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.

Avenue Supermarts Ltd, which operates the popular DMart retail chain, delivered strong financial results for the third quarter of FY26, demonstrating resilient performance amid challenging market conditions. The company reported significant growth in both profitability and revenue, supported by improved operational efficiency and steady consumer demand across its retail network.

Financial Performance Highlights

The company's quarterly financial performance showed robust growth across key metrics:

The improvement in EBITDA margin to 8.1% from 7.6% in the previous year indicates enhanced operational efficiency and better cost management. This margin expansion, coupled with strong revenue growth, contributed to the significant increase in profitability.

Operational Updates and Store Expansion

Anshul Asawa, CEO-Designate of Avenue Supermarts Limited, provided insights into the company's operational performance and growth strategy. The company successfully opened 10 new stores during the quarter, expanding its total store count to 442 as of December 31, 2025.

Same-store sales growth remained positive, with stores that are two years and older recording a 5.6% growth in Q3 FY26 compared to the same period in the previous year. However, Asawa noted that revenue growth was partially impacted due to deflation in staples, highlighting the challenging pricing environment in essential commodities.

Nine-Month Performance Overview

The company's nine-month performance for FY26 demonstrated consistent growth momentum:

While the nine-month EBITDA margin showed a slight decline to 7.8% from 7.9% in the previous year, the absolute EBITDA growth of 12.6% reflects the company's ability to maintain profitability while scaling operations.

Market Position and Growth Strategy

Avenue Supermarts continues to strengthen its position in the Indian retail market through strategic store expansion and operational improvements. The company's focus on maintaining steady growth in same-store sales while expanding its footprint demonstrates a balanced approach to growth and profitability. The consistent performance across quarters, despite challenges such as commodity deflation, underscores the resilience of the DMart business model and its appeal to value-conscious consumers.