DMart Q3 Profit Jumps 18% to ₹856 Crore in 2025

Introduction

Avenue Supermarts Ltd, the operator of the popular retail chain DMart, announced a strong financial performance for the third quarter ending December 31, 2025. The company reported a consolidated net profit of ₹855.78 crore, marking an 18.28% increase from the ₹723.54 crore recorded in the same quarter of the previous fiscal year. This robust profit growth was achieved on the back of higher revenue and continued store expansion, even as the company navigated challenges like price deflation in key product categories.

Consolidated Financial Performance

For the third quarter of fiscal year 2026, Avenue Supermarts' consolidated revenue from operations grew to ₹18,100.88 crore, a significant rise from ₹15,972.55 crore in the corresponding period a year ago. The growth in the top line was accompanied by a managed increase in expenses. Total expenses for the quarter were ₹16,942.62 crore, compared to ₹15,001.64 crore in the previous year. The results indicate a healthy operational performance, with profit growth outpacing revenue growth, signaling improved efficiency.

Standalone Results and Operational Metrics

On a standalone basis, the company's performance was equally impressive. Net profit for the quarter increased by 17.6% to ₹923 crore, surpassing analysts' estimates of ₹807 crore. Standalone revenue grew by 13.2% year-on-year to ₹17,613 crore. However, this figure fell slightly short of the Street's expectation of ₹17,905 crore. The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by nearly 20% to ₹1,481 crore, with the EBITDA margin improving to 8.4% from 7.9% in the year-ago period.

Key Financial Highlights (Q3 FY2026 vs Q3 FY2025)

Store Expansion and Sales Growth

A key driver of DMart's growth has been its consistent network expansion. During the third quarter, the company added 10 new stores, bringing its total count to 442 as of December 31, 2025. This expansion increased the total retail area by 13.7% year-on-year to 18.3 million square feet. However, like-for-like sales growth, which measures revenue from stores operational for at least 24 months, stood at 5.6%. This was lower than the 8.3% recorded in the same quarter last year, reflecting a slowdown in growth from existing stores.

Management Commentary on Performance

Anshul Asawa, the CEO-Designate of Avenue Supermarts, provided context for 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 attributed the moderated revenue growth partly to external factors, noting, "Revenue growth was partially impacted due to deflation in staples." Staples, along with other food categories, constitute over 57% of the company's total revenue, making their price movements a significant factor.

Leadership Transition Announced

In a significant corporate development, Avenue Supermarts announced a planned leadership transition. The company's board has approved the appointment of Anshul Asawa as the new Chief Executive Officer and Managing Director. His three-year term is set to begin on April 1, 2026, subject to shareholder approval. He will succeed the current MD & CEO, Ignatius Navil Noronha, whose tenure concludes on January 31, 2026.

Nine-Month Financial Overview

For the nine-month period from April to December 2025, the company's consolidated net profit was ₹2,313 crore on a revenue of ₹51,137 crore. This compares to a net profit of ₹2,157 crore and revenue of ₹44,486 crore in the same period of the previous fiscal year. The sustained growth over the nine-month period underscores the company's resilient business model and consistent execution.

Conclusion

Avenue Supermarts' third-quarter results highlight its ability to deliver strong profit growth through strategic store expansion and operational efficiency. While revenue growth was slightly tempered by deflation in key categories, the company's profitability metrics remain robust. The planned leadership transition marks a new chapter for DMart as it continues to solidify its position in India's competitive retail landscape. Investors will be watching closely to see how the new leadership navigates market dynamics and drives the next phase of growth.