Avenue Supermarts (DMart) Q3 FY26 Results: Steady Growth Despite Pricing Headwinds

Market Overview

Avenue Supermarts Ltd (DMart) delivered a steady operational performance in Q3 FY26, navigating a challenging pricing environment marked by deflation in staple categories. While revenue growth moderated compared to previous quarters, profitability improved on the back of operating leverage, disciplined cost control, and calibrated store expansion.

Avenue Supermarts Q3 FY26 Financial Highlights

Revenue Growth Moderates

Revenue from operations increased 13.3% year-on-year (YoY) to ₹18,101 crore in Q3 FY26. This marks a slowdown from the high-teens growth recorded in earlier quarters, largely due to price deflation in essential commodities that weighed on value growth despite stable demand volumes.

Like-for-like (LFL) sales growth for stores operational for more than two years stood at 5.6% YoY, indicating resilient consumption trends amid a challenging pricing backdrop.

Profitability Improves on Operating Leverage

Profit after tax (PAT) rose 18.3% YoY to ₹856 crore, reflecting a recovery from muted growth in recent quarters. The improvement was driven by better operating leverage, controlled costs, and the benefits of scale as the store network expands.

The earnings performance highlights DMart’s ability to protect margins even when revenue growth faces temporary headwinds from pricing pressures.

Store Expansion and Network Strength

During the quarter, 10 new stores were added, taking the total store count to 442 as of December 31, 2025. The company continues to follow a measured expansion strategy, balancing growth opportunities with return metrics and execution discipline.

Revenue Mix Remains Stable

The revenue composition during 9MFY26 remained broadly unchanged:

• Food: ~57%
  
  
• Non-FMCG: ~20%
  
  
• General Merchandise & Apparel: ~23%
  
  

The stable mix underscores DMart’s strength in essentials while maintaining diversification across discretionary categories.

Key Business Takeaways

• Revenue growth moderated due to staple deflation, not demand weakness
  
  
• PAT growth outpaced revenue, supported by operating leverage
  
  
• Store expansion remains disciplined and gradual
  
  
• Core value-driven retail strategy continues to resonate with consumers
  

Outlook: Consistency Amid Short-Term Challenges

While near-term revenue growth for Avenue Supermarts remains sensitive to pricing dynamics in essential commodities, the company’s focus on affordability, supply-chain efficiency, and cost discipline positions it well for sustained performance.

As India’s organised retail penetration continues to rise, DMart’s scalable model, strong execution, and conservative expansion strategy are expected to support steady long-term growth, even amid short-term pricing headwinds.