecting business expansion and workforce growth. Finance costs rose to ₹33.79 crores compared to ₹15.19 crores year-on-year, primarily due to increased business operations.

Consolidated Results Overview

On a consolidated basis, the company reported revenue from operations of ₹18,100.88 crores for Q3FY26, representing growth from ₹15,972.55 crores in the corresponding previous quarter. Consolidated net profit after tax reached ₹855.78 crores compared to ₹723.54 crores in Q3FY25.

The financial results were approved by the Board of Directors and have undergone limited review by S R B C & Co LLP, the company's statutory auditors, in accordance with regulatory requirements.