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DMart Q3 FY26 Results: Avenue Supermarts Delivers Strong Profit Growth, Streamlines Leadership Amid Competitive Pressure
Avenue Supermarts, the operator of India’s largest value retail chain DMart, delivered a resilient financial performance in the third quarter of FY26, reinforcing its ability to protect profitability even as consumption trends remain uneven. The company reported an 18.3% year-on-year rise in consolidated net profit to ₹856 crore for the October–December quarter, compared with ₹724 crore in the same period last year, according to regulatory filings released after market hours. On a standalone basis, net profit grew 17.6% to ₹923.05 crore, highlighting steady operational execution across its core brick-and-mortar business.
Revenue from operations for the quarter increased 13.3% year-on-year to ₹18,100.88 crore, up from ₹15,972.55 crore a year earlier. This growth came despite continued price deflation in staple categories, which has weighed on headline revenue expansion across the broader retail sector. Total expenses rose 12.9% to ₹16,942.62 crore, indicating disciplined cost control that allowed profitability to outpace revenue growth. Earnings per share (EPS) improved to ₹13.15 from ₹11.12 in the corresponding quarter last year, reflecting operating leverage and margin stability.
One of the notable operational highlights of the quarter was the revival in performance of mature stores. Two-year-old DMart outlets recorded like-for-like growth of 5.6%, a modest but important signal of demand stability in an otherwise cautious consumer environment. Management noted that overall revenue for the quarter grew 13.2%, while profit after tax expanded at a faster pace of 17.6%, underlining the effectiveness of the company’s everyday low-cost model. During the December quarter, DMart added ten new stores, taking its total store count to 442 across India.
The sales mix remained largely unchanged, with food and grocery continuing to anchor the business and contributing 57.19% of total revenue. General merchandise and apparel accounted for 22.98%, while non-food FMCG products made up 19.83%. Management acknowledged that revenue growth was partially impacted by deflation in essential staples, a trend that has limited volume-led acceleration across the retail industry. Despite this, the company reiterated its commitment to offering consistent value to customers, although it refrained from issuing forward-looking guidance on store expansion or growth targets.
Alongside its financial results, Avenue Supermarts announced a significant transition in leadership. The quarter marked the completion of Neville Noronha’s long tenure with the company, spanning nearly two decades. Anshul Asawa has now taken charge as CEO, stepping into the role at a time when the retail landscape is becoming increasingly competitive, particularly with the rapid rise of quick-commerce platforms offering ultra-fast grocery delivery. The leadership change signals a new phase for DMart as it balances scale, efficiency, and evolving consumer expectations.
The company also disclosed changes to its senior management structure, effective February 1, 2026, as part of a streamlined reporting framework. Sachin Jaolekar was appointed Vice President of FMCG, Dastgir Shaikh as Vice President of General Merchandising, Shyam Gupta as Head of Apparels, and Rushabh Ghiya as Head of Investor Relations and Chief of Staff. This restructuring represents the second major shift in reporting lines since the company’s listing in 2017 and reflects a sharper focus on operational clarity and accountability under the new leadership.
Market participants responded calmly to the earnings announcement. Avenue Supermarts shares closed 0.43% higher at ₹3,805.10 in the previous trading session, having opened at ₹3,788.55. The results were announced after market hours, with investors largely factoring in stable earnings momentum and disciplined expansion. Analysts noted that while revenue growth remains moderate, margin performance exceeded expectations due to tight cost management and operating efficiencies.
According to market experts, the quarter underscores DMart’s ability to defend profitability in a subdued demand environment. Analysts highlighted that EBITDA and net profit outperformed estimates, supported by cost discipline and operating leverage. However, they cautioned that demand indicators remain soft, with flat revenue per square foot and muted like-for-like growth reflecting the impact of staple deflation and the absence of a low base. Going forward, DMart’s measured pace of store additions and simplified leadership structure are expected to support earnings resilience, even as a sustained recovery in volumes remains a key factor to watch.
Source: Company exchange filings, management commentary, and analyst insights from domestic brokerage research.