Avenue Supermarts Q3 FY26: Profit Jumps 17.6% to ₹923 Crore

Introduction to Q3 Performance

Avenue Supermarts Limited, the operator of the popular retail chain DMart, has announced strong financial results for the third quarter and nine months ended December 31, 2025. The company demonstrated resilient growth, with its standalone Profit After Tax (PAT) increasing by 17.6% year-over-year to ₹923 crore. This performance was supported by a healthy rise in revenue and improved operational efficiency, signaling sustained consumer demand and effective business strategies in a competitive retail environment.

Standalone Financial Performance in Q3 FY26

For the quarter ended December 31, 2025, Avenue Supermarts reported a standalone total revenue of ₹17,613 crore, marking a 13.2% increase from the ₹15,565 crore recorded in the same period of the previous fiscal year. The growth in revenue reflects the company's expanding footprint and consistent value proposition to its customers.

The company's earnings before interest, tax, depreciation, and amortization (EBITDA) for Q3 FY26 stood at ₹1,481 crore, a significant 19.9% jump compared to ₹1,235 crore in Q3 FY25. This improvement in operational profitability led to an expansion in the EBITDA margin, which stood at 8.4%, up from 7.9% in the corresponding quarter last year. Consequently, the net profit margin also saw an uptick, reaching 5.2% compared to 5.0% in Q3 FY25. Basic Earnings Per Share (EPS) for the quarter improved to ₹14.19 from ₹12.06 a year ago.

Consolidated Results Overview

On a consolidated basis, Avenue Supermarts reported total revenue of ₹18,101 crore for Q3 FY26, compared to ₹15,973 crore in the prior year. The consolidated net profit for the quarter was ₹856 crore, up from ₹724 crore in Q3 FY25. The consolidated EBITDA reached ₹1,463 crore, with an EBITDA margin of 8.1%. The consolidated Basic EPS for the quarter was ₹13.15.

Nine-Month Performance (9MFY26)

The company's performance over the nine-month period ending December 31, 2025, also remained robust. Standalone revenue for 9MFY26 grew by 14.9% to ₹49,764 crore. The standalone PAT for this period increased by 8.3% to ₹2,499 crore, while EBITDA rose by 13.0% to ₹4,024 crore. For the same nine-month period, the consolidated total revenue was ₹51,137 crore, and the net profit stood at ₹2,313 crore.

Operational Highlights and Store Expansion

A key driver of DMart's growth is its consistent network expansion. During the third quarter of FY26, the company added 10 new stores to its network. Over the nine-month period, a total of 27 new stores were opened. As of December 31, 2025, the total number of DMart stores stood at 442 across the country. This steady expansion allows the company to tap into new markets and deepen its presence in existing ones, contributing directly to its revenue growth.

Management Commentary

Mr. Anshul Asawa, the CEO-Designate of Avenue Supermarts Limited, provided insights into the quarterly performance. He stated, “Our revenue for the quarter grew by 13.2%. Profit after tax (PAT) grew by 17.6% over the previous year.” He also noted that the growth in older stores remains healthy, with two-year and older DMart stores registering a growth of 5.6% in Q3 FY26 compared to the same quarter in the previous year. Mr. Asawa pointed out a key factor influencing the top line, mentioning, “Revenue growth was partially impacted due to deflation in staples.” This indicates that while volumes may have been strong, lower prices for essential food items slightly moderated the overall revenue increase.

Market Impact and Analysis

The Q3 FY26 results highlight Avenue Supermarts' ability to navigate a complex economic landscape effectively. The improvement in both EBITDA and PAT margins on a standalone basis suggests better cost management and operational leverage. The continued store expansion, a cornerstone of DMart's strategy, remains on track and is a positive indicator for future growth. The management's comment on deflation in staples is an important factor for investors to consider, as it shows resilience in a challenging price environment. The company's focus on a low-cost operating model and value pricing continues to resonate with its target consumer base, driving footfalls and sales.

Conclusion

Avenue Supermarts has delivered a solid performance in the third quarter of fiscal year 2026, with double-digit growth in both revenue and profitability. The company's strategic focus on expanding its store network and maintaining operational efficiency has yielded positive results. Despite minor headwinds from price deflation in certain product categories, the overall financial health of the company remains strong. The Board of Directors is scheduled to meet on January 10, 2026, to formally approve these unaudited financial results.